One common question about selling your home is whether or not to upgrade it before you sell. Ideally, you want to sell a home for more than you paid, but this can often prove difficult if you are unsure what the ROI is for certain home improvement projects.
Remodeling during the pandemic hit an all-time high. One thing emphasized by the pandemic is the amount of time we spend at home and how necessary comfortable living arrangements are. Because everyone spent extended hours inside their home, naturally they looked at how to improve their living situations. In 2021 76% of homeowners did a home improvement project , proving the value of modernized living spaces. Those on the prowl for a new home, appreciate and look for certain amenities provided by an upgraded house.
The top 3 amenities current homebuyers look for are an updated kitchen and bathroom, open floor plans, and low maintenance/energy efficient features. So in order to attract prospective buyers, homeowners are left deciding to renovate or not to renovate.
When taking on a home improvement project, you’re taking on costs for that project. If the job is completed well, it will add to the value of your home. But it is important to keep in mind that the return on investment for home renovations is rarely 100%, and you won’t enjoy the financial benefit of the work until after you sell the house.
Nationally, these are the top projects that returned the greatest percentage of costs at resale.
1. Kitchen Remodel
Having minor to mid-range kitchen remodeling projects done is a fantastic way to increase the value of any home. In the U.S. homeowners who invest in an upgraded kitchen before selling, recoup about 71% of the remodeling costs. Modern households often have more than one person cooking at any given moment. That may be the reason 81% of perspective buyers desire a double sink, followed by a kitchen island at 64% and a walk-in pantry at 62%.
When considering what section of your home to enhance, start with the kitchen. A bonus is you will get to enjoy a modern kitchen during your final days in that house.
Keep in mind a fancy chef’s kitchen might be your dream, but if it’s not the next homebuyer’s dream you can expect a lower payoff, to be safe stick to mid-range upgrades.
*All stats provided by the Better Business Bureau
2. Curb Appeal Upgrades
A buyer’s first impression of a home is incredibly important. It is important to show potential buyers that you care about your property and have maintained it well.
A possible curb appeal upgrade could be a fresh coat of exterior paint, this adds an estimated 152% ROI. You can also replace exterior lighting, wash siding with a pressure washer, fix the walkway, add pops of color with plants or flowers and make sure your lawn is cut. Some of these projects may seem frivolous, but when selling a home its best to leave no stone unturned and maximize your potential profits
3. Increase Livable Square Footage
There are multiple ways to increase the size of livable spaces in your home. If you have an unfinished basement, renovating is a great way to increase the overall value of your home, a potential ROI of 75%.
You may also consider building an addition to your home, to increase your livable square footage. This will add major value to your home, you can make it into a living space, additional bedroom, or office.
4. Bathroom Renovations
An updated bathroom is a major selling point for any home. When renovating seek to incorporate sleek surfaces for a sparkling space that makes cleaning easy. Homeowners can recover up to 57% of the cost of a bathroom renovation if they choose to sell their homes.
If your home has one and a half bathrooms consider adding a shower to the half bathroom or add a half bathroom close to a living area for guest use. This can greatly increase the appraised value of any home.
5. Upgrade HVAC
Buyers are often appalled and taken aback when a home’s heating, air conditioning, and ventilation systems are in poor shape. Similar to curb appeal, a well-maintained heating and cooling system shows that you care about your home. Harmful toxins can accumulate in dirty ventilation units and potentially harm the inhabitants of the house. Having a new HVAC system installed will increase the likelihood your home is sold.
*Consider an air-quality test to verify if the air in your home is safe
Do your best to calculate your return on investment (ROI) by using a simple addition problem:
After Repair Value = Property’s Current Value + Value of Renovations. If it makes economical sense to upgrade your home before you sell it, reach out to potential remodeling companies to get a quote.
Top-rated remodeling company Superior Damage Restoration offers a free consultation and will provide you with a tailor-made plan in order to maximize your ROI on any home improvement project.