Which Remodels Offer the Best Return When Selling a Home?

By Richard Warner

I have been an investor and landlord for 5 years. When I got my official real estate license, I started as a First Time Homebuyer Specialist and have since received specialization certifications in Luxury Homes, Probate, and Divorce.

How do I get the most bang for my buck when it comes to home improvements? Spring is a time when flowers bloom and home sales peak, but it’s also a time when we can start our own home improvement projects. But, for those who are interested in selling this spring, what kind of home improvement projects will give them the biggest return on their investment?

Today, I’ll go over what projects to avoid, what repairs to make, and how to select a good contractor to do the work.

1. Upgrades to avoid. A great way to increase the value of your home is through upgrades, but not all upgrades are worth your time and money. Here are some that you should steer clear of:

• Unfinished projects. A half-finished bathroom remodel can be a turn-off for potential buyers. I recommend focusing on completing necessary repairs before listing your home.
• Overly personalized touches. Unique designs or bold paint color choices limit the appeal of your home. Stick to neutral tones and classic styles to attract a broader range of buyers.
• Unpermitted work. Do not attempt to do electrical or plumbing work without permits for they can be a hazard for you, and can lead to problems for the buyers, as well as financing delays. It would be better to leave specialized repairs to licensed professionals.

2. Upgrades to make. Now, let’s go over some things that you can do to increase your ROI when making home improvements.

• Garage door replacement. As they say, first impressions matter. Getting a new garage door can instantly enhance your home’s curb appeal. It is often a noticeable feature when you’re looking at the home from the curb. Plus, it’s always hit during the inspection.
• Landscaping. Simple landscaping improvements like trimming bushes and adding flowers can make a big difference in how buyers see your property. It doesn’t have to be expensive, but just make sure it’s clean and well-maintained.
• Fresh paint. Neutral paint jobs for walls and cabinets can modernize your space and make it feel more open and inviting.
• Essential repair. Address any leaky faucets, cracked windows, or damaged appliances. These repairs are important for passing buyer inspection and ensuring buyer confidence.
• Cost energy efficient upgrades. If you want your buyers to save a bit on utility bills, you can install energy-efficient windows. There are times that lenders even require this upgrade for certain loan types.

3. Find the right contractor. Picking the right contractor can help you manage costs. You also want the job done right the first time. I suggest that you ask for their work samples and request to see any licenses or certifications.

These improvements not only make your home more attractive to potential buyers but also have a track record of providing a solid return on investment. Think about the impact of each improvement on your home’s appeal and value. Remember, strategic investments in your home can make a significant difference in its sale price.

Ready to take the next step in maximizing your home’s value? As with anything related to real estate, the answers could change based on your location and comparable sales. I’m here to help. Contact me by phone or email for more personalized suggestions and any questions you might have. Let’s work together to get the best possible price for your home!