So, you’re getting ready to put your home on the market and have some money set aside to make a few improvements to increase the asking price. The hard part is deciding which renovations will do that for you, and which renovations will work against you. Here is a list of five popular renovations that have the potential to do both.
I Three out of the last four years, this renovation has ranked first on Remodel Magazine’s Cost Vs Value list. (In 2020 it ranked second.) Remodel’s list showed a national average of 96.3% cost recouped on this renovation across those four years.
Replacing a dated or damaged garage door with an upgraded version not only improves the curb appeal of your home but can also increase energy efficiency, which is a huge draw for potential buyers. An “upgraded” version is made of higher quality materials like wood composites or steel and higher-rated insulation. The upgraded version will cost more than a standard garage door but, again, will increase the amount of return on your investment.
Where you can go wrong with this renovation is by not considering all aspects before making your purchase. Considerations for selecting a new garage door include:
Proper landscaping will enhance the overall attractiveness of your home and property, thus increasing curb appeal and drawing in potential buyers. The landscaping should catch the eye of someone driving by but, should be kept simple and easy to maintain. Any yard art should be easy to remove as well since a new owner will want to add their personalization.
Making sure outdoor areas are attractive, accessible and, functional is another fairly quick renovation that historically shows a high return on investment. If you already have a deck, pergola, patio or, other outdoor space in use it may just need pressure washing, a deep cleaning or, new cushions for outdoor furniture to increase the appeal. If not, a wood deck is a good investment as the return on investment is high. Brick or stone patios also rank high on cost vs value listings.
Where you can wrong is with bad design choices and putting too much money into these renovations. Decks, patios, pergolas and, other outdoor areas should be sized appropriately for your property, but also for the neighborhood. Landscaping around these areas should complement them and should be kept simple for ease of maintenance. These outdoor areas can add to the appeal and value of your home or, can look busy and crowded and, can detract from the value.
Updating your interior fixtures and furnishings is a relatively simple and inexpensive renovation that can make a good impression on a potential buyer. Change out doorknobs, drawer handles and pulls, and the associated hardware. Replace your current, outdated light fixtures with newer ones. Repaint walls and baseboards and perhaps change out your curtains for custom blinds.
Where you can go wrong is color and style choices. Opt for paint colors that are modern but not overly bright or bold. Extravagant or highly unusual light fixtures, doorknobs and, other hardware may only appeal to a very small number of potential buyers and limit your offers. When updating interior fixtures and furnishings, less is usually better.
I In addition to saving money on energy costs, energy-efficient appliances materials reduce the environmental impact of your home. This alone is a highly sought-after characteristic for many of today’s home buyers.
This is a renovation that may come with a slightly higher price tag than some of the previous ones discussed, but the value also is elevated. Installing a smart thermostat, replacing doors and windows with better-insulated ones, adding soft-fill insulation to an attic and, replacing old appliances with more energy-efficient ones are great ways to add value to your home.
Where you can go wrong is by over-spending and trying to replace everything at once. It is also important to do your research or, get professional advice from a company like OC Homes about which of those improvements is appropriate for your particular home. Decide on a budget for this renovation, keeping in mind average home prices for comparable homes in your area. There is a point where the increased amount of value outprices your home for the area both decreasing your profit margin and your chances of selling.
More and more homeowners are incorporating smart devices into their homes. This also means more and more homeowners are looking for these features in a new home purchase. Smart systems and devices like doorbell cameras, and smoke and carbon monoxide detectors bring security to the next level – alerting you even when you are not at home.
Smart lights and thermostats increase energy efficiency and can be controlled remotely – a handy feature if you are not at home when severe weather moves in.
Where you can go wrong is in trying to add too much and ending up outpricing your home for the area. While many smart-home products advertise do-it-yourself installation, unless you really know what you are doing, you could end up creating even more expense – like the need for a qualified professional to undo what you attempted and, then fix it properly.
IWhen preparing to sell your home, make sure you know the market for your area before you decide on any renovations. If you add more value than a buyer is willing to pay for a comparable home in the same area, you will end up with a far lower return on investment. The same renovation that may increase value for one property can easily do the opposite for another.