If you read last month’s piece on multiple offer situations, or aren’t living under a rock, you know we’re in a seller’s market. Even though buyers are competing with each other to buy your home, that doesn’t mean you should leave money on the table by skipping some renovations that will bring you some serious ROI.
Windows are one of the most daunting things to repair mainly due to cost. If you have an older home with deteriorating windows, expect it to affect your sales price. It’s an easy thing for the average buyer and their inspector to pinpoint as a problem. Whether you’re replacing your older windows with vinyl or wood, you’ll likely get about an 84 percent rate of return.
Bathrooms are what buyers focus on the most while looking for their dream home. It’s got to be fashionable and functional. Since this type of renovation can be on the expensive side, it’s normal for buyers to seek out properties that already have updated bathrooms. You can rest easy knowing your bathroom renovation will give you roughly a 75 percent rate of return on your investment.
The type of curb appeal you’re used to hearing about is typically cosmetic landscaping. When it comes to real ROI on your renovations, we’ve got to go a bit further. Replacing your siding if it’s outdated, worn, or damaged will rake in an 87 percent rate of return on your investment. Roofs are a huge concern for homebuyers, so with a 74 percent rate of return, it’s a really good idea for you to complete a renovation on your outdated or damaged roof.
The most common upgrades to make in your kitchen would be countertops, cabinets, and appliances. Countertops will increase the perceived value quite a lot but this type of renovation will cost you. It’s important when choosing a new countertop to think about resale. Stick with a neutral color and pattern that complements the colors you already have in the home.
If your cabinets are falling apart and obviously in need of repair or replacement, it’s smart to do so prior to listing. If buyers see dilapidated cabinets they’ll look for other problems in the house and that won’t end well. On the other hand, if your cabinets are in good shape but the finish is outdated, consider hiring a professional painter to get a fresh new coat of paint on them. This will appear as though you’ve completely replaced your cabinets, though your professional paint job will have cost significantly less.
Appliances are the biggest bang for your buck. Stainless steel appliances are still king and you can find a complete matching set for around $5,000 in most cases.
Hardwood is easily the most sought after flooring type amongst buyers. If you have it in your budget, and the value of homes in your neighborhood can carry that kind of upgrade, this renovation will surely increase the perceived and market value of your home.
If you already have hardwood flooring, having them refinished will make a huge difference to homebuyers. If you skip this small and very painless renovation, you’ll likely see a deduction in your sales price to reflect the needed repair.
A fresh coat of paint is the easiest and most affordable way to transform your space. A bad paint job is worse than none at all, so I’d recommend hiring a professional painter to do this so that you aren’t creating more work for the new buyer.
Updating fixtures is by far the easiest and most cost effective way to add value to your home. You can completely transform your home by upgrading plumbing and lighting fixtures, but going even further with new hardware and doorknobs will make a huge difference in the perceived and market value of your home. It goes without saying that when updating fixtures, it’s best to stick to the same finish, (i.e., brushed bronze, polished nickel, or brushed nickel are the most common options).