When preparing to sell your home, it can be challenging to determine which renovations will help you sell your property quickly and at the highest price. Questions like whether to replace the furnace or renovate the kitchen, overhaul the bathroom or add a new one, fix the roof or invest in new appliances can be perplexing.
You might also be curious about cost-effective, small improvements that can significantly enhance your home’s appeal. Most importantly, you’ll want to know how much of your investment you can expect to recoup from the listing price.
Below, we’ve compiled a list of the most lucrative home renovations in terms of return on investment when you’re preparing to sell.
Painting
Return: 100% +
Painting emerges as one of the most accessible, efficient, and budget-friendly methods to enhance your home’s appeal for the real estate market. The added bonus is the potential for substantial ROI. Many painting projects yield returns of over 100% on the initial investment, making it a highly profitable endeavor. Therefore, it’s a wise choice to rearrange your furniture strategically and apply a fresh coat of paint to revamp your property.
It’s crucial to remember that when prepping your home for sale, you should aim for a neutral, spotless, and contemporary look. While painting your living room or bedroom in vibrant or unconventional hues may align with your personal taste, it may not cater to the preferences of prospective buyers.
Garage Doors
Return: 98%
Curb appeal plays a significant role in the world of real estate, impacting both buyers and sellers alike. Ensuring your home’s exterior is in prime condition can attract a larger pool of potential buyers.
While small improvements like landscaping and fresh potted plants can enhance your home’s outward appearance, one of the most impactful investments with nearly a 100% return on investment is replacing your garage doors.
Given that garage doors occupy a substantial portion of your home’s exterior and serve as a prominent focal point when approaching the property, ensuring they are in impeccable condition can greatly elevate the perceived value of your home.
The best part? You’re likely to recoup nearly all, if not all, of your investment in this upgrade. It’s a win-win situation for both the buyer and seller
Entry Door
Return: 91%
This may appear as a modest enhancement, but it holds significant potential for elevating your home’s market readiness. Similar to painting, it’s essential to opt for neutral colors that harmonize with your home’s exterior. The goal is to achieve clean lines and a refreshed ambiance for your front porch, as the initial impression is vital to prospective buyers.
When it comes to preparing your home for the market, these seemingly minor updates can have a substantial impact. Selecting neutral colors that complement your home’s exterior is crucial. Aim for clean lines and a rejuvenated atmosphere on your front porch, as the initial impression is of utmost importance to potential buyers
Additional Square Footage
Return: 70%-80%
Many homeowners aspire to have more space, and the addition of extra rooms can significantly enhance your home’s appeal in the real estate market. The best part is that you can typically recoup a substantial portion of your investment. Therefore, if your home is on the smaller side, particularly when compared to similar properties, it may be a smart move to consider expanding your living space.
A 2005 study conducted for the National Association of Realtors revealed that for every additional 1,000 square feet of space, a home’s sale price increased by 30% or more. This underscores the value of expanding your home’s square footage when looking to maximize its market value.
Bathroom Addition
Return: 60%
When it comes to bathrooms, you’ve got two choices: renovate your current one or consider adding an extra bathroom. For many households, having just a single bathroom can be a deal-breaker. So, both from a practical and financial perspective, opting to add an additional bathroom often makes the most sense.
It’s a good practice to conduct some research and determine the prevailing number of bathrooms in neighboring homes. If your property has one less bathroom than the local average, it can deter potential buyers from considering your home. This could affect the appeal of your property in the market, making the addition of another bathroom a worthwhile consideration to align with local expectations.
Minor Kitchen Remodel
Return: 81%
Distinguishing between a minor and a major kitchen remodel reveals a significant cost gap. A minor kitchen renovation typically falls in the range of twenty to twenty-five thousand dollars, while a major overhaul can be twice that amount. Opting for the lower end of remodeling can still result in a highly attractive kitchen.
Minor remodeling entails upgrades like new countertops, cabinet doors, flooring, and fixtures. On the other hand, a major remodel includes appliance replacements, lighting fixtures, sink upgrades, and cabinet replacements.
Ikea offers aesthetically pleasing, modern kitchen options at a substantially lower cost compared to the average kitchen remodel. This is something worth considering, especially if your current kitchen’s condition could negatively affect your home’s valuation in the seller’s market.
Bathroom Remodel
Return: 70%
Stunning kitchens and bathrooms hold a special appeal for homeowners. While it’s often more practical to consider adding a bathroom if needed, there’s value in renovating existing ones, particularly if you already have an adequate number of bathrooms in your home.
Many experts suggest opting for a walk-in shower over a traditional tub. This not only enhances the bathroom’s spatial efficiency but also aligns with the fact that most individuals don’t use tubs unless they have young children, as per common usage patterns. Therefore, directing your renovation efforts toward the most deserving bathrooms can be a wise investment
Replacement Roof
Return: 68%
Including “new roof” in your property listing can significantly enhance its appeal, even though you might only recoup around 70% of the cost. A damaged or leaking roof can dissuade potential buyers and lead to your house lingering on the market.
It’s important to keep in mind that a home’s functionality is a top priority for buyers. Therefore, if the roof is in poor condition, it’s often wiser to prioritize its replacement over other renovations, such as the kitchen counter. A solid roof ensures the integrity and safety of the entire property, making it a key selling point.
Adding a Deck
Return: 70%
Your home may already have a deck in which case replacing the wood or refurbishing it, may be all you need to do. But if you do not have a deck and decide to put one on your home before you sell, then you will likely get close to three quarters of the cost back. And any additional space that has been added to your home is going to increase the value.
Conclusion
When selling your home, it’s crucial to adopt a buyer’s perspective, especially since you’re likely to become a buyer yourself in the near future. Your own priorities as a buyer can guide your decision-making process.
While a stunning kitchen is appealing, it can’t compensate for a faulty furnace or a leaky roof. Similarly, a single beautiful bathroom won’t make up for an overall shortage of bathrooms. It’s essential to conduct a thorough evaluation of your property’s needs, ensuring that you don’t overlook simple but impactful aspects like curb appeal and prioritizing functionality over aesthetics.
Keep in mind that many buyers anticipate making upgrades once they move into a new home, so placing excessive emphasis on appearance over structural integrity may not yield the best results.
Additionally, the percentage of return on investment varies based on factors like your home’s price, the neighborhood’s average price, your city’s real estate market conditions, and its overall competitiveness. Therefore, it’s wise to assess your specific home’s needs and focus on projects that promise the highest return on investment. Make informed decisions to maximize the value of your property in the market. If you’re ready to take action and discuss your home selling strategy in detail, don’t hesitate to reach out to a real estate professional for personalized guidance and assistance.
Sources
Which Home Improvements Pay Off?
Deck Building: What Will Be Your Return On Investment?