6 Improvements you can make to Increase Return on Investment

Updated: Apr 22, 2020

It can be a challenge to determine which home improvements are worthwhile to make before deciding to sell your home. A major kitchen remodel costs thousands of dollars. While this might be beneficial for some, it certainly can hurt others. It is always important to talk to your real estate agent before you start any home improvement projects. Your agent will help you understand the buyer demographics and talk with you about the competition in your area. Your agent can help you make an informed decision about what will help you get the most "bang for your buck." That being said, here is what the research shows about improvements that recoup upwards of 116% back on your return on investment.

1. Focus your efforts on the exterior of your home.

Did you know that 95% of buyers look online first? That means that your pictures need to stand out amongst the rest. Most often than not, the first picture featured for a listing is the exterior of the house. If you want buyers to keep clicking through your pictures then you need to show off a well maintained exterior. So what can you do? Depending on what is in the most need of some TLC and your budget, that could be as simple as painting the front door, trimming the plants in front of the house, adding a bench or a potted plant on the stairs. Research shows that you can recoup upwards of 100% of your investment by maintaining your exterior. If you need some major work done such as replacing a roof, painting or changing the siding, replacing garage doors, or replacing windows then talk with your agent. It may be necessary to put in the extra money for exterior work, or you could add an allowance for the home buyer to make those repairs themselves.

2. Improve the energy efficiency in your home.

According to a remodeling.com survey, you can recoup 116% of your costs on attic insulation. It may be beneficial to replace old windows with new energy efficient ones. Changing out lightbulbs is the easiest on a budget and can go a long way. Choose Feit Electric 60 Watt Replacement 9.5w LED bulbs. They cost around $7.00 a bulb, but they have a 23 year life expectancy and the light quality is superior to others. Light plays a key role in creating high quality photos.

3. A new coat of paint goes A LONG way.

You can recoup upwards of 109% on your investment if you paint your rooms. Choose neutral colors as they appeal to the broadest audience. Grays, beiges, and light blues are good choices. Stay away from dark or bold colors. They can put off buyers. Studies show that only 10% of buyers can visualize the potential of the home, so make this simple change to help buyers visualize the potential!

4. Budget friendly kitchen remodels.

While a MAJOR kitchen renovation may not be in your best interest, a budget friendly one is certainly attainable! As many as 80% of home buyers list the kitchen as their favorite room. This means that buyers are going to be critical in this area. If buyers see the kitchen as old, outdated, and as a money pit, then they will move on to the next house. If your kitchen needs some updating think about making some minor updates. A minor remodel can recoup 87% of the money invested on updates. Minor updates include painting cabinets, updating hardware, adding new appliances, and changing out light fixtures.

5. Minor bathroom repairs/remodeling

Just like a major kitchen remodel may not be worth investing in, a major remodel of a bathroom may not either. Minor bathroom updates can allow for a 102% return on investment. This includes re-grouting tile, replacing mirrors, light fixtures, toilets, and painting the bathroom a light, neutral color.

6. Fix and/or update your flooring

Hardwood floors draw buyers in. Adding hardwood floors could increase your sale price of 2.5%, but again, you want to speak to your agent before undertaking such a big project. If you already have hardwood floors, then re-finishing them will go a long way. If you have newer carpets, get them cleaned by a professional. If you have old, worn out carpets, you should consider replacing them.

Whether it's swapping old, out-dated light fixtures or painting cabinets, making small changes can go a long way!

#furniture #decortrends

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