Home Renovations that May Help (or Hinder) Resale Value

 

Want to get the best bang for your buck when deciding which home projects and renovations will be worth the pay off when it’s time to sell? Choose your projects carefully. Not every home improvement project will boost value – or even get you anywhere near the money you’ve put into it. Some “improvements” may even hinder resale. If you’re looking for a good return on investment (ROI), here’s a breakdown of the most popular renovations and their probable effect on resale value.

 

 

Most everyone wants an updated kitchen. Dated decor and older, clearly much-used appliances will turn off prospective buyers. But don’t overdo it. Stick to the basics for a safer return: updated backsplashes and lighting, freshly painted walls. If your kitchen cabinets are scuffed and scratched, a good paint job or fresh varnish and new hardware may suffice. New fixtures and appliances should be replaced if they are clearly dated. Granite and quartz countertops are popular as they don’t seem to ever go out of style.

 

Like kitchens, everyone wants an updated bathroom. A fresh coat of paint, updated faucets, a newer model toilet – you really can’t go wrong with these quick fixes. Other ways to make this private but very important room more desirable: adding storage space, improving lighting, upgrading tile, vanity, and countertops.

 

Lighting plays an important role in a home. Good light amplifies a room, creating a more spacious environment. It can even improve mood (think about how a lack of sunlight can lead to seasonal affective disorder). Conversely, dark, shadowy spaces can diminish a room – and your mood.

 

Also, you may be tempted to replace your dated light fixtures with on-trend lighting. That’s fine if you’ll be selling soon, but if too much time passes, on-trend becomes passé.

 

Basic landscaping, decks, patios – all are good investments. But you might want to pass on expensive water features and extensive, overly-manicured landscaping that might suggest too much upkeep.

 

Mechanical and Structural Home Improvements

You should tackle certain major projects IF they are currently problematic.

 

• HVAC
• Roof replacement
• Plumbing
• Foundation repairs
• New gutters and downspouts

 

There’s no question that fresh paint is a big draw for prospective buyers. Just make sure it looks professional and is done in neutral colors; this gives buyers a blank canvas that helps them envision the house in their own style.

 

Particularly if you still have carpet in your bathroom or dingy vinyl in the kitchen, new floors will add value to your home. Hardwood is classic and desirable, but engineered hardwood, laminate, luxury vinyl plank, and high-quality tile flooring are also good options.

 

Finished basements may not be factored into “livable square footage,” but they still tend to offer a great return. You can save money by sticking to mid-caliber materials since people do not expect high-end finishes in basement space.

 

Adding a bedroom to the basement is easier if this space already has two forms of egress (ways to exit the property). Make sure to also incorporate a closet.

 

Adding a bathroom to the basement is easier and cheaper if the builder included a rough-in for plumbing. Otherwise, you’ll incur substantial plumbing costs.

 

If you’ve ever watched a home improvement show, you’ve learned that popcorn ceilings must go. Also known as stippled or acoustic ceilings, these bumpy surfaces have become undesirable and it’s worth the elbow grease to smooth these out.

 

 

Choosing wallpaper is highly subjective and sets your personal décor style, which may match some buyers’ tastes, but certainly not all. Limiting your audience in this way is never wise. And everyone knows that removing wallpaper is a chore.

 

Continuing with the “highly subjective” theme, very personalized and/or quirky projects should be approached with caution – built-in aquariums, specialized hobby rooms, bold paint/patterns – all will limit your audience and your pool of prospective buyers.

 

Luxury lighting, bathrooms with all the bells and whistles, kitchens with extremely high-end appliances: people may appreciate these upgrades, but fancifying your home too much probably isn’t going to be worth the cost. Your beautiful Baccarat chandelier just might get replaced with a modern fixture with Edison bulbs.

 

For many prospective homebuyers, hot tubs and pools imply work. For others, they may even scream “danger.” Swimming pools tend to appeal to families with a certain age range of children. And while hot tubs will most likely be an appealing addition to a home that will be used as a short-term vacation rental, these additions are typically unlikely to yield a good ROI and will limit your prospective buyer base.

 

Be careful if you decide to turn a bedroom into another bathroom or huge closet, make your garage into a home gym, transform your finished basement family room into a wine cellar. As long as you are not rendering the original purpose of these rooms unrecognizable, you’re probably fine. But major modifications might not suit a buyer’s needs and turning them back to how they used to function can take time and money.

 

Spacious, stand-up showers have become very popular, but it’s wise to keep one bathtub somewhere in your house to accommodate families with children or people who like to lounge in a tub.

 

If you think you’ll be selling your house in the near future, it’s wise to consult with an expert before embarking on expensive home improvements. Not only can they tell you which projects should be done, they can give you a ballpark estimate of costs based on their experiences with other home sellers.

 

Reach out to one of our expert real estate agents to learn more about selling your home.