Homeowners tend to be overwhelmed with the many projects it takes to set their property apart from the competition in the neighborhood and attract potential buyers. How can you really be sure that your improvements are worth the money, time and effort invested, whether you’re doing smaller projects or major renovations? To get started, you can stick to updating the areas that are guaranteed to increase property value and return on investment (ROI). To make the process easier, the key areas are: exterior updates and decorative details, kitchen renovations, and window replacements.
Updating the exterior of the house
The first thing potential buyers see when they visit a potential home is the exterior. If the roof, siding, front door, and garage are in terrible shape, there is a good chance that buyers won’t care very much about the inside of the home. Even keeping up with the landscaping of the property is key – it’s not called “curb appeal” for nothing!
A 2014 cost versus value study by Remodeling Magazine concluded that updating the home’s exterior cladding with a fiber cement material could amortize 88% of the homeowner’s original investment. When renovating your home, be sure to choose the best siding material that will suit your needs and those of the property. If the house is in a bad weather area, vinyl siding has the potential to crack or warp, while fiber cement is made by a mixture of sand, clay, cement, and wood pulp for high durability and longevity. There are many options for a long-lasting, sustainable siding that will bring a significant return on investment, including options made from environmentally friendly building materials.
Updating the front door and entrance is a major addition to the value of your home as it is the first thing buyers see and go through. Both the front door and the garage door achieve a return of at least 83% when swapped for more up-to-date lights. Replacing the front door with a steel door with a semi-glass pane and a new set of locks is generally recommended as it requires significantly less maintenance than wooden doors. If you spend around $ 2,000 on entrance and garage door replacements, there is a good chance that almost all of your money will be returned when the sale is completed.
Deciding on a new roof can be difficult when considering updates and renovations to your home during the resale. A new roof may not necessarily add value to your property depending on the other conditions, but an old roof in need of major repairs can cost you more. Buyers can edit a damaged roof to their advantage and negotiate a lower sale price to make their own changes once the sale is complete. If a roof repair is on your list, you may be lucky enough to see a 67% return on your investment. Another area to consider is solar panels to improve energy and energy efficiency.
In 2007, a study conducted by HomeGain found that an investment of just $ 500 in new landscaping produced a return on investment roughly four times its original cost. Maintaining the landscape can be vital to your home. Think of it as marketing for the property – potential buyers want to see the home nicely framed and with a lawn or yard that is clearly manicured.
Cooking repairs in the kitchen
The kitchen is the area of the house that is the turning point for a resale. Regardless of the rest of the home, buyers will give priority to the kitchen when making their decision and submitting their offers. Even if the other rooms in the house need to be repaired, most buyers will want ready-to-move kitchens. Kitchen projects offer a wide range of options to help with upfront costs, which can range from a few thousand to more than tens of thousands of dollars.
Updating your kitchen can be as easy as adding elbow grease on a few weekday evenings or on a long DIY weekend. A small kitchen remodel under $ 25,000 can achieve an ROI of up to 87%. Consider the following minimal cosmetic treatments to make the house shine:
- Replacing obsolete furniture, fittings and lighting
- Update of existing floors and moldings
- Installation of new appliances or countertops
- neutral color on the walls and ceiling throughout the house
If it works within your budget and sales timeline, you can core the existing kitchen down to the studs and rebuild it with modern features in mind. With a large project, a return of around 74% can be achieved for the entire property value of the house. You will likely need the help of a professional kitchen and bathroom interior designer, but the guide is well worth the reduced stress compared to planning a major remodel on your own.
Replace Windows for Maximum Efficiency
It doesn’t seem like an obvious fix, but updating the home’s existing windows can result in nearly 79% returns on sale. Single pane wooden windows can have a negative impact on property value and increase your energy bills while you are still living there. New windows improve the attractiveness of the curb and provide a natural source of light and noise reduction in the house. The potential for reducing your energy bills is 25% while still living at home. The average ROI for new windows is 87%, so it doesn’t make sense to postpone window replacement any longer.
Homeowners in the following locations get a higher ROI when replacing windows:
- San Francisco
Unfortunately, living in the desert doesn’t reflect the same benefits. In arid climates, you simply won’t see the return on your investment that the bigger cities get – you’d be lucky enough to get a 62% return in the Southwest.
Don’t just approach and tackle projects without a game plan, focus on areas that are guaranteed to improve the property’s real estate value. This ensures a faster resale. Look at your property with comparable home values to find out what makes the most sense for your home. Contact your local real estate agency and read the previous years cost-value renovation study for better guidance during the resale process.
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