When selling your home, it can be tough to decide which renovations will attract buyers and maximize your sale price. Should you prioritize replacing the furnace or renovating the kitchen? Consider whether to gut the bathroom or add another one, and think about roof repairs versus new appliances.
You might also be looking for small, budget-friendly updates that can significantly upgrade your home. Most importantly, how much will these investments impact your listing price?
Here’s a list of the most worthwhile renovations to prepare your home for the market.
Painting
Return: 100% +
Painting is a quick, affordable way to prepare your home for the market, often yielding more than 100% of your investment in increased value. To attract buyers, aim for a neutral, clean, and modern look; bold colors may not appeal to everyone.
Garage Doors
Return: 98%
Curb appeal is crucial in real estate, as it attracts potential buyers. Improving the exterior of your home, such as landscaping or adding potted plants, can help.
One of the best investments with nearly 100% return is replacing your garage doors. They significantly impact your home’s appearance from the street, and upgrading them can enhance the property’s perceived value.
Plus, you’ll likely recoup most, if not all, of your investment. It’s a win-win for both buyers and sellers!
Entry Door
Return: 91%
It may seem like a minor upgrade, but it can significantly impact how well your home sells. Similar to painting, it’s important to choose neutral colors that complement the exterior of your home.
Aim for clean lines and a fresh appearance on your front porch, as first impressions are crucial for prospective buyers..
Additional Square Footage
Return: 70%-80%
Homeowners often desire more space, and adding a room or two can increase your home’s market appeal and provide a good return on investment. If your home is smaller compared to others in the area, expanding may be a wise choice.
A 2005 study by the National Association of Realtors found that for every 1,000 square feet, a home’s sale price increased by 30% or more.
Bathroom Addition
Return: 60%
You have two choices for bathrooms: renovate the existing one or add a new one.
For many families, having only one bathroom can be a deal breaker, so adding another often makes more sense.
Research the number of bathrooms in nearby homes; if you have one less than the average, it could deter potential buyers.
Minor Kitchen Remodel
Return: 81%
When considering kitchen remodels, it’s important to understand the distinction between minor and major renovations. Minor remodels generally range from $20,000 to $25,000, while major remodels can often be double that cost.
Notably, even a minor remodel can significantly enhance the aesthetics and functionality of your kitchen.
Minor updates typically include replacing countertops and, refacing the cabinets, new flooring and fixtures. In contrast, major remodels involve more extensive changes, such as custom cabinets, upgrading appliances, altering lighting, and enlarging the space. For those looking to achieve a modern kitchen at a lower cost, companies like Ikea provide appealing options that can be a worthwhile consideration.
Bathroom Remodel
Return: 70%
Homeowners often value beautiful, well-designed bathrooms. Renovating outdated bathrooms can significantly increase your home’s appeal and market value. A remodel can enhance functionality and create a serene atmosphere, making it an excellent investment with a strong return.
Many articles suggest replacing a bathtub with a walk-in shower. This change can create a more spacious bathroom. As long as there is at least one bathtub in the home, most people still prefer having the option available.
Replacement Roof
Return: 68%
Being able to add a ‘new roof’ to your listing can add a lot more credit than you think. And while you may only recoup close to 70% of the expense, having a worn-out or leaking roof can deter buyers and leave your house sitting on the market.
And remember, the function of your home is going to be a buyer’s top priority, so it’s better to replace the roof than the kitchen counter if the roof is not in good condition.
Adding a Deck
Return: 70%
Your home may already have a deck; in that case, replacing the wood or refurbishing it may be all you need to do.
You may find that simply staging your home is all you need to do.
However, if you do not currently have a deck and choose to add one before selling your home, you will likely recover about three-quarters of the cost. Any extra space that you add to your home can be a valuable asset when selling.
Finished Basement
Return: 70%
In the article Finished Basements Add Space and Home Value they recommend that you shouldn’t spend more than 10% of the value of your home and that it is better to stay between 5% – 10% refinishing a basement.
But as with adding square footage or a deck, a finished basement adds livable space to a home, which is a big part of buyers’ decision-making when looking for what fits their needs.
Again, assess the market and see if it makes the most sense regarding where to put your money for upgrades.
Conclusion
When selling your home, you have to think like a buyer. As you are likely to be purchasing a home after you sell the one you currently live in, you know what is most important to you.
A beautiful kitchen will not compensate for a broken furnace or a leaking roof, and one beautiful bathroom will not compensate for the overall lack of bathrooms.
Make a realistic assessment of your property and what needs to be done. Make sure you are not overlooking simple things like curb appeal and that you’re prioritizing function over aesthetics.
And remember, most buyers plan to do upgrades themselves once they move into a new home, so don’t overemphasize how it looks over the actual structure.
Also, note that the percentage you get back is based on a number of factors, including the price of your home, the average price of the neighborhood, the city you live in, and how hot the market is. Assess what needs to be done in your home and opt for the projects that you will make the most money back on.
Sources
The Paint Colors that can Boost Your Homes Value
These 15 Home Renovations Have The Highest Return on Investment
Which Home Improvements Pay Off?
Deck Building: What Will Be Your Return On Investment?
Finished Basements Add Space and Home Value