Making upgrades can be as easy as replacing the handset on your front door or Kitchen and Bath Updates or even repainting the entire house. 

The question is always what home improvements give the best return on the remodeling dollar? Return on Investment (ROI) is generally less than 100% in real estate, so the rule of thumb is “less is more.” It is frequently advised in this area that it’s better to update/remodel your home while living in it and not solely at the time it comes to selling. That way, there is more enjoyment in the improvement and less cost in preparing for sale. Some desirable upgrades or home improvements will not return their cost in the sale price.

Upgrading with ROI in Mind revamp the kitchen, don’t make the mistake of assuming that the investment will increase the value, dollar for dollar. The remodel may add value to the home, but the return in dollars spent will be around 50%. Smaller upgrades, like replacing outdated fixtures in the kitchen and bath, are certainly worthwhile, but the major remodeling of those rooms isn’t wise, just to sell your home. 

That’s not to say you can ignore necessary repairs that a home inspector would red-flag or mortgage company would demand before issuing a loan to a buyer. If major problems, like a leaking roof or outdated electrical wiring, exist, you may want to repair those before putting your home on the market or expect to give concessions to the buyer. 

Starting with the Basics 

Every listed home should meet the basic expectations of any buyer; it should have a sound roof, functioning gutters and downspouts, a foundation without cracks, functioning heating and/or air-conditioning system, solid subflooring, and safe and secure electrical wiring. With financer-mandated home inspections, any shortcomings may be required to be remedied to get buyer financing approval. It is important to understand that the market value of a home is determined by the prices of comparable homes recently sold in the area. Extensive remodeling to sell the home or to increase the value may not pay off. 

Replacing Appliances 

New appliances undoubtedly make an impact on buyers. The National Association of Realtors® conducted a survey of buyers and found that: 

● Buyers were usually “interested” or “somewhat interested” in buying a home that featured new appliances. 

● Roughly 17% of respondents preferred stainless steel. 

● The most important factor: available appliances. 

● Most buyers who were unable to get their sought-after appliances said they would have been willing to pay, on average, nearly $2,000 more for them.

Potential buyers want appliances included and will pay more for them, especially if they are new or in excellent condition. New appliances might be what sets a house apart from the home for sale across the street. If new appliances are out of reach, offer immaculately clean and fully functioning existing ones.

 

Tips for Kitchen and Bath 

When making upgrades to the kitchen and bath, keep aware of what constitutes a substantial investment. The key is to consider the mass appeal for the sake of resale value. One homeowner decided to add a backsplash and more cabinet space in the kitchen and then updated the appliances and refinished the oak flooring. The total cost was $4,000. The seller kept the price comparable to sales in the area and ended up selling for $27,000 more than the asking price because interested buyers started a bidding war! You do not need to bust your budget to sell your home, but you do want to have mass appeal. Kitchens are pivotal in-home appeal. Here are some suggestions of what you can do to your kitchen and bath to impress buyers without losing ROI:

● Paint neutral colors.

● Add a new backsplash in the kitchen.

● Install new countertops if dated or if you need to bring the home up to current area standards.

● Add new, multifunctional kitchen faucets to add mass appeal.

● Add cabinet space or increase storage in the pantry.

● Replace dated bathroom vanities. Pedestal sinks or trendy cabinet sinks have mass appeal.

● Replace toilet seats. 

Kitchen and Bath Updates 

● Replace the toilet seat. 

● Repair the grout in tile backsplashes, floors, and tub surrounds. 

● Refurbish tired-looking cabinets with fresh paint or finish. 

● Replace a dated bathroom sink with a pedestal variety or cabinet sink. 

Check these hardware items closely and replace, as needed: 

● Towel bars 

● Toilet paper holder 

● Door handles 

● Dated light fixtures 

The goal is to touch up your home nicely without excessive spending. The Internet has a wealth of do-it-yourself videos that can help you update your bath and kitchen if your budget is limited. 

If you have broken or worn-out hardware, it’s best to replace the entire set. If you can find matching pieces, you can paint the old and new to match.

Flooring Plan 

Although you want to avoid home shoppers looking down on your home, they will be looking down at what is under their feet. Your home’s value can be downgraded by the buyer if your floors are in bad shape. On the flip side, if your home’s flooring is well done and in excellent condition, buyers will be more willing to pay more for it. Maximizing profit without compromising investment dollars is the goal, but if flooring and carpeting are not in salable shape, you need to take inventory. There is no point in spending money unnecessarily if the improvements do not add significant value or help the home sell quickly. 

Two Energy –  Saving Upgrades to Lower Utility Bills 

● Install an energy-saving smart thermostat (less than $300) that saves on utility bills. 

● Install solar vents ($500-$700) in the attic space that help expel hot air during the summer months.

How I can help:

 If you’re looking to improve your home’s value but don’t know where to begin, I’d be more than happy to give you advice about what buyers in your area are most attracted to when they’re searching for their next home. I can also give you more advice about simple ways to increase the value of your home without spending a lot of money. 

If you’re looking for a dedicated agent to handle the sale of your home or help you purchase your next one, look no further. My former clients can attest to how hard I’ll work on your behalf. Contact me today to find out how much your home is worth, and I’ll send you a free copy of my book that shows home sellers how to get top dollar for their homes in the shortest amount of time! 

Natalia Garbuzova, 778-317-6393, natalia@firststaybc.com