Best ROI home improvements
As a Realtor, I frequently get questions from homeowners thinking of selling within the next 5 years and wanting to know what they should do to get the most out of their home. The following home improvement projects are a summary of Remodeling Magazine’s 2022 Cost vs. Value Report to give you an idea of what to do to get the most out of your investment. I’ve rounded the “recoup” percentages to make it easier, but for the most accurate information, see the report in the above link.
- Garage door replacement
- Cost: $4,127
- Resale: $3,803
- Recoup: 92%
- Manufactured stone veneer
- Cost: $11,565
- Resale: $10,771
- Recoup: 93%
- Minor kitchen remodel (midrange)
- Cost: $29,088
- Resale: $22,944
- Recoup: 79%
- Deck addition (composite)
- Cost: $26,197
- Resale: $17,323
- Recoup: 72%
- Siding replacement (fiber-cement)
- Cost: $22,444
- Resale: $19,013
- Recoup: 84.7%
- Grand Entrance (fiberglass)
- Cost: $10,892
- Resale: $7,481
- Recoup: 92%
- Window replacement (vinyl)
- Cost: $21,212
- Resale: $14,190
- Recoup: 71%
- Bathroom Remodel (midrange)
- Cost: $27,330
- Resale: $18,316
- Recoup: 67%
Curb appeal is an extremely important factor:
Most people decide before stepping into the home if they like it or not. Don’t feel obligated to spend a lot of money to make your home more appealing to buyers, but do consider projects that will give you the greatest return on your investment (ROI).
Painting your home is the very best, but if you can’t paint the entire home, try giving your home a pop of color by painting the front door. Research the latest trend on colors or go to 2022 Colors of the Year (jodyhallrealestate.com) to find this year’s top colors.
New interior paint
All resale homes have natural wear and tear. A few minor imperfections on the walls or nail holes are not particularly noticeable in marketing photos and virtual tours. But a new coat of paint will give you a great ROI. This gives your home a fresh and updated look for buyers. A 2020 Zillow Group Report states that 35% of sellers paint their home’s interior before selling.
- A neutral tone on the walls with white trim is your best choice.
- Read this Zillow 2021 Paint Color Analysis They found that homes with light blue bathrooms sell for a $2,793 premium.
- A Zillow paint study also found white is the best color for kitchens, while gray is well-suited to living rooms. This study also reports dark blue bedrooms appealed best to buyers.
Smart home technology
Zillow Group Report (2020), states 41% of Generation Z buyers and 47% of millennials rate smart home technology as highly important in their home search. This includes, but is not limited to:
- Smart thermostats which are relatively easy to install.
- Smart lighting that can be controlled through your smart phone.
- Home security systems, also controlled through your smart phone.
Lighting upgrades
If your home doesn’t have a lot of natural light, it is imperative that you find a solution to this aberrant issue. Your home will look larger and more inviting with better lighting. You can either add new fixtures or upgrade your bulbs. The last option would be to add lamps or other standalone options.
Flooring
Most sellers don’t go to the expense or effort of replacing floors. You basically have to move-out in order to have the floors replaced. Even a deep cleaning takes quite a bit of effort. But if you have the option of doing this, you will see a great ROI. Mostly, this is due to the fact that it’s expensive and buyers are frequently using all their money to purchase the home. The price for floor replacements varies so greatly that a recoup number can’t be given.
Items you might want to avoid:
Hot tubs
Some buyers love a home with a hot tub or jacuzzi, but many others see it as a safety issue or a huge maintenance burden.
Luxury upgrades
Depending on your real estate market and neighborhood, high-end touches such as professional-grade appliances, expensive landscaping, additional insulation and low VOC paint may not be something buyers are willing to pay extra for.
Feeling overwhelmed by all the questions? Don’t worry – that’s totally normal. There are no hard rules when it comes to remodeling, but there are a lot of options and it’s easy to get overwhelmed in the decision-making process. And I’m here to help! Give me a call anytime and we can discuss your project.
Looking to buy? Check your buying power: https://mtgpro.co/dr/c/4wmhu