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Renovations With The Best (And Worst) ROI
Fixing up your home before and investing in renovations can often generate a nice return when it comes time to sell. However, not all upgrades generate a strong ROI. Home improvement projects are expensive, and their perceived value is heavily influenced by what buyers want. In some cases, you might be throwing money away.
Before investing in a new project, it's important to consult with your agent about the estimated return, especially if you're planning to sell in the next five years. Here are some home renovation projects our real estate agents believe have the best and worst ROI:
Renovations With The Best ROI
These renovations and upgrades are likely to earn you the most when it comes time to sell:
- A Bathroom Remodel
Nothing sells a home quite like a nice bathroom. Buyers want to feel like the bathroom is brand new, so if you can invest in a full remodel, you're likely to make a nice profit. A full overhaul including tub, floors, sinks, and vanity can run you $10K to $20K, but it can easily boost your sale price by more. Even a minor remodel (think shower head, lighting, sink) can drive a nice profit. - A Kitchen Remodel
When it comes to your home value, your kitchen is often the most important room in the house. Update appliances, upgrade counters, give your cabinets a makeover, and add a fresh coat of paint. You're likely looking at $15K to $20K worth of work, but you can easily recoup most of that cost in your sale price. - Curb Appeal And Landscaping
Your home's curb appeal is the first thing buyers will notice in listing photos and when pulling into your driveway, which means good landscaping is essential for marketing your listing. Invest in lawn treatments, new plants, flowers, and lighting. For some great landscaping ideas, check out the curb appeal on these Nassau County homes for sale.
Renovations With The Worst ROI
If you're thinking of ways to improve your home value, we generally recommend steering clear of these upgrades:
- Swimming Pools
You might think swimming pools can be a nice addition, but they're often costly to install and expensive to maintain. As a result, they're often turnoffs for many buyers and can actually decrease your home value (especially above-ground swimming pools). Plus, they can only be used during the summer months. - A Primary Bedroom Addition
Considering a new primary bedroom as an addition? It's likely to cost you anywhere from $40K to $80K, and you're unlikely to recover more than half of that in your sale price. While being able to market your home as having an extra bedroom will allow you to seek a higher asking price, your return won't come close to the cost of the addition. - Outdoor Kitchens
Outdoor kitchens are highly popular these days and can really be a fun summertime addition; however, they're expensive and typically only recover 60% to 70% of their costs. Like swimming pools, their value is hindered by the ability to only use them for part of the year and maintenance and upkeep required.
Upgrades and renovations are important before selling your home, but you want to make sure you're investing in the right projects. If you need help prioritizing renovations based on anticipated ROI, contact us today.