When you think about selling your home, one of the biggest factors is how much money can you actually sell your home for. Remodeling certain areas of your home is a great way to maximize the resale value of your home - but not all home renovations are created equal. By choosing renovations with the best return on investment (ROI), you are more likely to see a boost in the sale price of your home. So what renovations should you take on?
Below are 5 renovations with the best ROI on average. To speak to an agent about your home and how you can increase the list price of your home, contact GreyBeard Realty. You may also be interested in learning more about Selling with GreyBeard Realty. If full-blown home renovations aren’t something you are looking to undertake or not something your home needs, take a look at our Staging Guide to help entice potential buyers when they tour your home.
Improve Your Curb Appeal
It doesn’t matter what you’ve done to the inside of your home if the outside of your home is a turnoff to potential buyers. There are quite a few relatively inexpensive updates you can do to the exterior of your home such as repainting your front door, redoing an old walkway, or redoing the front steps if they seem a little wonky can make a big difference on how potential buyers react to your home. Some larger, more expensive projects, such as replacing your garage door, residing your home, replacing the worn-out siding with stone, and adding thoughtful landscaping all have amazing ROI. Replacing a two-car garage door and replacing it with a new four=section garage door has an average 97% ROI. Replacing vinyl siding with stone veneer on part of your home, such as an entryway, is a big curb-appeal upgrade for your home and typically has a 95% ROI. If your home wouldn’t look good with stone accents, consider residing tired, worn-out siding – which typically has a 75% ROI.
Install New Windows
Replacing the windows, especially on an older home is not something a potential buyer will overlook. Not only will it help with the overall efficiency of the home it can also have a big impact on the way your home looks on the outside. On average, updating your windows will have a 70-80% ROI, and will help reduce heating/cooling bills while you still reside in the home.
Add a Deck
If you have the budget and the space to add a deck to your home, you are likely to see an ROI of between 75-85%. On average, a 16-by-20 foot deck, including the railing system, is approximately $13,333. Taking the time to deliberately plan out your deck and incorporate unique features such as built-in seating, planters, and integrated lighting and using high-quality materials that extend the overall life of the deck are going to pull in higher returns.
Update Your Kitchen
Updating the kitchen is a popular upgrade made to homes prior to being listed. It’s no surprise why when you can see anywhere from an 80-90% ROI. While it can be a great way to get back your investment and help sell your home more quickly, you definitely want to be careful when taking on a kitchen remodel. You will want to consider the cost of your materials versus the value. Redoing the countertops in granite or marble isn't always the most cost-effective, especially if you are looking at the cost of installing marble countertops versus the cost of your home. Updating things like appliances, refacing cabinets, updating hardware, installing a new sink and faucet, repainting, redoing the floor, or adding a window above the sink can be more cost-effective updates that still make a significant impact.
Bathrooms are a very important part of any home. While updating existing outdated bathrooms may not see a very significant ROI (typically around 50% or so), adding additional bathrooms to a home if there aren’t enough can really increase a home’s sale appeal. While not every home has this particular problem, the number of bathrooms can be a determining factor for potential buyers. Short on space? There are some unique ways to add half baths to a home such as underneath the stairs or sacrificing a closet. Keep bathrooms relatively neutral and aesthetically clean to appeal to the widest number of home buyers as possible.
Regardless of whether you are going to take on any of the projects from the list above to seel your home soon, or you’re just thinking about what you can do to your house today that can have an impact 5 years from now - it’s important to be realistic about what you can afford. It’s important to keep in mind that your return on investment is never guaranteed and is impacted by a myriad of local market factors. Get an Asheville Real Estate Market Report for more information on the current selling market in the area.
Historically, projects such as updating kitchens and bathrooms, replacing windows, and adding a wood deck have shown the greatest ROI regardless of the market the home is in. You can see a full list of home renovations and their value in the 2019 Cost Vs. Value Report.