With the right project, it’s possible to add significant value to your home.
Home improvements can help you sell your home in more ways than one. By making it more desirable, you will attract more buyers. Additionally, they’ll be willing to spend more because they’ll be getting a better value.
However, home improvement projects can get expensive and you don’t always get the best return on your investment.
Before beginning any project, calculate the potential ROI. Then think about the value if you plan to stay in the home for a while before selling. Need some ideas? Check out this list of projects that can offer a positive ROI.
Improving Curb Appeal
The first thing a buyer sees is the outside of your home. Let’s be honest, though we’d like to believe otherwise, everybody judges a book by its cover.
This makes the exterior appearance of your home crucial to a successful (and lucrative) sale. At the very least, your yard should be well-maintained. Avoid having overgrown grass or fallen leaves strewn all over the lawn.
If you plan to stay for a bit still, you can invest in thoughtful landscaping. For example, plant trees to shade your home. Done well, this can cut cooling costs by as much as 40%. This will appeal to both environmentally minded and budget buyers. Plus, trees are lovely and help freshen the air.
The siding is another spot where you can see big returns. Adding manufactured stone siding to the lower third of your home’s facade can dramatically change the appearance of your house and gets a 95% ROI.
Everybody loves to eat and the kitchen is often the center of a home for this reason. Thus, upgrading your kitchen is money well-spent. But only if you spend it on the right things.
Lavish, designer kitchens are lovely, but they’re also expensive and unlikely to get a good ROI. Focus on more down-to-earth home improvements instead. For example, replacing outdated appliances with energy-efficient, stainless steel ones are sure to get noticed. Modern buyers love them and will pay more for a kitchen with upgrades. If the cabinets are old, have them refaced rather than replaced. And a fresh coat of paint can do wonders for tired, dirty walls.
The right kitchen upgrades can yield an 80-85% ROI. More if your kitchen is particularly old or you’re savvy about how you spend money.
Bathrooms are another room that buyers will be looking at closely. Again, a deluxe bathroom remodel will garner a poor ROI, but the right touches can earn 70% or more ROI.
Update the fixtures if they’re old and replace faded laminate flooring with clean and crisp tile. Regrout the shower tile for a fresh look. Freshen up the walls with a new coat of paint. Stick with neutral colors that appeal to a wide range of tastes.
Additionally, modern families are looking for homes with at least two bathrooms. If your home only has one, you could recoup 80%-130% of your investment by adding one.
Upgrades That Decrease Maintenance Costs
No one likes spending tons of money on maintenance. For this reason, buyers will appreciate upgrades that decrease these costs.
Older homes tend to have parts that are wearing out. For example, the roof may still be in good shape, but it will only stay that way for a few more years. Buyers are thinking about that as they tour homes. They’re also willing to pay more for a home that won’t need repairs. How much more? Well, a newly replaced roof can net as much as 105% ROI.
Other upgrades that can see a positive ROI are the HVAC system and other appliances.
Increase Visual Space
What’s the next best thing to adding square footage to your home? Making your existing space look bigger.
Bright spaces seem larger, so swap out draperies for vertical blinds and use mirrors to increase light. Declutter the space by removing unused items and furniture. Create a shelving unit under the stairs to store clutter.
You can also actually increase your usable by reinventing rooms. What’s in your attic or basement? If you’re like most people, boxes of unused stuff. Get rid of what you don’t need and move the rest to a shed in the backyard. Now, turn the space into a game room for your kids, an extra bedroom, or even a small apartment!
Home Improvements Can Increase Value
Don’t shy away from home improvements because you don’t think you’ll get a good ROI. With the right project, it’s possible to add significant value to your home. You don’t want to miss out on that when it’s time to sell.
Author Bio: Ben Mizes is the CEO of Clever Real Estate, an online platform that connects home buyers and sellers with a top-rated, full-service real estate agent for a fraction of the traditional commission fee.