Our homes are sour castles, and from time to time, they need upgrades and improvements, whether it’s for comfortable living or sale. When it comes to personal enjoyment, any upgrade can feel “worth it” because it brings you happiness. But if your goal is to increase your home’s resale value, you’ll want to be more strategic.
Realtors, home appraisal experts, and contractors all agree that certain upgrades provide little to no return on investment (ROI) when it’s time to sell. If you are considering selling your home and looking for upgrades to raise the price, you will likely find this article interesting.
Before we begin, we have to note that the upgrades on this list may not apply to every home. Factors like your neighborhood, local market trends, and regional preferences all play a role in determining what home improvements are “worth it.” That’s why it’s important to evaluate the ROI for your specific property before making any upgrades.
How to Determine If an Upgrade Is Worth It?
Here is a list of factors to consider, upgrades to avoid, and the best ROI upgrades:
Do Your Research
Research the value of homes in your neighborhood. Look at how many bedrooms they have, the number of parking spaces or garages, and any standout features like updated kitchens or outdoor spaces. Pay attention to the condition of these homes – do they need repairs? This will give you a better image of where you stand and how much certain features increase the sale price.
Be Aware of Your Surroundings
This sounds like generic advice from some survivalist guide, but you will need it to survive the real estate jungle. The main point is – do not try to make your home the most expensive in the neighborhood. It will cost you a lot, and it won’t bring in the returns you wanted and planned for.
If your home is situated in a neighborhood where the average home value is $200,000, a 40K kitchen renovation project won’t increase its value by that much. Maybe it could add 5% or 10% over the average value, but 20% is not very likely.
Common Home Upgrades That Rarely Pay Off
Finished and Furnished Basements
The basement is one of the most commonly upgraded areas. However, it’s only a dream for first-timers. They may look great as an idea, but the reality is that they are without or with limited natural light and ventilation, often damp and always noisy. However, this doesn’t mean you shouldn’t spruce it up – but cleaning and a fresh coat of paint is usually enough. Do not overclog it with furniture and your ideas – let the buyers imagine what they could do with it.
Over-the-top Kitchens and Bathrooms
These are the most important areas of the home when it comes to sale, and they deserve attention. However, be careful of the cost. Do not go overboard and spend more money on your kitchen and bathroom than they will bring in.
Swimming Pools
Despite their appeal, the sad truth is that pools are high-maintenance and safety-issue features that are rarely used. Unless you are certain it will win over your target audience, its best to stay clear of this investment.
Home Offices
While the rise of remote work has increased the demand for home offices, they might not be a universal selling point. Consider the size of your home, the layout, and the overall appeal of dedicated workspaces in your market.
Upgrades with High ROI
Instead of splurging on potentially risky upgrades, focus on strategic improvements that offer a better return on investment. Here is a list of proven high-ROI upgrades:
Fix the Flaws
Before starting with upgrades to certain parts of your home, fix the flaws in the entire house. Even if they seem minor, they can have a big impact, especially when they pile up. Leaking faucets, old AC, broken door handles, etc.. Check everything.
First Impressions Matter
Curb appeal is crucial. If your driveway is in bad shape, call an asphalt paving contractor for repairs or a new coat. If the driveway is new – powerwash it. Address the bald patches and yellow grass on your lawn if you have any. Remove any sick-looking tree or a bush. Your front door must work perfectly – oil the hinges and check the door handle and the keylock.
Painting and Cleaning
Professionals agree that the highest ROI upgrade is a new coat of paint (inside and out). It’s relatively affordable and increases the value of your home considerably. If the outside paint is new, then it would be beneficial to powerwash it and make it shine. Another thing to do is clean the house thoroughly, inside and out.
Address Objections Even Before They Appear
For instance, if you live on a busy street, double- or triple-glazed windows are a great answer when a potential buyer asks you about the noise.
Ready to Make That Sale?
We hope you have concentrated on making the important, profit-bringing changes. However, one new problem might appear. After fixing and upgrading your home, you might not want to sell it anymore.
