Investing $20,000 on a mini golf course in the back yard may seem like a fun plan. It may even be a good investment if you plan to live in your home and enjoy the golf course for many more years. But if you are like many other homeowners that are likely to sell their home in the next couple of years, you may want to consider sticking to improvements and renovations that are more likely to add resale value to your home.
Adding Resale Value To Your Home
The renovations recommended in this article will not only add resale value, they will likely help you sell your home faster and for more money. However, please don’t underestimate the value of regular home maintenance or home system repairs. If your home requires new plumbing or a new roof, fix those items first before considering other renovations.
Why, you ask?
Well, if you do plan to sell your home, a buyer will often disregard your property immediately if major systems or maintenance have been neglected. My advice is to fix anything that is glaringly obvious about your home. Anything that will prompt a buyer to ask “What is that? Should I be concerned about that?” should be fixed right away.
Do Some Research Before Renovating
Before dropping your hard earned cash, make sure your plans aren’t too extravagant for your neighborhood or home value. For example, it wouldn’t be much of a benefit to do a $50k kitchen remodel on a home in the $150k to $200k price range. You’re not likely to see an increase in value that matches your investment, let alone exceeds it.
You don’t always have to drop several thousand dollars to get an increase in value. To illustrate, the top home improvement item to increase your home’s value based on a 2014 value report was a new front door 1. Simple, but surprising, isn’t it?
This may not seem right given the expensive renovations you see on TV that take months to complete. Just remember, it wouldn’t be an interesting show if all they did was replace a front door. Imagine the big reveal at the end of that episode.
3 Areas Worth Renovating to Add Resale Value to Your Home
Whenever I show a home, buyers always head straight for the kitchen. It is the heart of the home, and so many activities tend to take place there. Investing money in upgrades to a kitchen tend to see good value returns.
Before you start ordering marble floors and custom cabinets, make sure you are not putting lip stick on a pig. To put it another way, make sure the design layout of your kitchen is appropriate and doesn’t need changed before adding all those upgrades. Costly high-end materials are great, but they won’t make up for a poorly designed space.
As a Realtor, I can tell you kitchen remodels help sell homes. If I show a home with a dated kitchen to a buyer, they often think that it will take another $40k to $50k to remodel the kitchen. In many cases, a kitchen remodel won’t cost that much, but buyers tend to exaggerate the costs in their minds.
Did you know the average person spends 1 ½ years in the bathroom during their lifetime?2 You can see why bathrooms are important. A bathroom is another sure bet to add value to your home. Even if you can’t afford to do a full remodel, a little effort will go a long way.
Replace the fixtures, remove old frost glass and put in new clear glass, clean up rust stains, clean grout and apply fresh caulk at a minimum. Don’t underestimate the simple improvements of a fresh coat of paint and a new low-flow toilet. Often, spending $500 in a bathroom can totally bring it up to speed.
Landscaping ties into one of my favorite topics to talk about, curb appeal. Doesn’t everyone want their home to be inviting? You want buyers to feel welcomed and not be wondering if they should head back to their car and get their machete to navigate the front yard.
Landscaping, in my opinion, has one of the biggest returns based on time and money spent. Most yards require a weekend of work and maybe $500 to $2,000 in upgrades to make them shine. That time and money will easily be recouped upon sale.
Final Thoughts on Adding Resale Value
Trends in housing are always changing. Make sure to speak with your Realtor to receive the best advice on upgrades if you plan to sell in the near future. If you plan on doing upgrades to enjoy yourself, then the above items are a great place to start.
What upgrades have you seen that have made an impression on you? Let me know in the comments.