It’s always nice to make renovations to improve your home. However, there’s a key distinction between whether you’re working on your home for yourself or a future buyer. If you’ve decided to make home improvements when selling, not all upgrades are created equal. The best home improvements for resell pay off in perceived home value by buyers!
It’s All About Return On Investment
Return on investment (ROI) is what percentage of your investment in a renovation is reflected in the price of your home afterward. For instance, suppose that the ROI of an upscale bathroom remodel is 60.2%. That means when you sell your house, the added value of your bathroom remodel to the original value will only be 60.2% of what you paid to have it done. (And as it turns out, this actually is the national average ROI on an upscale bathroom remodel.)
That being said, here are some of the best home improvements for resell that you can make. These will pay off and offer superior ROIs according to the Remodeling 2019 Cost vs. Value Report:
- Garage door replacement – this investment has a 97.5% ROI, and typically consists of removing the old garage door and replacing it with a new four-section garage door with various means of insulation and a lifetime warranty.
- Manufactured stone veneer – this investment has a 94.9% ROI, and consists of stripping down the bottom third of the exterior wall covering on the street-facing facade of a home and replacing it with manufactured stone veneers.
- Midrange minor kitchen remodel – this investment has an 80.5% ROI, and entails replacing appliances with newer models, replacing the fronts of cabinets and drawers, adding resilient floors and new laminate counters, amongst some other upgrades.
- Fiberglass grand entrance (locally, in St. Louis) – this investment has an 80.9% ROI and consists of replacing the front door with a much larger, more expensive and elegant entrance.
In addition, some investments really don’t tend to pan out. This isn’t to say that they are never worth the money, but if you are selling your home or you know you will eventually sell it, it’s best to steer clear of these, based on the same national average statistics sourced above:
- Upscale master suite addition – this investment has a dismal ROI of 50.4%, and consists of adding a large bathroom, fireplace, walk-in closet, and several other amenities to a master bedroom suite.
- Backyard patio – this investment has an ROI of 55.2% and includes constructing a patio on flat ground behind the home, with a stone veneer modular kitchen unit, all-weather furniture, lighting, gas and electrical connections, and more.
- Upscale bathroom addition – this investment has an ROI of 58.1% and entails adding a new master bath to the master bathroom, as well as a neo-angle shower, new sinks, new toilet, new ceramic flooring, and more.
Interior vs. Exterior
Typically, when you’re hoping to add some value to your home before selling, exterior home improvements tend to be more profitable. People prefer to spend money on upgrades that neighbors and passersby can see, so things such as a new front door, stone veneers, and even landscaping are going to pay off more than a major kitchen remodel or bathroom addition.
Location Matters, Too!
When considering making renovations to boost the value of your home, one of the best sources of information is your real estate agent. For instance, in San Francisco, the average wood deck addition has an ROI of 102.2% as opposed to the natural average ROI, 75.6%. There is even variance by area and neighborhood! If you are unsure about the value of a home improvement you are considering, talk to your real estate agent to get expertise about the area and what is working for other homeowners right now (it’s important to be current, since some trends that are profitable one year, aren’t the next).
You Can Rely on the Expertise of the Sarah Bernard Realty Team!
If you need expert opinion and advice on how to maximize the value of your home while selling, the Sarah Bernard Realty Team is well-researched, professional, and versatile! We excel in making the process of buying or selling homes uncomplicated and valuable to clients and have an advanced, well-thought out strategy on how to approach many real estate interactions. Schedule a consultation today!