What’s the secret to selling your home for a higher price?
More often than not, it’s about the time, money and effort you devote to the property while living there. The more updates and proper maintenance, the more likely you are to see it reflected in the final sale price.
But not all renovations are equal, and some make for a better return on investment when it comes to the sale price.
[READ: Guide to Average Home Maintenance Costs.]
How Do You Best Use Your Renovation Dollars?
When considering home renovations, how do you know what’s a solid investment? A worthy update can either reduce your cost of living while you remain in the home or add significant value to the home sale price when you decide to put it on the market.
“Neutrality should not be the objective of a home renovation,” said Ricardo Rodriguez, principal of Ricardo Rodriguez & Associates of Coldwell Banker Realty in Boston, in an email. “Prospective buyers want to feel something when they walk through a home, so having some personality in those renovations always helps. The things to be concerned about are too-personal touches, or too-trendy elements. Those tend to date a home and compromise future marketability. If you love the color red, don’t install a red kitchen, but maybe it is wallpaper in the powder room or other details that can be easily modified by the next homeowner.
“I think the real mistake people make during renovations is not understanding the future potential value of their home and who the profile of their future buyer is, which means they can either overspend or underspend.”
It’s also critical to focus on the parts of your home that are the most vital. Having solid roofing, well-serviced HVAC and other systems in excellent condition is important, according to Mallory Micetich, home expert with home improvement network and information company Angi in Austin, Texas.
[Related:The Pros and Cons of Metal Roofing]
Once the vital systems are taken care of, kitchens and bathrooms are often the go-to rooms for renovations since they’re the rooms house hunters seem to care about most. It’s important to not go too big, though. Remodeling Magazine’s 2023 Cost vs. Value Report shows a major upscale kitchen renovation will recoup just 31.7% of the cost when the property sells, and an upscale bathroom remodel will recoup just 36.7%.
That doesn’t mean you should avoid making any changes to the kitchen or bathroom. Instead, consider smaller changes that may help your return on investment (ROI). Remodeling Magazine found midrange kitchen remodels can recover 85.7% of their cost and midrange bath remodels 66.7%. Not only do they fetch a higher return, smaller updates are more feasible with a limited remodeling budget.
But nothing gets people in the door like curb appeal.
“There are aesthetic features that will help you make a good impression,” Micetich says. “For example, a garage door can improve the curb appeal of your home, while also making it feel safer.”
11 Home Updates That Consider Cost and Scale
Whether you’re planning to remain in the home for a while or are looking to freshen up the place to put it on the market, here are some updates that experts say will give you the most bang for your buck:
— Paint.
— Backsplash.
— Windows.
— Cabinets.
— Bathroom.
— Siding.
— Fireplace.
— Energy-saving thermostat.
— Garage door.
— Solar attic fan.
— Landscaping.
Paint
The quickest way to make a room look new again is to add a fresh coat of paint.
“Paint can create magic,” Rodriguez says. “It can be applied not only to walls but to cabinets, millwork and even tile. It is the least expensive way to change a room completely.”
Like most real estate professionals, Rodriguez recommends neutrals, but he says it doesn’t need to be white or gray: “Neutrals come in creams, muted blues and other warm tones.”
More important than the color, though, is the quality of the work, he says.
“If you can afford it, hire the best possible person,” says Rodriguez. “If you cannot pay somebody, learn how to do it well. A shabby paint job can do more harm than good in the way a prospective buyer perceives the overall quality of your home.”
Backsplash
Adding a backsplash to your kitchen can make a world of a difference, and it doesn’t have to cost a lot. Angi reports that backsplash installation costs $1,000 on average, depending on the size and materials you choose. A backsplash isn’t particularly difficult to install yourself, and doesn’t take long to do, but like other DIY opportunities around the house, it’s not a project to complete sloppily if you want it to add value and appeal to your home.
Windows
Old windows on a house can be an eyesore, not to mention a pain to open and close. According to Remodeling Magazine’s 2023 Cost vs. Value Report, replacing old windows with vinyl windows can recoup as much as 68.5% of your expense. More expensive windows, like wood, return less, but you can still expect to get about 61.2% back when you sell your home.
New windows can also have the cost-saving benefit of cutting down on drafts and increasing energy efficiency. Especially if you’re not planning to move yet, consider the possible reduction in utility bills when you look at your bottom line.
Cabinets
Attractive cabinets are key to an enticing kitchen, but that doesn’t necessarily require brand new cabinets. Remodeling Magazine’s Cost vs. Value Report notes that replacing just the cabinet faces with a Shaker style as part of a midrange kitchen remodel can fetch 85.7% of the cost when it comes time to sell. If you have the classic five-piece, framed-look of Shaker cabinets and they’re in pretty good shape, refinishing or painting is a great alternative.
[Related:How to Update Your Kitchen Cabinets without Replacing Them]
Bathroom
The bathroom is another key room for buyers, so giving it a face-lift prior to sale is important. Like the kitchen, you don’t necessarily have to do a massive overhaul. According to Remodeling Magazine, a midrange bathroom remodel, which includes a steel tub, ceramic tile surround, new vanity top, a new medicine cabinet, new tile floor, among other touches, is worth about 66.7% of the amount you spend when you sell your home.
Siding
The exterior of your house can take a beating from rain, snow, hail and dirt, and after a while, it shows. The Cost vs. Value Report notes new siding will recoup much of the cost when you sell your house — 94.7% for vinyl or 88.5% for fiber-cement. Replacing part of that siding with manufactured stone veneer, however, has a greater ROI. Homeowners who install a stone veneer on their house — usually on the bottom third of the exterior — see as much as 102.3% of the cost come back in the sale price.
Functioning Fireplace
If you have one, don’t get rid of it. According to Redfin data, homes with fireplaces listed for 13% more than the national median sales price and sold, on average, for 99.9% of their asking price in 2021. It might not be worth adding a fireplace to your home, but updating one that’s already there and doing it well will get attention.
Energy-Saving Thermostat
A smart thermostat, like the Nest Learning Thermostat, that can learn your habits and turn heat or air on only while you’re home serves as a great potential energy saver. While it might not increase a home’s value significantly, the amount you could save on utility bills is worth the $250.
Garage Door
A new garage door may not provide the same enjoyment that a brand-new kitchen might in the interim before you sell, Fisher points out, but this project has a visual impact on a house you’re planning to put on the market soon. Remodeling’s Cost vs. Value Report shows replacing a garage door can recoup 102.7% of the cost in resale.
Solar Attic Fan
This update probably won’t go widely noticed when it comes time to sell, but solar attic fans are worth it if you’ll be in the home a while. The fans help expel hot air from the attic in the summer when your air conditioner is working harder to keep the home cool. Angi reports most homeowners spend between $369 and $913 for a standard attic fan installation, including the cost of the fan itself. Installing a solar attic fan will likely cost about the same amount, with a range of $300 to $1,000 given by Angi.
Landscaping
The house’s curb appeal is often undervalued by homeowners when they put their home on the market. But as the first thing any house hunter will see when they come to tour the home, it’s important to seed any dead patches of grass, mow the lawn regularly and add a bit of color with flowers or bushes without overwhelming the yard.
Be Realistic About When to Hire a Professional
There are so many ways to update your home, but they’re not all things you should try yourself. When establishing your project budget, account for the need for skilled and licensed labor. You may think you can cut costs on a bathroom remodel by replacing the tub or installing a new shower light fixture yourself, but you may get in over your head with the plumbing and electrical work.
Do-it-yourself work on key systems like electric and plumbing, when done poorly, can lead to a far greater cost than hiring a professional from the start. At best, you may end up paying for the update twice. At worst, you could cause a fire hazard or damage to the interior of the house, and your work may not be up to code.
“Nearly 80% of homeowners experienced a minor or major mistake during their DIY projects,” says Micetich. “In general, I recommend avoiding DIY projects involving major home systems such as major electrical work, structural work and even most plumbing projects. If you haven’t done a project yourself before, we recommend starting small. Maybe try painting a small room that isn’t used often.”
Micetich adds, “When we think about DIY, there are three main things that you want to consider: time, talent and tools. Do you have the time needed to complete the task? Do you have the skills to handle the job? And do you already have the tools that you need? If you can honestly answer all three of these questions with a yes, you might consider doing the project yourself.”
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11 Popular Home Updates That Are Worth the Money originally appeared on usnews.com
