If you know you’re not in your “forever home,” you likely put a lot of thought into planning your home improvement projects. And if you’re contemplating selling your house soon, you’re likely brainstorming all of the things you can do to maximize the profit on your sale. Like many other people, you want to make sure that you get the most bang for your buck when it comes to home improvements.
The Bottom Line-
Before you start tackling renovations, additions, and remodeling, it helps to get a baseline to gauge how much you should invest. Do you know your home’s current market value? If the answer’s no, you want to use one of the many online home value estimator tools or work with a local agent to find out what your property is currently worth. If you work with an agent, you can also get an informed, professional opinion of what home improvement projects will not only attract potential buyers but also provide a return on your investment.
Let’s take a look at those home improvement projects that provide the most value.
If you’re itching for a new kitchen or bathroom, you’ll be disappointed to know that even minor kitchen remodels will not yield a full return on your investment. So, go ahead and tackle those areas if you’re planning on being in your home for a few years and want to enjoy an updated look, but don’t hang your hat on a solid return.
By and far, those improvements done to the outside of your home will realize a return on your investment and get people in the door when you go to sell. Let’s take a look at some outdoor projects that will protect your investment.
The places where you want to expend your efforts — and invest your hard-earned cash — are those places that make a first impression with prospective buyers. If your home’s exterior needs a fresh coat of paint or a modern color update, invest in getting your siding repainted. While your home may not be the newest in the neighborhood, a facelift is just the thing to get it noticed in a great way.
It’s All in the Details
Other areas of note include your roof and your gutters. If you’ve not been the best about maintaining your gutters, clearing your gutters and replacing or securing any loose pieces should be a priority. Again, your house doesn’t have to be new, it just needs to look like it. The same holds true with your roof. While a new roof may not be budget-friendly, you should invest in replacing and securing any loose or missing shingles.
Take a look at your sidewalks, driveway, and entryways. Do you have any loose bricks? Is the cement cracked or uneven? If you answered “yes,” you need to tackle those walkways and your driveway. Again, the goal here is to make your home look as inviting — and well-maintained — as possible, and loose bricks or cracked cement won’t cut it.
Perhaps the best investment you can make — and one with the highest return of all — is to care for your lawn. Buyers love homes with beautiful, full, green lawns, so take the time to have your lawn seeded or have sod laid to create a thick, carpeted look to your lawn. You won’t regret it.
With so many variables in play, the best investments you can make in your home are those that will draw in prospective buyers when the time comes. A beautiful exterior draws people in to see the interior, and stepping up your home’s curb appeal will boost your return on investment at settlement. However, there are a few interior upgrades that will get you more bang for your buck, let’s take a look.
According to Homelight.com High income buyers ($150,000+ a year) like finished basements. Finished basements can bring in more than $40,000 in additional profit and add to the total square footage of a home.
Finishing a basement costs an average of $6,500-$15,000 and primarily consists of drywall, flooring, and paint. With the potential for a 69% return on investment, it may be something to consider before putting your home on the market.
The National Association of Realtors says refinishing hardwood floors recovers 100% of the cost at resale. That said, the ROI on updated flooring depends on current condition.
If your floors are in decent condition, refinishing them is a great, cheap way to bring in extra profit when selling.
Open Floor Plan
A spacious layout is at the top of many buyer’s wish lists and can be done for relatively low costs. An open floor plan brings in more natural light, makes the space seem larger, and helps buyers imagine how they would fill the space if it were their own.
Some walls can be knocked down quickly, while others may be structural and require alternative support to be installed. Be sure to consult with a contractor before tearing down walls.
National Association of Realtors