Many of us have considered making improvements before selling a home with the purpose of getting as much resale bang for our buck as possible. But not all home upgrades are created equal. The goal is to identify the key improvements that will deliver the highest returns and skip the ones that are not worth the time or money or effort.
When it comes time to sell your house fast, you might be concerned with what kind of projects will net you extra cash. The following upgrades sound good in theory, but result in poor financial returns when selling a home:
1. Kitchen and bathroom renovations
Bathrooms and kitchens are by far the two priciest rooms to renovate. The average kitchen remodel hovers just over $20,000 ––this typically covers the cost of upgraded countertops, cabinets, appliances, plumbing, and flooring (expect to pay more if you’re going for premium upgrades). Remodeled bathrooms can cost more than $10,000. If you’re renovating these rooms to yield a better return, think again.
Typically buyers look closely at kitchens and bathrooms to avoid outdated designs or eclectic, incohesive remodels. Rather than making a major investment and design revamp in one or both rooms, consider a simple refresh — update lighting, hardware fixtures and front-facing cabinets. It will freshen the space and lessen the impact on your bank account.
2. Decorative roofing and garage conversion
Updating a roof for decorative purposes will give a home a more upscale look; however, it won’t necessarily increase the home’s value. Homeowners should invest in repairs if a roof has damage. But with the average price of a roof replacement costing nearly $10,000, stick to the necessary fixes that are lower cost.
Another pricey update to think twice about if you’re going to sell your home is a garage conversion. Often, simpler is better. What may sound enticing to you (an office, spare room, or man cave) might turn off a buyer who wanted a two-car garage with ample storage space. That said, replacing old garage doors is a good move –– it spruces up the appearance of the house, and, as Forbes reports, it has a 92% return on the investment.
3. Yard and patio upgrades
U.S. News & World Reports writes that the addition of a sunroom yields one of the smallest returns at only 51.7% of your investment. Hold off on this pricey renovation and think about building a fire pit seating area instead. Not only is it an added living space, but you can make the fire pit update at a fraction of the cost of a sunroom.
Spending big on a landscape project is also a bad idea before selling. While a swimming pool and lush landscaping might feel like luxurious add-ons, you won’t make your money back on the investment–not to mention the time and stress of it all.
4. Appliance and utility updates
File this investment under maintenance. If your air conditioner, heating unit, water heater or septic tank are on their last legs, it’s a good idea to replace them before selling your home. However, these updates won’t technically add to your home’s value, and you will likely not recoup the money you spent to replace them. Still, these are important updates to make as buyers expect them to be in good shape and functioning, and it could make or break the sale. Heating, cooling and plumbing are needs instead of luxuries, so if they are functioning poorly, it will cost you when you sell your home.
Reality TV isn’t real (so save your cash)
Home renovation TV shows are quite popular among homeowners since they make their renovations look easy and affordable—but the reality is that these projects are rarely easy or affordable. Many home sellers inevitably have to invest in their home to get it ready for sale, not to mention for post-inspection repairs (or credit the amount to the buyer). You could lose out big time if your renovations are determined to be unsafe or noncompliant with local building codes. Knowing which improvements drive value helps you avoid overspending in the first place.
If you’re overwhelmed with getting your home in order before selling, contact Offerpad. We take on the hassle and cost of renovating and selling your home, freeing you up to focus on moving on to your next dream house.
What updates are you considering for your home? Share your favorite cost-effective home upgrades in the comments below.
