Home Improvements That Sellers Should Consider
If you have been thinking about selling your house, there is a good chance you are wondering what repairs and renovations should be made before listing your house. Popular HGTV shows tend to stress the importance of kitchen and bathroom remodels, however, there might be a better way to spend your money.
Focus on Maintenance First
A fancy kitchen upgrade is going to mean little to buyers if the roof needs to be replaced and the plumbing is leaking in the basement. Many home improvements that have the largest return on investment are maintenance related and not cosmetic upgrades.
Replace the Roof
If your roof needs to be replaced it is worth spending the money on before you list your house for sale. The National Association of Realtors found that buyers recoup 105% of the investment they make from replacing the roof. This is also a maintenance item that buyers overestimate the cost of. That means if you choose not to replace the roof there is a good chance buyers will try to knock the price down by more than the cost of actually replacing the roof.
Having proper insulation helps lower the cost of heating and cooling. Buyers that are looking for energy efficient houses are going to appreciate having additional insulation added to your house. REALTORS found that this improvement costs an average of $2,100 and recoups 95% of the costs.
Replace the Siding
This is one cosmetic upgrade that is well worth the investment. New siding adds to your home's curb appeal, which is what helps attract buyers to your house. Remodeling Magazine conducted a study that showed replacing siding allows homeowners to see a 92.8% return on investment.
Buyers love hardwood floors. Sellers with hardwood floors need to show them off. Spending money on refinishing the floors not only helps to preserve the wood and make the floors last longer, but it also provides a cosmetic upgrade that buyers love. Sellers usually find a 100% return on investment on refinished wood floors.
Save Your Money
There are some home improvements that are just not worth spending your money on when you are getting ready to sell your house. Even if the improvements look nice, buyers might not be willing to pay more for your house because of it. When making improvements it is important to consider the value of your house and the houses that are in your neighborhood. Adding a $25,000 kitchen remodel into a house that has $150,000 market value does not make any sense.
Adding a Bathroom
It's true that buyers like to have enough bathrooms in a house, adding one before selling might not be the best use of your finances. The average bathroom addition costs $42,000 and only provides a 56% return on investment.
There are some buyers that love swimming pools, but it is not worth the cost of adding one before selling. Many buyers only see the cost and work involved with maintaining a pool, and in certain areas it can depreciate the property value.
Upscale/Luxury Kitchen & Bathroom Upgrades
Kitchen and bathroom updates can provide a good return on investment, if done properly. Spending top dollar for luxury kitchen and bathroom renovations will most likely not be worth the money. Make sure that the upgrades you are doing are in line with the market value of your home as well as current design trends.
If you are in doubt about what projects you should be focused on before selling talk to your real estate agent. An experienced agent can help you determine how the improvements you make will stack up against the comps in your area.