Top Home Upgrades with Good ROI
When you're getting ready to sell your home, it's natural to consider making a few upgrades to boost its appeal and, ultimately, its selling price. However, not all upgrades are created equal when it comes to return on investment (ROI). As real estate experts at Homeonomics, we've compiled a list of top home upgrades that tend to offer good ROI, helping sellers make informed decisions to maximize their home's value.
1. Minor Kitchen Remodel
The kitchen often serves as the heart of a home, making it a key focus for potential buyers. Interestingly, you don't need to go for a full-blown renovation to see a significant impact. Minor updates like repainting cabinets, upgrading to modern hardware, replacing old appliances with energy-efficient models, and installing new countertops can freshen up the space without breaking the bank. On average, a minor kitchen remodel can recoup around 72% to 77% of its cost at sale time.
2. Bathroom Refresh
Next to the kitchen, bathrooms are another critical area where upgrades can significantly affect your home's marketability and price. Simple improvements such as re-grouting tiles, updating fixtures, and installing modern lighting can transform a dated bathroom. Even a new coat of paint in a light, neutral color can make a small space feel larger and more inviting. Bathroom remodels can yield approximately 60% to 68% ROI.
3. Energy-Efficient Windows
Installing energy-efficient windows is not only an environmentally friendly move but also a smart investment. New windows can improve your home's energy efficiency, making it more appealing to buyers looking to save on utility costs. Moreover, they enhance the curb appeal and comfort of your home. The expected ROI for replacing old windows with energy-efficient ones is about 68% to 72%.
4. Deck Addition
Outdoor living spaces have become increasingly important to homebuyers, especially in the wake of recent global events. Adding a deck or enhancing an existing one can offer a significant return, providing a new area for entertaining or relaxing outdoors. The cost-to-value ratio of a new wooden deck addition hovers around 65% to 75%, making it a worthwhile investment for sellers.
5. Paint and Curb Appeal Enhancements
Never underestimate the power of a fresh coat of paint and some basic landscaping. These are relatively low-cost upgrades that can dramatically enhance your home's first impression. Opt for neutral paint colors inside to appeal to a broader range of buyers. Outside, keep the lawn trimmed, add some colorful flowers, and ensure the entryway is welcoming. These efforts can significantly boost your home’s appeal and help achieve a quicker sale, often with a ROI that far exceeds the investment.
6. Smart Home Features
In an increasingly tech-driven world, adding smart home features can make your property stand out. Items like programmable thermostats, smart locks, and home security systems are becoming expected amenities. They offer convenience and safety, which can be attractive selling points. While the ROI can vary, smart home enhancements generally increase interest in your home, potentially leading to a faster sale.
Final Thoughts
When considering upgrades before selling your home, focus on improvements that will show your property in its best light without overextending your budget. Prioritize projects that are known to appeal to today's buyers and offer a solid return on investment. Remember, the goal is to enhance your home's appeal and functionality to secure the best possible sale price.
