If you are planning on selling your house, you should definitely consider making some updates before you list it. Not only will it attract more buyers, but it will make your home more competitive on the market and hopefully make you some extra money when it comes time to sell. If you have a budget for your home updates, make sure you spend it where it counts. Some updates and improvements will increase your property value more than others, so be sure to do your research and talk to your agent to find out which ones will pay off the most when you put your home on the market. Here are some updates that are known to net you the biggest increase in property value and the highest return on your investment.
Increasing your home’s curb appeal is an easy way to catch a potential buyer’s attention. It will make the property look more attractive and put together. That is why landscaping is first on this list. Landscaping can increase your home’s curb appeal and that can translate into an increase in property value of 5.5 to 12.7 percent. Place smaller bushes and greenery in front of low windows and porches, and place larger plants or trees on the corners of your home. This will frame your home and catch peoples’ eyes from the street. Try adding pops of colors or mixing heights of the plants to create a dramatic effect. Also, a charming focal point like a walkway can add major value to your property.
In many homes, the kitchen is the hub of the house and the center of activity. By updating your kitchen, even if it is a minor remodel, you could get back 80.5 percent of the money you spend when it is time to sell. For about $15,000, you can install new countertops and floors, reface your cabinets, install a new sink, redo the lighting, and add new fixtures and a range. Buyers are looking for bigger and more updated kitchens than what they already have, so spending a chunk of your budget in the kitchen is worth it and just may seal the deal when the time comes.
Similar to the kitchen, bathroom remodels are another update that buyers like to see already done. Although it can be pricey, you will recoup a large percentage of what you spend when you sell. It costs about $10,500 to replace the tub, tile surround, sink, toilet, floor, vanity, and fixtures. Other (and less expensive) updates you can make are adding fresh paint to all the walls, reglazing your bathtub, and replacing your old shower doors. Of course, the total amount spent may vary depending on the updates and quality of the features, but focusing your money on bathroom improvements is definitely worth it.
A finished basement will recoup about 70 percent of its cost at sale. You could even get more back if basements are uncommon in your area. Updating your basement will add more space and function to your house. It can serve as a guest bedroom, a family room, a playroom for the kids, or a place to entertain. When finishing a basement, a coat of fresh paint can go a long way, but also, do not forget to always fix flooding problems first.
Going back to curb appeal, adding a deck, patio, or porch will recoup you an average of about 75 percent of the cost of installment. This number may vary, especially depending on where you live. But adding outdoor seating, attractive railings, and decorative planters will catch buyers’ attention and will make your home feel more charming and welcoming.
Giving your home a “facelift” is a great way to add value. These are smaller, usually cheaper, improvements to the outside of your home. One example would be to replace your garage door. For a two-car garage, the average door replacement costs about $3,500. This is an opportunity for you to make your house unique and stand out from the others. You can also replace your outdated windows with new ones. This will attract buyers and can get you back more than 70 percent of what you spent at resale.
Replacing your front door will not only boost curb appeal, but can enhance your home’s security. This update would cost around $1,800.
You could have the nicest house on the block but if the siding is old and worn out, your house can look dilapidated. Some new siding will help give your home the facelift it needs.
Knowing what updates buyers are looking for in your neighborhood is important and will help you decide where to put a large chunk of your budget. See what your competitors are offering and make your home unique. With careful planning and a little luck, you could end up getting much more for your house at resale than you had hoped.
Want to see how much your home could sell for? Check out our website to see what your property is worth in today’s market.
For more tips and information, read American Home Shield’s article and HGTV’s article on more home updates that pay off.