Perla IrishAre you preparing to sell your home? If so, it’s a great idea to think about doing a little renovating.
Before spending time calling contractors and designers, it’s essential to learn what improvements will help you recoup the costs of these investments.
Without working to improve your home, it might not fetch a lot of money at sale time. You might also find that your home stays on the market for quite some time.
To get the most money from the sale of your home, here are six home improvements real estate agents recommend for maximum ROI.
1. The Front Door
As you prepare to sell your home, it’s smart to take a closer look at its front door. Research shows that renovating the front door of your home can provide up to 86.5% ROI.
But what colors should you choose when choosing a new front door? Experts recommend staying away from “loud” or bold colors.
Entry doors painted in bright colors like hot pink or yellow can create a distracting environment. It might even be headache-inducing to certain buyers, something no seller wants.
If your front is excessively worn or otherwise damaged, it might be best to replace your front door instead of painting it.
Regardless of what type of front door you choose, try not to worry too much about costs. Making an excellent first impression is worth far more than the cost of your new door.
2. Upgrading the Bathroom
As time goes on, it’s easy for rooms in your home to become outdated. With that in mind, you might be living with an outdated bathroom that’s in desperate need of renovation.
You never want to treat your bathroom as an afterthought while trying to sell your home.
Research from Home light found that a good bathroom renovation increases your home’s value by 2%-3%.
While 2%-3% might not seem like a major increase, it is when looking at the value of a home. Imagine that you’re selling your home for $200,000.
After renovating your home’s bathroom, your home ends up selling for 3% more. This means your home now sells for $206,000, an increase of $6,000!
One key factor to remember while renovating your bathroom is that larger renovations aren’t always better, at least from an ROI standpoint.
Instead, try to aim for a small to medium level renovation that isn’t super expensive.
A few bathroom renovations that provide the most bang for your buck are installing a vanity, replacing your bathroom’s flooring, and installing a large shower or bathtub.
3. Increasing the Built-Up Area
Oftentimes, sellers will obsess over every inch of their home’s interior spaces. Unfortunately, focusing too much on what’s inside your home can make you forget about the importance of increasing its square footage.
One study found that 44% of real estate agents agreed that the need for more space is the number one motivator for home buyers.
And, when it comes to getting the biggest ROI, even adding a small amount of space can have big ramifications on your home’s sale price.
The key to success with increasing your home’s square footage is knowing when to hire help from professionals.
If you’re not handy with this type of work, it can lead to one of many home renovation mistakes.
4. Getting the Kitchen Up to Date
No list of beneficial home renovations is complete without talking about the kitchen. The kitchen in your home can make or break the sale of your home.
Whether one person or a large family is buying your home, they’re going to spend considerable amounts of time in the kitchen.
Fortunately, the kitchen is an incredibly valuable room to update. Research shows that renovating your kitchen provides a 92.9% return on investment.
That’s almost like spending $1 on renovations and getting 93 cents back, not a bad arrangement!
There are many types of popular kitchen upgrades. In a recent survey from Kiplinger regarding popular home upgrades, 83% of buyers want homes with walk-in pantries.
However, this upgrade isn’t always possible for people with smaller kitchens or needing more budget-friendly home upgrades.
If you’re interested in less expensive kitchen upgrades, here are few other popular upgrades:
- A kitchen island
- Backsplashes
- New countertops
- Updated cabinetry
5. Ticking Off a Big-Ticket Item
In the past, you might have put off a few “big-ticket” ways to improve your home. This might have been because you didn’t have time to get your renovation set up.
You might have also delayed these larger renovations because there wasn’t enough money available.
Regardless of your reasoning, taking care of a big-ticket renovation is a great way to increase the ROI of your home.
Types of big-ticket renovations include things like:
- Detached garages
- Guest buildings
- New bedrooms/bathrooms/etc
- Sunrooms
Because they’re big-ticket items, it’s easy for these renovations to cost tens of thousands of dollars. However, these additions help bring your home into a higher category.
If your home is in a higher category, it’s going to increase its value. For more tips on how to make the most money from selling your home, go to Isoldmyhouse.com
6. Insulating Your Home
While you’re thinking of ways to improve your home, it’s understandable if insulation isn’t the first thing that pops into your head.
Considering that insulation isn’t something that buyers and sellers often see, it’s easy to see why this crucial part of a home often gets forgotten about.
If you have wiggle room in your renovation budget, it’s worth spending money on new insulation. Research shows that, on average, getting new insulation increases a home’s resale value by $1,482.
So, why do so many buyers care about insulation? With a properly insulated home, buyers won’t worry about sweating during the summer or shivering during cold winters.
New insulation also helps stop outside air from getting into a home, which is great for keeping energy bills low.
Yet another reason why new insulation is beneficial is that it can help block outside noise from being heard by your home’s occupants.
Getting ready to sell your home is an exciting time. To ensure your home sells for as much as possible, seek out improvements that provide real value.
By following these tips, you’ll experience the joy of making serious money from the sale of your home.
