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I always tell my clients that home improvement projects that improve aesthetics and functionality can boost resale value if done correctly. However, not every upgrade is the same. Some renovations can significantly increase your home's value, while others can potentially lower it. Based on my years in the real estate industry, here are some tips for homeowners who need them.
Consider changes to the kitchen.
Kitchen renovations are often money well spent. Many people in the market for a new house want one with an up-to-date kitchen. According to the 2022 Cost vs. Value Report, you can get back anywhere from 52.5% to 71.2% of what you put into a kitchen makeover. However, restrain yourself. Putting up an $80,000 kitchen in a house that only costs $125,000 is a bad investment. It's best to take baby steps while renovating a kitchen. Invest in new, energy-efficient kitchen fixtures, including a faucet, cabinet hardware and lighting. The cabinets can be painted a fresh color or refaced by a professional who can refinish the cabinet boxes and install new doors, drawer fronts and hardware. Most kitchens will appear much better when these changes have been made.
Replace appliances.
New doors and face panels can be ordered from the manufacturer to make your appliances more uniform. Without spending a fortune, your kitchen can have a more unified appearance.
Newer, more energy-efficient versions are better for the environment and use less power, so you should think about replacing your older appliances with them. When looking for a new house, prospective buyers often look for methods to cut costs of ownership.
Improve the state of the bathrooms.
The Cost vs. Value Report estimates a return on investment (ROI) of 51.8% to 58.9% for bathroom makeovers. Again, be careful not to go overboard. Put in new light switches, repaint the walls and re-grout the bath to make it look fresh and new. Many bathrooms can be modernized by installing a new mirror and lighting.
Renovate the interior of the house's lowest level.
The price of expanding your house's footprint can easily spiral out of control. If you want more living space (or believe potential buyers will), renovate your current home instead of building an addition. Think of the attic as an extra room — perhaps a gym. Make your home's cellar into a comfortable gathering spot for the whole family. Buyer interest is increased when a room may be easily transformed to suit a variety of uses.
Dress to impress.
A deck can be a useful addition because of the high rate of return it provides. One explanation for this is that decks provide more usable space at a lower overall cost.
Increase visibility.
Initial impressions are crucial. Cleaning the siding or installing a new walkway are both relatively easy ways to improve a home's curb appeal. It's not necessary to spend a lot of money to get good results.
Changing out the entrance door is a simple and low-cost approach to updating the look of your property. A new front door is one of the best returns on investment for homeowners. We can all imagine why.
Cut back overgrown plants and mulch around trees to complete the look. Put in a flower garden or some geraniums in pots for a splash of color.
Use a scrub brush to remove years of grime from the exterior of your property. Touch up the worn spots. As with the rest of these tips, moderation is key. Making your backyard a paradise may increase your quality of life, but it likely won't significantly raise your asking price. You can often achieve a similar effect with just a well-kept lawn and strategically arranged shrubs and plants.
Optimize the home's energy usage.
The absence of sufficient insulation or the presence of drafty doors and windows are two issues that a home inspector will observe. Issues like these can cause the homeowner to incur additional expenses for increased energy consumption. Making simple changes like installing new insulation in the attic is a good place to start. To save money on future utility bills for yourself and future owners, seal the spaces surrounding your doors, windows, switches and plugs.
Potential purchasers may be put off by a home's drafty single-pane windows. Energy-efficient windows, such as those certified by the Energy Star program, can reduce the amount of money spent annually on heating and cooling a home. Green energy tax credits are also often available for those who upgrade to Energy Star-certified appliances.
To conclude, home improvement projects that improve aesthetics and functionality like remodeling the kitchen and baths, adding new energy-efficient appliances, making the best use of all space, installing energy-efficient doors and windows and adding visible exterior upgrades like wood decks and plants can help boost resale value. However, be careful. Some upgrades can actually lower the resale value and limit the cost recouped when selling.