Using a $100,000 home equity loan? Here are 3 home renovations experts say to make

You've been wanting to make updates to your home for a while now. You plan to borrow a $100,000 home equity loan to fund renovations and updates, but you're not quite sure what you should do to your home. You may want your renovations to increase your home's value because you might sell in the next few years. Or, you might have plans to stay in your home for a long time and you've been waiting since you bought the home to renovate those one or two rooms that you use all the time and have become dated and worn. 

A $100,000 home equity loan gives you a lot of options for renovations. In most cases, it's probably enough to renovate at least two different rooms in your home. But how do you narrow down which rooms or areas you should update? Which room renovations are best for increasing your home's value if you plan to sell in the next couple of years? Are all renovations expensive, or are there small things you can do to increase value without spending thousands? We spoke with experts to get the answers to these key questions.

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3 home renovations experts say to make with a $100,000 home equity loan

Generally speaking, there are a few key areas of your home that should be the target of the renovations you want to make with a $100,000 home equity loan, especially if you're considering selling your home in the next five years, says Melanie Hartman, owner of Creo Home Buyers, a home-buying company.

Renovate your kitchen

When it comes to renovations, the kitchen is king, says Adjina Dekidjiev, a broker at real estate firm Coldwell Banker Warburg. 

"The scope of work that buyers think when they see an older kitchen … will definitely affect how long it takes to sell the home and the buyer's first perception of the space," says Dekidjiev.

Additionally, many homebuyers don't have the expertise to renovate a kitchen, so they typically want updates done before they move in, Hartman says.

The cost of a full kitchen renovation depends on several factors including which state you're in and your neighborhood but, generally speaking, you can expect to pay $30,000 to $50,000, Dekidjiev says. How much you pay will depend on the quality of the appliances and materials you use in your renovation; the higher-end the products, the more likely you are to spend up to or more than $50,000.

Using a $100,000 home equity loan for renovations opens up the door for a lot of customizations and upgrades that can drive up renovation costs if you're looking to compete with other homes in the neighborhood that have multiple unique features and use high-end materials, Hartman says. 

"You can add little unique things to increase value," she says. "We're talking about you having $100,000, so you can go really crazy with kitchen and bathroom renovations … There's all sorts of luxury things you can do. You could spend $100,000 in your kitchen [alone] if you wanted to." 

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Update your bathroom

Bathrooms can be, in some cases, just as expensive as a kitchen renovation because of the complexity involved in renovating both rooms, says Hartman. 

"You have the plumbing, there's gas (potentially), and the electrical components," she says. "It's much more expensive renovating kitchens and bathrooms than someone's bedroom, which, at most, would be adding new drywall, paint and maybe a closet." 

You can expect to pay a minimum of $15,000 to overhaul a bathroom, depending on where you live, Hartman says. However, that number can go much higher depending on several factors like the countertops, flooring and fixtures you choose. 

Dekidjiev puts the number at $30,000 to $50,000 for a complete bathroom renovation. Converting a tub into a shower, adding new fixtures and swapping out the sink are a few of the expenses you can expect to pay, she says. 

In general, the bathrooms join the kitchen as the two main areas you should renovate if you've got a $100,000 to spend on making your home better. 

"They're the heart of the home, and they're the most expensive rooms to update," Hartman says.

Small updates around the home

If you plan on selling your home soon and have home equity loan money leftover from major renovations, there are several small things you can do to spruce up your home's overall appeal for potential buyers. 

"There are a number of low-cost things a seller can do prior to listing," Dekidjiev says, "Painting is usually the No. 1 recommendation. Also, changing the lighting to ensure that it's bright in every room … cleaning the windows helps, too."

The bottom line

If your goal for getting a $100,000 home equity loan is to renovate parts of your home to increase its value, you should expect to get more than half of your spend back in increased home value, Hartman says. 

"Typically if you're renovating, you're … looking at recouping a minimum of 60% of your costs and definitely no more than 80%," she says. 

One renovation that may not bring as much of a return on your investment is flooring, Dekidjiev says. 

"I wouldn't spend a ton of money on flooring because people usually have specific ideas about the flooring they want," she says. "People may want wide-plank floors [while others] want darker floors; it's very subjective and very personal. I would rather redo the kitchen and bath, with the kitchen being the priority."