For those considering selling a home it’s important to know that 64% of what you pay into remodeling or renovating will be recouped during a sale. Best of all, not all home renovations require extensive time, labor or money. Although you may be dreaming of creating the perfect chef’s kitchen or a spa-like master bathroom for the new owners, by reviewing a few statistics you’ll see that sometimes the little things count more than the bigger projects.
Curb Appeal
The first thing buyers see when they drive up to a house is the front yard and exterior facade. If they can’t even see the house from the street it may be time to spruce up the yard and make a few changes to the exterior of the home. Knowing that 75% of what’s invested in the project will be recouped during a sale could help inspire and motivate sellers. Remember that the goal is to get buyers through the front door so they can evaluate the home themselves.
For some home exterior projects painting will suffice, but consider upgrading to vinyl siding with a fade-resistant finish. The return will average about 92.8% and will result in a quicker sale. Additionally, warranties on this type of siding is often lifetime and transferable to new owners when the home is sold. Another simple curb appeal change is replacing the front door with a quality product. Steel doors have become more popular than ever lately and they generate the biggest return.
It’s also important not to forget the simple things like gutters, drains and roofing. If a roof leaks or a basement floods every time it rains, a home won’t sell. Additionally, upgrading windows for energy efficiency is also important. It doesn’t matter how great everything else looks if the basics aren’t upgraded and/or repaired as well.
Interior Upgrades
One of the simplest and least expensive home improvements that will reap huge rewards is adding attic insulation. For every $100 you spend in an attic space a return of 117% on average can be expected. The logical question is why. It all has to do with the buyers’ perceptions of energy efficiency. That’s also why replacing older appliances with newer energy efficient models is so important.
Bathrooms and kitchens are important but require a much larger investment to get off the ground. If you’re looking for lower cost improvements, consider upgrading the look of a fireplace by adding a manufactured stone veneer or spend your budget on painting the home’s interior in neutral colors to freshen its look.
Backyard Improvements
The backyard can sell a home especially to families. One option is to add a swimming pool but the return on investment directly relates to where the home is located and the quality of workmanship. In the Midwest, for instance, few people have pools and installing one can actually decrease the overall value of the home. In hotter, more tropical environments, however, the opposite is true. For example, inground pools in Naples, Florida, or even in Athens, Georgia could add a significant amount of value to a home if done right.
Just as with other areas of the home, making a few small changes can pay off big. Things like adding outdoor lighting will generate a 50% return on investment, creating a deck returns an average of 73% and to generate energy efficiency outdoors, shade trees should be planted. Two of the biggest returns on investment are outdoor kitchens which have an average return on investment of 100-200% and fire pits that average 150%.
Some remodeling and renovation projects can increase a home’s overall value while others cost more than you could ever get out of it. If you plan to stay in the home then you need to do whatever makes you comfortable and happy. However, if you plan to sell the trick is to do the minimal number of projects that will ensure you get the most bang for your buck.
If you enjoy the content at iBankCoin, please follow us on Twitter
