As a homeowner, it’s easy to get in the mindset that improving only the aesthetics of your home. While installing a unique tile entryway or ripping out all of that old wallpaper will up the value of your home in some cases, the reality is these aesthetics only go so far. If you really want to perform home improvements that will increase the value of your home, and help you get a better return when you decide to sell, you need to think in terms of what is important or valuable to buyers. Beyond that, you need to focus on what buyers are looking for in your local community.
While it can be tough to determine all of these specifics, there are a few home renovation projects that bring in more dough than any others. So, if you are planning on selling your home soon and want to make sure that you get the most return on investment (ROI), consider these top five home improvements.
Functional Indoor Systems
While it’s more rewarding to actually see your money going to work by making cosmetic changes, those are some of the last considerations you need to make. The first thing you should focus on is upgrading all of your indoor systems including plumbing, heating, electrical, and sewer systems. If you wait for potential buyers to point out problems you’ll be paying more for the same repairs.
Determine which ones are out-of-date or in ill-repair, and start your home renovations here. Sure these repairs can be pricy, but you’ll get your money back and then some when you go to sell. Knowing that these systems have been upgraded or at least repaired recently, will give potential buyers peace of mind and will protect you from having anything negative come back on a home inspection.
Outdoor Replacements
Average ROI: 75%
Another place you can recoup a great deal of your expenses is outside. Before considering indoor remodeling projects, focus on the outside and work on the curb appeal of your home. Common places you’ll want to invest some money on include:
Garage door: 88% ROI
Siding: 80% ROI
Front door: 101% ROI
Outdoor Kitchens: 100-200% ROI depending on the weather (warmer areas get higher ROI)
Again, while these upgrades may seem pricey initially, you can expect to get an average return of 75% on these outdoor replacements. That alone is a worthwhile investment.
Extra Bedroom
Average ROI Attic Bedroom: 91.7%
Your three bedroom home was probably perfect for you when you were house shopping, but now that you are looking to list and trying to attract prospective buyers, you want to maximize space. A great way to entice buyers is to convert an existing space, such as the attic, into an extra bedroom.
A transformation like this may cost you just over $50,000, but if you stick with it and sell with an added room, you can expect to recoup 91.7% when you sell your home according to the latest Cost vs. Value report in the Pacific U.S.
Additional Bathrooms
Average ROI: 73.9%
While everyone was previously focused on the kitchen, in recent years, there has been a shift in focus on prioritizing extra bathrooms. A recent study showed that this single change could add up to 20% to a home’s valuefor an extra full bathroom. If you can’t install a whole new one, make sure your existing bathrooms are functional and beautiful. A nice bathroom space will pay for itself come selling time.
Kitchen Upgrades
Average ROI (Minor Remodel): 102.3%
Average ROI (Major Remodel): 81.1%
Okay, so kitchens haven’t completely fallen by the wayside. In fact, the kitchen is still the heart of the home for most families, so anything you can do to upgrade this space will help you increase your return. At the very least, give the space a facelift by painting, changing out flooring, and updating lighting and fixtures. But, if you really want to increase your home’s value, go for a complete kitchen overhaul that includes new cabinets, floors, appliances, and all the bells and whistles.
Upgrading your home takes some time, so you’ll likely still be living there as you complete the remodel. Be sure to protect your investments by having a home security system installed. NorthStar alarm reviews say you can get a good price and system with different electronic options available today.
This guest post was written by Brooke Chaplan, a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most her time hiking, biking and gardening. For more information contact Brooke via Twitter @BrookeChaplan.
