It is always a great feeling to finish home improvements and bask in the enjoyment of the upgrade. However, if you are possibly considering selling your home in the relatively near future, it makes sense to understand what home improvements pay off at the time of sale and which ones don’t. In the article below, we list three home improvement projects that pay off when it comes time to sell and three that don’t.
Improvements That Pay
While it is rare to recoup all of the cost of any home improvement, the following three improvements offer a strong ROI on each Dollar spent.
- Minor Kitchen Remodel – As long as you do not get carried away, a minor kitchen remodel can allow you to recoup almost all the investment you made. This is an ideal improvement when your kitchen just needs an updated look. It’s amazing what some updated lighting, resurfaced cabinets and some newer appliances can do to transform your kitchen for a reasonable amount of money.
- Minor Bathroom Remodel – Like the kitchen remodel listed above, the key here is to keep the remodel simple. Ripping everything out and starting from scratch can be expensive, but you can change the look significantly by doing things like re-glazing the old tub instead of replacing it. You can also do things like removing dated shower doors and replace with a fun shower curtain, a cool mirror and some updated lighting. Finish it off with a fresh coat of paint and you have a lightly remodeled bathroom that will pay off when you sell.
- Exterior Refinishing / Curb Appeal – This can encompass many things, but you want the exterior of your house to look fresh whenever it’s time to sell. Things like upgrading vinyl siding to fiber-cement siding, replacing an old garage door or adding a stone accent to a boring facade can not only increase your enjoyment of the home, they pay dividends when it comes time to sell as well.
Improvements That Don’t
If you are doing the following improvements, you will recoup some of your investment when it comes time to sell, but understand that the majority of the ROI will be in the form of your enjoyment of the improvements while you still own the home.
- Adding an Upscale Garage – If you need the additional garage space or you love to tinker, this improvement can be enormously valuable to you. Just don’t plan on a potential buyer placing as much value on it as you do. While they may think it is nice to have, it doesn’t typically have a great payback compared to what it costs.
- High-End Kitchen Remodel – A kitchen is one of the areas of a home that can make or break a sale, so you definitely want it to be nice. The issue can be when a homeowner over-improves a kitchen. First, the overall cost of the kitchen should be commensurate to homes selling in a particular price range. In a home worth $700,000, it doesn’t make sense to have a $125,000 kitchen remodel. While the new potential owner might be thrilled to get such a nice kitchen, it likely did not raise the value of your home anywhere near the remodel cost.
- Bathroom Additions – This one might be a surprise. You might think adding a bathroom would add value to your home. However, one of the worst home improvements you can do with regard to recapturing your investment at the time of resale is adding a bathroom. In fact Realtor.com listed it as the #1 project that offered the least return on investment coming in at only an 56.2% payback.
We hope this article shared a few ideas on which home improvements will pay off when it comes time to sell your home and which ones do not. Ultimately, it is about truly enjoying your home while you own it. However, be aware that some of those improvement may be primarily for your enjoyment and not significantly increase the value of your home. Let me know if you have any questions about this article. You can reach me me directly by calling (714) 907-3195 or emailing me at firstname.lastname@example.org. I look forward to hearing from you!