Building equity in your biggest asset is one of the smartest investments you can make. However, knowing what to spend your money on is essential for maximizing your ROI. The following upgrades can help you increase the selling price of your home.
1. Update Your Kitchen and Bathrooms
If you live in a hot real estate selling market, you might see as much as a 100% return on your cost to remodel your kitchen or bathroom. When considering upgrades to a bathroom, realtors featured on HGTV recommend three popular options:
- Stone floors and countertops
- Walk-in steam showers
Walk-in showers have replaced large, whirlpool tubs as a must-have feature in bathrooms with limited space. And in older homes, it’s better to invest in a second bathroom instead of remodeling a single bathroom.
In the kitchen, upgrade appliances with ENERGY STAR-certified models, as they use less energy without sacrificing performance. Minor renovations such as replacing cabinet fronts, countertops, paint, and flooring bring a 71% ROI compared to a 52% return on a major upscale kitchen remodel.
2. Replace Your Garage Door
Curb appeal is essential for improving your home’s value. It indicates that the property has been well maintained. According to Homelight, a new garage door on average costs $1200 but adds $2797 in resale value to your home. That’s an incredible 133% ROI.
3. Apply Low Maintenance Advantages
When you’re looking to sell your home, an incentive for buyers is a home that requires minimal effort to maintain. Replacing a major component such as a water heater, air conditioner or roof can instill confidence in purchasing your home and even command a higher price.
Replace hard-to-clean carpets with laminate or hardwood flooring and install easy-to-clean vinyl siding on the home’s exterior.
4. Make Your Home Energy Efficient
If you’re building a new home or planning to upgrade an existing home, borrowers can increase their purchasing power on energy-efficient homes with energy-efficient mortgages. EEMs cover energy-efficient upgrades in addition to extra funding for the purchase of the home. Upgrades typically include:
- Smart thermostats
- Heating, ventilation, and cooling systems (HVAC)
- Basic weatherization and insulation
- Energy-saving windows and doors
- Energy-efficient water heaters
To get an EEM, a borrower must usually have a home energy rater or other trained professional conduct a home energy assessment to qualify for financing. For additional information, check out the HomeStyle Energy Mortgage.
5. Expand Your Living Space
According to recent studies by the National Association of Home Builders and agent insights done by Homelight, the need for additional space remains a top priority for home buyers. Popular upgrades include the addition of physical square footage, both inside and outside the home.
Consider adding a patio or deck, as 63% of single-family homes now include patios. A deck can add over $7000 of resale value to your home while costing about $4380 to build.
The number one motivator for moving according to HomeLight’s agent insights is the need for more space. As more people are choosing to work from home, a home office is listed as the top desirable house project, with an average ROI of over $10,000.
Consult with an Expert to Increase Your Home Value
Home improvement projects require careful planning, so it’s a good idea to consult an expert. Contact Creative Home Stagers to get a quote on your next modification idea.