Best Home Improvement Projects Before Selling

Dec 08, 2018
Post By : Kathi Davis
- Selling Home

If you’re like most Americans, your home is probably your biggest investment. You want that investment to perform as well as possible, so if you think you may sell your home sometime soon, it makes sense to do as much as you can to boost its value. Depending upon your situation, this can mean doing some home renovations so your house becomes more attractive to potential buyers.

However, you may think spending a lot of money will ensure your chances of selling, and, more importantly, allows you to tack on a few zeroes to the end of your sales price? Wrong. Your property is primarily evaluated based on the other houses in the area or condos in your building.

But, while upgrades can boost your home price and help your home sell faster, not all renovations have an equal impact on what your home is worth. To ensure you’re making renovations that will actually pay off, read on to find out some upgrades that give you the most bang for your buck. According to popular belief, a spotless kitchen and washroom are your most convincing arguments to help you sell your property, and it’s completely true! The brighter these rooms shine, the brighter your chances of making the sale.

But… any homeowner who’s gone through a renovation project knows that it’s full of hidden surprises, delays, and expenses. The bigger the project, the more delays, and surprises will strain your budget, your patience, and of course, your profit.

What projects have the biggest payoff? Afresh coat of paint is by far your easiest, cheapest and quickest option. It will undoubtedly give you the most bang for your buck.

For bigger projects, renovating your bathroom will result in 50% to 100% of a return, while your kitchen has the potential to net 75% to 100% of your investment.

For $15,000 to $25,000, you’ll get a modern kitchen with new stainless steel appliances. With a budget of $7,000 to$10,000, your bathroom will measure up to any glitzy spa. You can also limit yourself to new granite, Corian or quartz counters in the kitchen or bathroom, or you could change the sinks, bath, tiles, backsplash or cupboards as well.

Switching out your carpets for wooden or bamboo floors will also draw in buyers. For a budget of $4 to $8 per square foot (double that to account for labor), you’ll get a return of around 75% on your investment when selling. Some floating floors, such as Pergo look just as nice as hardwood flooring, are much less expensive and easier to install.

If your budget is limited, simply change the kitchen and bathroom tiles and, if possible, counters and sinks. Even simply changing the taps and faucets goes a long way.

Not all upgrades are equal

What are the least profitable projects? Other renovations that aren’t as profitable include replacing doors and windows, finishing the basement, replacing the heating system, installing a fireplace or heat pump, etc. These projects or additions will only yield a 50%to 75% return on your investment. Landscaping or paving the driveway yield seven less return (25% to 50%).

But be careful though; your renovations have to be in line with the rest of the neighborhood. Adding high-end lighting, top of the line appliances, or outrageously expensive materials will only tear into your profits. No need to give the client more than what he’s asking for.

Sometimes, certain renovations are necessary. Even if a new roof won’t increase your resale value, unsightly shingles can send buyers running. Adding new insulation or replacing the vapor barrier in the crawl space is unavoidable, even if the buyer won’t notice it immediately. However, you can be sure the building inspector they hire will!

Important Takeaways

Hire a building inspector who can identify the work needed to avoid problems or a change of heart from potential buyers (once they have their own inspection performed).
Carefully plan out how you will finance your renovations. See if you are eligible for any tax credits for green or energy efficient technology.
Set your priorities, draw up a budget, discuss your project with your mortgage broker, get quotes from at least two contractors, and plan a surplus (up to 20%of the original costs); forget last-minute changes (nicer tiles, another type of faucet, etc.)
Keep all your renovation invoices, even those that go back several years. They will prove to evaluators and buyers that your renovations were done with the materials you claim, at the cost you claim. Furthermore, many of your purchases come with long-term warranties (heat pump, roof, foundation, etc.).
Patios, skylights, and spas are practically worthless.
Repainting ledges, balconies, fences, façade, and even adjusting the landscape can pay off big in relation to the time and money invested.
Be sure to let your insurance company know. Your coverage and premiums will either increase or decrease.

Your Trusted Agent

Your real estate agent is the best source of information about the local community and real estate topics. Give The Kathi Davis a call today at 425.890.5638 to learn more about local East Side Seattle Region areas, discuss selling a house, or tour available homes for sale.