Improving your home through renovations is an excellent, and sometimes necessary, way to make your house feel like home. Choosing to add a master suite addition instead of rebuilding the bathroom usually comes down to personal preference. However, the game changes when you’re planning to sell your home. Saving money on renovation work and controlling the cost of selling becomes crucial to getting the most out of your investment.
Much talk centers around a seller’s return on investment, and the ROI percentages vary depending on who’s doing the estimating. Some home improvement projects produce excellent ROI values, while some are just ways to spend money. The best investments when getting your home on the market provide strong returns along with big-impact selling points.
Don’t Put on an Addition
A good rule of thumb when searching for high ROI values is to avoid big-ticket reconstruction projects. The cost of home additions or major remodels is almost never worth it in dollars in the end. With ROIs averaging around 45% for a master suite addition, save the project for your forever home. Additions and major remodeling projects are excellent for improving the comfort and utility of a house but aren’t great at producing monetary returns.
Do Paint the Walls
Instead of spending loads of money and months of work moving walls and building a home addition, grab a paintbrush. Painting is the least expensive and most effective way to make a good impression. Repairing holes in the walls and painting the interior with neutral colors doesn’t add a lot of monetary value, but it doesn’t cost much either. Expect ROI values of over 105% for interior painting and 80% for the exterior.
Don’t Reconstruct the Foyer
Similar to other big-ticket remodels, some small remodels don’t fare well on ROI value either. Specialty remodels such as creating a mudroom or adding a grand foyer may look nice to some, but turn some buyers off. Many buyers have visions of what an entryway should be, and it’s hard to guess what they’re thinking. Mudrooms and entry remodels will return less than 60% of your investment.
Do Replace the Front Door
On the other hand, the entrances to your home can be significantly enhanced by replacing the doors or windows. Garage door replacement can fetch returns of 95% of the cost at selling time. Window replacement ROI often depends on the climate in your location. Cold weather areas see greater returns of up to 70%, while moderate temperature locales realize less return. Sellers with new front doors can see returns of 80% or more. If you have the time and patience to strip and refinish an older, but solid, front door, you could do even better.
Don’t Remodel the Kitchen
As fantastic and functional as a perfectly outfitted chef’s kitchen can be, remodeling one with ROI in mind comes up a few ingredients short. Due to the necessity of moving mechanical systems during remodeling, kitchen renovations are pricey. Worse, your return on investment could be as low as 55%.
Do Update Fixtures
If your kitchen needs help before selling, focus on the little details. Cheap renovations often go a long way toward increasing your home’s value without breaking the bank. Instead of remodeling a worn-out kitchen, spend no more than $350 to replace the faucet and a few hundred to replace the lights. Your best bet is to look for relatively inexpensive, but attractive, items while avoiding extravagance.
Don’t Build Extra Storage Spaces
Closet space and storage areas are nice to have. The trouble with spending money on renovations to increase storage spaces to gain a return is that everyone, including your potential buyer, has a different idea of what storage should look like and how it needs to function.
Do Choose Double Duty Storage Options
Install a Murphy Bed that incorporates storage elements into the design. This allows your rooms to shine as guest rooms with extra storage, or even home offices with surprise hosting potential.
Don’t Install Major Landscaping Features
Outdoor kitchens, ornate gazebos, extravagant water features, fountains and putting greens are all on the “no” list when it comes to ROI. Your current landscaping may need a little refresh, but that’s where it should stop to get the most bang for your buck.
Do Focus on Curb Appeal Instead
If you’ve already replaced the garage door and added a stone veneer, you’re nearly done. Before the first day on the market, mow the lawn, power wash the walkways and trim the hedges. Make sure that you’ve had significant cracks in the concrete repaired.
To really make an impression with very little investment, consider hiring a reputable lawn care service to get your yard looking its best. Returns of 80% and more happen when sellers focus on curb appeal over major landscaping projects.
