One of the toughest questions to answer when selling your home, is what renovations you should consider. One expert said, “people are always going to want to feel happy, cozy, and comfortable in their homes. I think even during a recession or a time when people are more frugal and conservative with their spending, there are some smart and easy upgrades that can be done” [1].
Fixing up your home can be an expensive process, so you want to be sure to select renovations that will help bring the best out of your home. Here are some of the most profitable renovations seen by experts in today’s market.
The New
Although making new additions to your home may seem expensive up front, they can pay off in big ways in the final sale. Kitchen remodels, for example, can return anywhere from 60% to 120% of your investment [2]. This includes renovations like replacing the countertops, painting the cabinets, or replacing the sink. Another important focus of kitchen remodels is replacing outdated appliances with new ones. Having old appliances in need of replacement can turn buyers away very quickly. Experts from HGTV said, “the remodel should be within limits because you don’t want your kitchen to be head and shoulders above the rest of the house or the neighborhood” [2].
Another remodel that can see major returns is adding an additional bathroom. “HGTV estimates that you can recoup 80%-130% of whatever you spend adding a bathroom” [2]. One thing that can turn buyers away, especially in houses with a higher number of bedrooms, is not having enough bathrooms to go along with them. Even just adding a half-bath can go a long way. Updating existing bathrooms with new tile, fixtures like shower heads, or a new toilet can also help increase the value and overall appearance of your home.
The Improved
Not all renovations have to be additions of new features. Focusing on worn, outdated parts of your home can also be an easy, cost-effective way to go the extra mile with potential buyers. For example, siding and windows can be a great way to give your home a boost. “Siding and windows that are old or damaged can have a dramatic negative impact on your home’s curb appeal and a potential buyer’s first impression. And as far as new windows, buyers are looking for homes with high energy efficiency ratings” [2]. A first impression can go a long way, so making improvements like these to the exterior of your home can help attract more buyers.
Similar to the appeal of energy efficient windows, another update that can help you earn more money when selling, and save your buyer money in the long run is installing energy-efficient insulation. If you have an older home, it may be time to update your insulation with newer, more cost-effective materials. This can be a major selling point for potential buyers because it will save them on utilities moving forward.
Garage door replacement is also another update that can have a big impact on home value. “A spanking new garage door can really make a statement and increase your home’s curb appeal. Research shows that recoupment is near 100% nationwide” [2]. This renovation has a very high success rate, and therefore, could be a great focus for you when deciding what to focus on.
The Takeaway
Renovating your home can be on the pricier side of your preparations when selling, but it can have major pay-offs. From big projects like a kitchen remodel, to smaller projects like changing out the bathroom light fixtures, finding the best renovation for your home can help you make the most of your home’s value.
Sources
[2]https://www.smithandassociates.com/blog/the-7-most-profitable-home-improvements-you-can-make.html