Let’s be real - when it comes to selling your home, every single homeowner has one main goal: to end up with as much money in their pocket as possible.
And I completely understand, as a home is possibly the largest investment you’ll ever make for your family, and maximizing returns is what investing is all about!
So, when coaching homeowners before the sale, I often get questions about what items they should fix, repair, or improve before listing their property.
It’s a great question, as the last thing you want to do is invest thousands of dollars into a home repair (and deal with a lot of time, mess, hassle, etc.) only to not recoup that money once buyers start writing offers.
But the good news is that the right fixes and improvements can significantly enhance your home’s value. Don’t forget that an increase in value may show up in two ways: by being far more attractive to buyers (bringing in more people, showings, offers, etc.) and, of course, a higher purchase price that lands more money in your pocket.
So, which home improvements will actually yield the best results for sellers?
We can turn to data from the 2022 Remodeling Impact Report released by the National Association of Realtors, which outlines the cost recovery for popular interior remodeling projects:
147% Refinishing Hardwood Floors
118% Installing New Wood Flooring
100% Upgrading Insulation
86% Converting Basement to A Living Area
83% Renovating Closets
75% Converting Attic to Living Area
71% Bathroom Renovation
67% Kitchen Upgrade
63% Adding A New Bathroom
56% Add New Bedroom Suite
But remember that those projects are just inside your home and entail spending big bucks in hopes for a huge return. That’s a huge risk to take, especially when it also involves weeks or months to finish the work, a huge cost upfront, and hopes that the market doesn’t change or decline.
Most homeowners may not need (or want) some of those big repairs or improvements, so what are some smaller (and less expensive) fixes that can boost your ROI when selling?
1. Curb Appeal:
First impressions matter and improving your home's curb appeal can make a substantial difference. According to the National Association of Realtors (NAR), landscaping improvements yield an average ROI of 100-200%. Enhance your home's exterior by ensuring a well-maintained lawn, fresh paint, clean windows, and a welcoming entryway.
2. Bathroom Updates:
Buyers pay close attention to bathrooms, so it's crucial to ensure they are in good condition. And you don’t always need to do a major overhaul - simple updates, such as regrouting tiles, replacing fixtures, and adding fresh caulking, can go a long way. Bathroom remodels typically provide an ROI of 70-80%.
3. Energy-Efficient Improvements:
Energy efficiency is increasingly important to homebuyers. Consider upgrading insulation, replacing old windows with energy-efficient ones, and installing programmable thermostats. These improvements not only reduce energy costs but also provide a competitive advantage, with an ROI ranging from 50-70%.
4. Minor Interior Renovations:
Minor interior renovations can freshen up your home's appearance without breaking the bank. Focus on painting walls with neutral colors, replacing worn-out flooring, and updating light fixtures. These updates have a high ROI, typically ranging from 50-70%.
5. Smart Home Technology:
Investing in smart home technology can give your property a modern edge. Consider installing smart thermostats, security systems, and lighting controls. These upgrades offer convenience and can attract tech-savvy buyers, with an ROI of around 50%.
6. Exterior Improvements:
Alongside curb appeal, exterior improvements such as deck additions, patio upgrades, and the addition of outdoor living spaces can increase your home's value. These improvements have an ROI of approximately 50-60%, providing buyers with additional usable square footage.
Trying installing a hanging/swing seat on your front porch or back patio and watch the offers come in!
7. Cosmetic Enhancements:
Do not overlook the power of small cosmetic enhancements. Simple fixes, such as replacing outdated hardware, refreshing paint, or upgrading lighting fixtures, can give your home a polished look. These improvements are cost-effective and can provide an ROI of 40-50%.
8. Home Staging:
Finally, invest in professional home staging to showcase your property's best features and create an appealing ambiance. Staged homes tend to sell faster and at higher prices, with an average ROI of 200-300%.
While this is a general guide, please remember that not all homes or situations are the same. Your neighborhood, price level, competition, timing, etc. will all impact what you should or shouldn’t fix up around the house to maximize profit.
So, give me a call when you’re thinking about selling so we can walk through and come up with the best strategy, or if you’d just like to know what your home is worth in today’s market!
CalBRE# 02008887
GUIDE Real Estate: CalDRE# 01976964
All Rights Reserved | Silicon East Real Estate | Privacy Policy
Real Estate Web Design by Bullsai