Every home seller struggles with this question “Should I put money into my property before selling it?” The answer is “Yes.” However, it is important to know which repairs to focus on as some have little to no returns. For example, a wooden deck has a higher ROI than a new sunroom. Sellers looking to make small improvements and recoup their investment when selling should look into the following:
A steel front door costs approximately $1,238 but pays back 73% or more. It also improves the curb appeal of a home. It is less expensive than other alternatives but just as attractive. Additionally, it can save lots of energy. Steel has a magnetic weather stripping which prevents homes from losing heat and air resulting in reduced heating and cooling costs. New doors fit and insulate better than older ones.
Buyers spend a lot of time staring at walls and ceilings. Sellers must paint interiors and exteriors to add pizzazz, cover ceiling cracks, and get rid of stains from smoke and grease. A can of paint costs about $20 but can make a wall look priceless. Homes for sale need to have a fresh appearance in order to entice buyers and paint is an inexpensive way to accomplish this. Tell sellers to choose neutral contemporary shades which brighten up spaces without looking too personal. They should also get rid of wallpaper.
Most new homes have ample storage. Old homes on the other hand may lack even basic storage options like closets. Advise sellers with such homes to expand their existing storage options or to build new ones. They can also redesign their rooms to create space for extra storage. Those good with their hands can try DIY projects. Others can visit stores offering storage solutions to find inspiration.
According to Remodeling Magazine, sellers are more likely to recoup the money they spend on basic home maintenance like new siding than on major kitchen or bathroom remodels. Siding replacement can yield 92% of its cost and is one of the quickest ways to give a home instant freshness. Buyers know that maintenance can use up a lot of cash and keep off homes in need of maintenance.
Kitchen remodels yield nearly 100% ROI. However, high-end updates don’t pay back as much as mid-range or minor ones. Most buyers are not willing to pay extra for 8-burner stoves, built-in subzero refrigerators, or travertine floors. Some of the minor updates your sellers can undertake include:
This is the least expensive option. It involves replacing cabinet doors and hardware or attaching thin veneers to the surfaces of the cabinets. If the cabinets are painted, sellers can add a new coat of paint. Fresh paint in contemporary colors can turn a dull kitchen into buyer bait.
Nothing puts off buyers like stained sinks, cracked countertops, and leaky faucets. Advise sellers to install new faucets and sparkling sinks. They should avoid expensive granite countertops and opt for simple laminates. Kitchen renovations can yield 60%-120% of the invested amount. Nevertheless, sellers should be careful not to make their kitchens fancier than the other rooms in the home.
Generally, buyers want to buy homes with modern amenities, no deferred maintenance, and are ready to occupy. However, sellers must be careful not to go overboard when renovating. The value of a home is determined by the other homes in the neighborhood so the improvements must not raise the property’s value drastically over the others in the neighborhood.
Looking for more ways to increase home ROI? Look to the iHouse blog for helpful tips.
Ronique Gibson is an Associate Architect and a LEED Accredited Professional, who has been in the design industry for over 13 years. She started her design blog in 2009 and today it has become a premier destination for helping homeowners with everyday lifestyle challenges. Her readers check in daily for help with their homes, DIY project ideas, recipes, crafts, and inspiration to beautify and enjoy their homes.