In today’s market homes are selling more quickly and for more than they have been in the past. If you are planning to sell in the future and want to see your home for more, then partaking in a few home improvement projects may be beneficial. But, there is a fine line between projects that will increase your return on investment or those that will ultimately end up losing you money. To ensure you make the right choice about what improvements you want to make to your home, read what our experts have to say.
Add value with a basement
One of the most effective home improvement projects to make your home sell quickly and for more is to finish your basement. While it can be a costly exercise, you are adding heated square footage to your property, which not only adds to its value but adds to the living space, making it more desirable to a wider audience.
Finishing a basement costs an average of $15 per square foot, with a general range of between $7 – $23 per square foot depending upon the quality and type of materials you use and, of course, your contractor’s rate. The project will likely involve drywalling, insulation, adding flooring, and electrical and paintwork at the least, but it will certainly improve the desirability of your home and you will likely recoup at least 70%, or more, of the costs when you sell.
Basements are not possible in homes built along wetlands or swamps, though, as the ground holds far too much water which could flood your home if it leaks through. It’s always a good idea to check your property’s eligibility for any home improvements before planning further, including any permits that may be required.
Obviously, if you have lavish plans for your space, the costs can rise, but if you are finishing it purely for sellability, then turning it into a functional living space can be done on a budget. It will still add a whole new element to your property and bump it up into another price bracket.
-Jonny Sommers, Houseace
Don’t ‘over renovate before selling
Sellers have one chance to impress future buyers, and first impressions are important. Every aspect of a home is tested for its quality to ensure that those who would consider buying it know they’re getting the best deal for their money. Choosing the best home improvements that add the most value are crucial, and with these house upgrades, you will be showing a home that features what buyers want without the risk of over-renovating.
When you are preparing to sell your home but not sure how much money to spend on sprucing it up, consult with a trusted real estate agent to get some feedback and ideas. Depending on how much time you can personally invest into doing the little things, figure out what can be done by experts to add value to your home. Keep in mind that many factors go into what home improvements should be done to increase your home’s value before the sale, including the time of year that you’re selling and location. Also, consider what the current market is like. Is it a buyers market or a seller’s market? What are homes like that are currently for sale in your neighborhood?
-Justin Havre, Justin Havre & Associates of RE/MAX First
Add energy-efficient windows
In today’s increasingly environment-conscious world, more and more buyers are shopping for properties with energy efficiency in mind. Drafty old, single-pane windows are fast becoming a thing of the past and certainly not attractive to potential buyers. According to Energy Star, adding energy-star rated windows can save as much as $500 in annual heating and cooling costs for residents.
It might not be the most affordable option that comes to mind, but the benefits could make it worth your while. As much as 60-90% of the costs of replacing your windows could be recouped when selling, and it could also earn you a green energy tax credit of 10%, so long as the upgrade is to energy star-rated windows. It is also possible that you could qualify for credits or incentives from your state or utility company, so it’s well worth doing your homework. You can learn more about available rebates and offers in your area by visiting the Energy Star Rebate Finder.
The great thing about this upgrade is that, through energy savings, rebates, and tax credits, you will eventually recoup your costs even if you don’t end up selling.
-Andrew Reichek , Rentkidz
Do a minor remodel
If major internal renovations are out of your budget, minor remodeling is an affordable option with great returns. The key to minor remodeling is to focus on overall aesthetics and not get bogged down in expensive details. For example, leaving cabinet boxes along and replacing only the cabinet fronts can dramatically improve a kitchen or bathroom, but for a fraction of the cost of a full replacement.
A minor remodeling of a 200 square foot kitchen, for example, priced at around $21,000 could see you recoup around 77% of your outlay at resale, whereas a major kitchen remodel with no expense spared might only recoup approximately 58% of the expense.
Likewise, around 64% of costs could be recouped following a midrange bathroom remodel of $21,000, compared to a full cost upscale overhaul, which would sit nearer 56%.
So, skip the heated towel racks and frameless glass enclosures and stick to a new ceramic floor tile, a replacement vanity, and some standard fixtures for the most effective renovation improvement investment when it comes to resale. It’s also a good idea to consider focusing on replacing whatever are the oldest or most worn items in the house, as opposed to any major area remodeling.
-Michael Epps, The Smart Consumer
Deal with structural issues
There is little worse for a property owner than discovering structural issues, especially if you are planning to sell. Whilst some cash buyers may be willing to overlook the need for structural repair and go ahead with their purchase, it will be heavily reflected in their offer.
If the structural defects are relatively minimal, such as asbestos or invasive weeds, then best to address them prior to listing your property to avoid their negative effect on your property’s desirability and value.
Signs of significant structural problems include leaning or bulging walls, uneven or springy floors, cracks in walls, bowed roofs, and even unpleasant smells caused by damp areas. It is very hard to diagnose structural issues, so bringing in a structural engineer or builder experienced in structural surveys is essential to determine the extent of the problem.
From there, the decision as to whether to rectify the issues is ultimately yours, but of course, the difficulty in selling as well as the significant drop in value may well be a motivating factor to do all you can to source the funds to carry out the structural repairs. Remortgaging may be necessary, but first, establish whether there are any grounds for an insurance claim to cover the costs.
-Corey Tyner, Sell Land Fast
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