When you are preparing your home for the market, you may want to make some renovations in order to net more money on your home sale. Which renovations get better returns than others?
Keep in mind that less is more. Large-scale jobs aren’t likely to return their full costs but there are investments worth doing in anticipation of an upcoming sale. Some renovations return 100% of their costs while others get less than half of the money back. Still, some renovations can improve your market position and the probability that your home will sell.
Lower cost projects tend to return greater value. For example, the national average cost for a steel front door replacement is $1,200. That is the least expensive project on the list and it also gets the highest return. In fact, you can expect a 101% return on investment. In 43 of 102 markets surveyed, new doors recoup more than 100% of their costs.
Other projects that get a good return on investment are mid-range garage door replacements or upscale garage door replacements, mid-range wood window replacements, and minor kitchen remodels. Notice a pattern here? With the exception of a kitchen remodel, these are all replacement projects.
In general, replacements cost less and provide a bigger payback than remodeling or adding square footage to a home. First impressions are very important to buyers, so replacing things that they will see right away, like the front door, garage door, or siding will help you net more money on your home sale. Manufactured veneer gets a 92% return on investment.
When it comes to remodels, though, kitchens will still get you the most bang for your buck. For example, a small, $20,000 remodel will get you a payback of 80%.
Just how much you recoup from home improvements depends on which updates you make and which region of the country you are in. Other factors to take into account include figuring out which updates are typical for your specific neighborhood and, of course, the quality of the work.
Check out this cost versus value report before you get into any renovations or remodels. We even have a professional stager on our staff who can tell you exactly which repairs will help your home sell for the most money.
If you have any questions, please don’t hesitate to reach out to us. We would be happy to help you!