Housing prices are at their near-highest. If you’re planning on putting yours up for sale, you probably want to get the most you can. While you might not want to put money into a home you’re leaving, making certain updates can increase your home’s value.
Likewise, specific upgrades will help you sell your house faster. No one wants to wait in limbo for renovations to be complete, but you also don’t want your home to sit on the market for longer than 45 days, when many realtors would suggest lowering your price.
Get Rid of the Deal Breakers
Before you start fantasizing about completing all those dream home projects, take a look at what potential buyers will worry about. They’re more likely to be scared off by a necessary, immediate repair than by an older kitchen that is clean and functional.
- Structural and Exterior Deal Breakers, like foundation cracks, roof leaks, missing shingles, rotting wood, broken gutters, and cracked window panes
- Plumbing and Mechanical Failures, such as leaky faucets, slow drains, running toilets, water heater issues, a faulty HVAC, and low water pressure
- Electrical Safety Issues, including non-functional outlets, broken GFCIs, flickering lights, and loose switch plates
- Visible Neglect, like damaged flooring, holes in drywall, sticking doors and windows, broken cabinet hinges, and burnt-out lightbulbs
- Yard and Safety Issues, such as broken fencing, cracked driveways and walkways, and dead trees and overhanging branches
Replacing an old but functional HVAC or refrigerator rarely increases the home’s value because buyers simply expect these things to work. But a broken one will certainly cause buyers to lower their offers. It’s not as exciting as a remodel, but focusing on maintenance over renovation gives your home its best first impression.
Walk around and through your home with a keen eye and a high-powered flashlight. Ask a friend or family member who doesn’t come over often to join you and help see the things that may have become normal to you.
Updates That Can Improve Your Home’s Value
You want to focus on projects that have a high return on investment. Upgrades can increase the property’s appraised market value more than what you spend on them. It’s like putting $10 into your home and getting back $20.
- Garage door replacement consistently ranks as one of the highest ROI projects (often recouping over 100%). It significantly changes the home’s face.
- Entry door replacement, like a new steel one, improves security, energy efficiency, and first impressions.
- A minor kitchen refresh is more affordable than a full gut job. Paint cabinets, replace old hardware (knobs/pulls), and update the faucet.
- Fresh paint makes the home look clean and well-maintained.
- Curb appeal and landscaping – simple fixes like fresh mulch, trimmed hedges, power-washed walkways, and a few colorful potted plants at the entrance.
- Manufactured stone veneer offers a high aesthetic return when it replaces vinyl siding on a portion of the home’s exterior.
- Smart home technology, like a smart thermostat, smart doorbell, or smart locks are relatively inexpensive but appeal to modern buyers.
- Small bathroom updates, including re-caulking the tub, replacing a dated vanity light, or installing a new mirror, can make the space feel modern without a full remodel.
- Flooring maintenance, such as refinishing original hardwoods or deep-cleaning carpets. If replacing, luxury vinyl plank (LVP) is often preferred for its durability and look.
While these upgrades will catch buyers’ eyes, it’s important to keep the time to update in mind. Painting, hardware replacement, and small installations may only take hours or a day to complete. But it might not be worth the wait if a contractor says it will take weeks to months to install new flooring or replace an exterior door.
Updates That Usually Won’t Improve Home Value (or have Low ROI)
It’s nice to believe that if you put effort and a good chunk of change into an improvement, you’ll get that money back and some appreciation. However, some upgrades are taste-specific and can actually turn off buyers.
- A major upscale kitchen remodel will only recoup a fraction of that cost, especially if you spend $80,000 on a kitchen in a $400,000 neighborhood.
- In-ground swimming pools are polarizing. Some buyers see them as a luxury, but many see them as a safety hazard and a high-maintenance expense.
- Luxury fixtures, like a $3,000 designer chandelier or a gold-plated faucet, rarely add more value than a high-quality $200 version.
- New wall-to-wall carpeting is often seen as something that will need to be replaced later. Modern buyers generally prefer hard surfaces.
- Sunrooms or additions usually cost far more than the value added per square foot.
- Garage-to-bedroom conversions don’t always add value like sellers think. Most buyers value the utility of a garage for parking and storage more than an extra poorly-insulated bedroom.
- Highly personalized decor, including custom wallpaper, bold paint colors, or unique built-ins can actually shrink your buyer pool.
You don’t want to make the mistake of wasting resources and time on something that does nothing or worse, lowers your home’s value.
Don’t Let Your Upgrades Go Unnoticed
While you can see all the changes you did, potential buyers probably won’t. As mentioned, they expect things to work and hope nothing they can’t see is broken. Likewise, an inspector usually only details what needs to be fixed or replaced, not which things are brand-new.
So, how do you make sure your investment is recognized? Let your buyers know about it! Your realtor can list certain hidden upgrades directly on the Zillow or Redfin listing or even leave a printout at the open house.
It’s important, though, that you only point out the things that buyers will welcome, and not the things they may question. For instance, noting that you patched a crack in the foundation may lead to worries about the foundation’s reliability. But experienced buyers would love to hear that the home comes with a brand-new water heater or that the roof was replaced last year.
By Admin –