Whether you are thinking of selling your home this year or in a couple of years, it’s always important to keep resale value in mind when deciding on any remodeling or renovation projects. There are many home improvement projects that may seem like a good idea but don’t add any value to your property, especially if the market is experiencing a slump. In fact, there are some improvements that can take away from your asking price if you do decide to sell. How do you know what the right projects are and what are the most important renovations to add value to your home? In this blog we’ll go over some of the most common home improvement projects that will make your home feel new again but will also bring you a decent return on your investment when the time comes to sell.
- Kitchen Renovation
The kitchen is easily the most prominent room in a home, many people actually consider it to be the heart of the home. Think about it, you spend the majority of your time at home in or around your kitchen – it’s the control center of a family where everyone comes together to eat, talk and enjoy each other’s company. Because of this, updates to the kitchen and full renovations can majorly pay off if you decide to sell your home. According to HGTV you can expect to gain back somewhere between 60% – 120% of your investment if you do the remodel right without going overboard. With any renovation, it’s important to make sure that your space isn’t fancier than any of the comps in the neighborhood. Whether you choose to do a basic update or full-blown renovation entirely depends on you, but if you are planning on selling your home it wouldn’t be wise to invest in a super deluxe kitchen. Homes that go overboard on the renovations end up sitting on the market because the asking price is too high in comparison to the other homes for sale in the neighborhood and buyers are not willing to pay the price no matter how incredible the upgrades are. A kitchen remodel can cost you anywhere from $5,000 to more than $60,000! You can get the biggest bang for your buck with fresh paint, new flooring and energy efficient appliances. If you choose to alter the layout of the kitchen it will cost you more, but it is important to note that open concept floor plans are extremely popular and most modern homes feature a big kitchen space that opens up into the rest of the home allowing for great flow. Painting cabinets, adding new hardware, updating a backsplash and replacing the floor are all cosmetic changes that will really give an existing kitchen an incredible facelift. Replacing old appliances with newer, more energy efficient models will also attract more buyers once you are ready to sell your home. Look for Energy Star-rated appliances that are not only better for the environment, but also help you save money by using less energy.
- Bathroom Remodel
Bathrooms are extremely important rooms in a home, and if your home only has one bathroom you may actually consider adding an extra one. If you add a bathroom to your home so that the bedroom and bathroom count is similar to other homes around you then you can recoup a large chunk of your investment – around 80% – 130% of what you spend. If you decide to add in a bathroom make sure to find a good place for it, work with an experienced contractor and get your plans approved and permitted before you begin on any work. If you decide to simply give a bathroom, or multiple bathrooms in your home an updated look the cost of the project largely depends on the materials and accessories you select. The cost of demolition is very low, but once you add in labor and the price of materials your bathroom remodel, depending on the size, could cost you anywhere between $7,000 and more than $25,000. Replacing bathroom floors with fresh tile, adding in an attention-grabbing mirror with cool light fixtures and painting the room will also make a big difference for potential buyers.
- Invest in Energy-Efficient Windows
These days, buyers are looking for homes that offer numerous upgrades that provide the ultimate in energy efficiency. Old windows that are single-pane and drafty are a major turn off and could turn away many buyers. Energy Star-rated windows can save a homeowner up to $500 per year in cooling and heating costs by making the home more energy efficient, and it’s definitely something to take into consideration. Upgrading the windows in your home to Energy Star-rated windows could also qualify you for a green energy tax credit and additional credits from your state or utility company. The estimated cost of replacing windows in an average-sized home can cost between $7,500-$10,000 or more if the property has unique shaped windows.
- New Garage Door
A good-looking garage door is at the top of the list when it comes to getting a good return on your investment if you decide to sell your house. A garage door is part of the overall curb appeal of a home, so you want to make sure that it doesn’t look grungy or like it’s falling apart. The average cost of this project is between $3,000-$4,000, and the estimate includes removing and disposing of an existing door and replacing it with a new one. This upgrade will almost certainly get you back almost every dollar you spent on it when you sell your home.
- Landscape Design
Curb appeal is so important when listing your home for sale – it’s the first thing that a buyer will notice when they walk up to see the house. You don’t need to invest in expensive landscape design, but it is important to keep the yard trimmed, fresh and clean. If you are considering landscape design and aren’t planning on selling for a few years, then you should absolutely go for it because it will pay off when you are ready to sell. Basic landscape design can cost you about $4,000, but when your yard is the envy of your neighbors, you’ll be very glad that you decided to go for it. A charming focal point like a walkway or a water feature also adds major value to your property.
- Minor Exterior Improvements
There’s nothing more unappealing than peeling paint, a scuffed front door and curb appeal that isn’t well maintained. If you invest in basic exterior improvements like an updated front door, fresh coat of paint and fixing anything that needs to be updated or replaced you are likely to get a really good return on your investment at resale. Depending on your budget you can improve the look of your home by removing old awnings from windows and doors and to swap out old railings for real wood supports. If your home was painted before 1978 make sure to test for lead before sanding or scraping.
- Add a Patio, Deck or Porch Addition
If you own a property with an expansive yard a wooden deck can be an awesome enhancement that allows you to enjoy the outdoors around your home. The average cost of adding a wooden deck is approximately $13,500, and you should be able to recoup 75% of this investment at the time of sale. You can really enhance this addition with decorative planters, nice deck chairs, a massive umbrella and an attractive outdoor dining set.
- Basic Maintenance
If you’re not ready or willing to splurge on a big renovation you really don’t have to, but before you sell your home it is important to make sure it’s in the best shape possible. This means that even the most basic updates can add value to your home. Keep the paint fresh, fix the roof if it leaks, replace any wood that has dry rot and get rid of mold. These types of chores will not only keep your home from deteriorating over time, but buyers are looking to invest in a home that is healthy, solid and safe. Pride of ownership goes a long way, and any issues that could have been easily resolved will be uncovered by an inspection report anyway, so it’s best to take care of them as they come up.
Remodeling your home will add to your enjoyment and it can also boost your home’s value over time. Renovations are always taken into account when a property appraiser assesses your home’s current market value and it’s also important when pricing your home to sell. If you have any questions about preparing your home to sell and whether or not a certain project will increase the value of your home, please contact us. We would be happy to offer a free home evaluation as well as guidance and suggestions that will set you up for success when you are ready to sell.