If you’re considering selling your home sometime in the future, you may be thinking about doing a few remodeling projects first. This is totally understandable. After all, a nice-looking home with some upgrades will sell much more quickly than a dingy or less-than-modern one.
That said, it’s important that all homeowners carefully consider the return on investment (ROI) they might see from each renovation made. This is especially true for those who’ll be selling soon and won’t have the time to enjoy the upgrades they make. In these cases, the remodel is purely to boost the value of the home and have it sell more quickly.
Here’s a look at a few remodeling projects that offer the best ROI and what you can expect to recoup from each one.
A fresh coat of paint can be had for very little money. Better yet, you can likely do this job yourself, saving some serious money in labor costs.
Even if you don’t love the idea of breaking out the paint cans and trays, consider doing it anyway. This simple project will make your home more inviting and raise its value way higher than the cost of the paint itself.
In the eyes of most homebuyers, bigger is better. In fact, this report from Remodelling Magazine shows that in 2017, the addition of a new master suite, family room, or second story alone would sell for up to 71% of the total renovation cost.
Meanwhile, 2018 buyers seem to favor new decks and bathrooms, paying as much as 82% of the remodel cost.
As mentioned above, bathroom additions or remodels are a pretty good investment, especially if you own a relatively large home or one with only one bathroom.
If you decide to go this route, try sticking to a mid-range remodel. Luxury items such as heated floors and fog-free mirrors don’t tend to increase the value of a home. However, a new shower, modern flooring, and side-by-side sinks can make a huge difference and offer a national average return of a 70%. According to this article from HGTV, some may even recoup over 100% on a bathroom remodel!
The kitchen is the heart of every home. For this reason, it’s important that this room shows its importance when your home hits the real estate market.
Unfortunately, a full kitchen remodel can be quite expensive upfront. However, according to Bankrate, a series of minor kitchen updates can easily snag an 81% return.
Carpet is losing its popularity and wood floors are all the rage. This is logical enough; wood floors are much easier to care for and they look nice for decades. For this reason, buyers are willing to pay a significant amount for wood flooring versus carpeting.
In fact, Realtor.com states that the ROI from hardwood floors hovers between 70% and 80%. Can’t afford actual wood? Wood veneer has a similar return and a smaller price tag.
Windows and Doors
Energy efficiency is a huge selling point, and one of the best ways to get it is by putting in new windows and doors that help maintain consistent temperatures indoors. Besides that, a new front door and garage door significantly improve the curb appeal of any home, making it more sellable.
The money you’ll make from new windows and doors is generally between 69% and 98% of the total investment, depending on which replacement products you choose.
Siding replacement is another one of those things that will improve the curb appeal of your home, drawing attention to it and pulling people in to see more. Better yet, it’s a great investment.
For instance, replacing old vinyl siding with stone veneer usually snags the seller a 97% return on investment. Meanwhile, typical vinyl siding offers around 76% ROI.
It’s important to note that there’s such a thing as improving your home too much. For example, the owner of a home in a $100,000 neighborhood wouldn’t want to raise the price of their own home to $200,000. It would probably never sell at this price, and the owners would likely lose money on their improvements. As a general rule, it’s best to steer clear of being the highest-priced home in your area.
That being said, adding a few touches to your place before listing it for sale can bring a lot of good. What will you do to spruce up your home?