If you are looking to boost the value of your home before selling, there are certain home improvements that could make a huge difference. When choosing to renovate your home before selling, you need to think about the return on investment. There’s no point forking out a huge amount of money if it won’t change the final value of your home. Here we share the most impactful home improvements to increase the value of your property.
What to Consider Before Renovating Your Home
Before undergoing any home improvements, think about how much your house is currently worth and how much it could be worth with certain home improvements. Also consider how much it will cost to carry out these home improvements and whether or not the return on investment is worth it.
Remember, there are other factors which are out of your control which could affect your house price. For example, take a look at similar properties in your area and what they are selling for. If you undergo a huge home renovation that makes your home a lot more expensive than other properties in the area, you risk making your property unaffordable for many prospective buyers looking for homes in that neighborhood. Alternatively, if you can make any improvements which will bring the value of your home up to the average price in your area, it could be worth it.
If you are planning to undergo major home renovation projects, such as a new kitchen or bathroom, experts recommend budgeting between 10 and 20% of your home’s value to cover the cost of the renovation.
Think about what changes will still have value in the long term. With the housing market constantly fluctuating, only make home improvements that can stand the test of time – the value of your home may not be the same a few months or a year from now.
What Home Improvements Add the Most Value?
Certain home improvements have been shown to add more value than others. Here are some of the renovations which have been proven to increase home value the most:
Kitchens are known to be one of the most important rooms in the home. According to statistics, kitchen remodels lead to a 72% return on investment. That said, they will also set you back a fair bit. The average cost of a kitchen remodel can be between $25,000 and $40,000.
Minor kitchen remodels can be a good idea if you want to increase value without undergoing a huge renovation or spending too much money. On average, a minor kitchen remodel will cost about $15,000 with an average return on investment of 98.5%. Minor kitchen remodels can include updating appliances, refinishing existing cabinets, adding new hardware and applying a fresh coat of paint or gloss. All of these small changes could have a big impact on the overall value of your home.
Major kitchen remodels, on the other hand, will require a complete overhaul. If you are doing this, consider an open-plan design to maximize spaciousness. There are also certain on-trend kitchen features such as integrated storage drawers, wine-refrigerators and hidden outlets.
Replacing Your Windows
Putting new windows into your home will not only help it from an aesthetic point of view but also have a big impact on your home’s energy efficiency, which is a big selling point for prospective buyers. Windows cost anything from $200 to $1,300 each so it is not a cheap project. However, the ROI is around 68%. From a buyer perspective, better windows indicate a more efficient home and lower utility costs; this could mean that they are willing to pay more for the property as they know it will be cheaper to insulate their house in the long run.
Make Your Home a More Accessible Space
When making any improvements in your home, think about universal design principles so that you are creating a living space which is designed for people of all ages, sizes and abilities. This will expand your pool of prospective buyers and attract a larger audience. Features such as wider doorways, stepless entrances, side-doors and switching from a main-level tub to a shower could all make your home more accessible.
Upgrade Your Light Fixtures
One of the simplest home improvements on the list, lighting can make an enormous impact to your home and add a great deal of value. From adding well-placed lights in areas of darkness and switching to warmer tones, to choosing light fixtures that add a ‘wow’ factor in certain rooms there are lots of different changes you can make to the lighting in your home.
Garage Door Replacements
Replacing your garage doors is one of the most impactful home improvements when it comes to recovering the initial cost, with a return on investment of 94%. The job of installing a new garage door itself is relatively inexpensive, costing between $750 to $1,600. However, it can make a huge difference to your home’s value and massively increase your curb appeal.
Enhance Outdoor Living Space
Adding an outdoor living space, or amplifying an existing outdoor living space, can make a huge difference for prospective buyers. Whether you are working with a large or small budget, there are plenty of options for upgrading your outdoor space, be it expanding your porch, investing in your backyard, or focusing on your patio area. Having an outdoor space provides extra living space which is one of the key things that buyers are looking for when purchasing a home. Screened-in porch, backyard patios and outdoor entertainment areas are features which are still very popular.
Similar to kitchen remodels, a state-of-the-art bathroom can be one of the biggest selling points for prospective buyers. By updating your bathroom, you can expect an average return on investment of around 60%. However, it will depend on multiple factors. Bathroom remodels can cost anywhere from $6,200 to $15,200 depending on what you choose to include. Minor bathroom remodels, including replacing the shower head with a rain shower, new light fixtures and a new vanity, cost the least and have the highest return on investment.