5 Renovations That Will Increase the Value of Your Home

Even though we’re currently in a seller’s market, that doesn’t mean that buyers will spontaneously buy every home that comes on the market. Buyers still have standards…surprisingly enough.

And even if your home meets the criteria that buyers in the market are looking for, in order to get the most bang for your buck when selling your home, you need to make it stand out from the rest of your competition. And the best way to do that is through these five renovations.

NOTE: Return on investment values and remodeling costs are subject to change.

#1: Bathroom Remodel

Average return at resale: 102%

People spend a good chunk of their time in the bathroom, which is why updating your bathroom will help increase the value of your home. If you replace the bathtub, tile surround, floor, toilet, sink, vanity, and fixtures, it will cost roughly $10,500. From this investment you’re making on your bathroom, you can expect to get back an average of $10,700 when you sell your home.

#2: Landscaping

Average return at resale: 100%

People always say to never judge a book by its cover, well this does not apply when it comes to real estate. A home’s interior can be absolutely perfect, but if the exterior is not at the same level, then that will turn a lot of buyers off. Remember, you want your home to appeal to as many buyers as you can so that they’ll essentially bid against each other for your home.

The average homeowner spends roughly $3,500 on landscaping, according to the American Nursery Landscape Association, and typically gets their entire investment back when they sell their home. Having a perfect lawn is every homeowner’s dream, but growing grass can be as hopeless as growing hair if you’re bald. So consider partially or fully replacing your lawn with sod, which costs about 30 to 35 cents a square foot, so a 5,000 sq. ft. yard would cost about $1,500 to sod.

Here’s a local landscaping business you can reach out to that will help you make your dream lawn become a reality: Finnegan’s Landscaping LLC

#3: Kitchen Remodel

Average return at resale: 98.5%

Remodeling your kitchen will cost an average of $15,000, and you will get back roughly $14,775. And don’t get caught up on the 2.5% that you’re “losing out” on. Remember, you’re going to be able to enjoy the upgrades that you’re making to your kitchen, and then when the time comes to sell your home, you’ll be getting back most of your investment.

So what does $15,000 towards a kitchen remodel get you? Oh, you know, only 30 feet of re-facing for cabinets and drawers, a new wall oven, cooktop, sink and fixtures, countertops, and flooring. I’m sure that should be enough to please your inner Gordan Ramsey.

#4: Exterior Improvements

Average return at resale: 95.5%

The cost to replace 1,250 sq. ft. of vinyl siding is about $7,200 and you’ll get back around $6,875 when you sell your home. Not feel siding? No problem, if you decide to paint the exterior instead a gallon of paint will cover roughly 400 sqft. If you’re REALLY trying to keep up with the Joneses then consider going with an upscale, fiber-cement siding, which costs $10,400 and you can expect to get back $10,800 at resale, which is an even better return on investment at 103.8%

#5: Deck

Average return at resale: 90%

Haha, I’m sure that any renovation that requires a boatload of lumber is the last thing that you’re thinking about doing right now, but rest assured, the price of lumber has recently fallen from its high of $1,670 to currently being $495, so lumber is definitely more affordable now. BUT lumber prices are always fluctuating, so be sure to keep an eye on that.

Nowadays, building a 16x20 ft. pressure-treated wood deck costs about $11,000. When you sell your home, you’ll get about $10,000 of that back, a recoup rate of 90%. So really you’re only spending $1,000 for a deck, which you can spend an endless amount of time on with your family and friends; I would say that’s worth it.

Now Go Out There and Make Those Renovations!

So as you can see, many benefits come with renovating your home. Not only do you get to create your dream home, but you also get to increase the value of your home. That’s not to say that ALL renovations will increase the value of your home. It really comes down to what buyers in your market are looking for. So if you need some advice on that, then reach out to a realtor that knows and understands all of the market trends such as yours truly!

Sources

Brooks, Tiffany. “Top 15 Home Updates That Pay Off.” HGTV, 2020, www.hgtv.com/lifestyle/real-estate/top-home-updates-that-pay-off-pictures.