The start of a new year is also when many homeowners start planning to sell their properties. This often involves considering renovations or repairs to help sell their home faster and for the highest possible price. However, think twice about spending large amounts to create what you think is a dream home. Your style may not match potential buyers’ tastes or provide a worthwhile return.
Here are top tips from Zonda, the National Realtors Association, and The Wall Street Journal (WSJ) on which updates offer the best Return on Investment (ROI).
Boost Curb Appeal
The Wall Street Journal suggests making minor, cost-effective improvements to highly visible parts of the property. WSJ found even minor enhancements to the home’s exterior boosts listing photo appeal and brings more potential buyers through the door.
Smart Fixes with High ROI
Zonda identified garage door replacement as delivering the highest ROI. In 2024, the average garage door replacement cost $4,513 but added $8,751 to the resale value, recouping 194% of the cost.
Replacing an entry door also provided strong returns. Zonda reported the average cost at $2,355, adding $4,430 to the resale value and recouping 188% of the cost.
The National Association of Realtors further emphasized curb appeal, noting sellers could recoup:
- 217% of lawn care costs
- 104% of landscape maintenance expenses
- 100% of overall landscape upgrade investments
Simple Upgrades with Big Impact
WSJ also recommended low-cost improvements for significant ROI, such as:
- Painting worn walls
- Removing old carpets
- Decluttering living spaces
- Washing windows
- Addressing lingering odors
What to Avoid
In many cases, it’s more cost-effective to price your home accordingly rather than invest in major remodeling projects before selling. Renovations can be expensive and often don’t align with buyer preferences.
Zonda highlighted how certain upscale renovations often don’t deliver:
- Adding a luxury primary suite costs $339,513 on average but increases resale value by only $81,042, recouping just 24%.
- Remodeling a high-end kitchen costs $158,530 on average but adds $60,176 to resale value, recovering only 38%.
Better Alternatives for Sellers
Instead of costly remodels, consider simple updates that make a strong impact:
- Cabinet Pulls & Light Fixtures: Updating cabinet hardware and replacing outdated light fixtures can modernize a space.
- Bathroom Refresh: Reglaze the bathtub, replace old toilet seats and shower rods.
- Small Touch-Ups: Clean or replace light switch plates for a fresher look.
Modern light fixtures, especially in new construction homes aimed at first-time buyers, can significantly improve a home’s appeal.
Final Takeaway: Don’t Overdo It
Real estate agents interviewed by The Wall Street Journal agree: Avoid going overboard with expensive renovations. Focus on cost-effective, high-ROI improvements. Work with a skilled real estate agent to price your home accurately and consider offering incentives to let the buyer handle any remaining renovations themselves.
Almost all homes need some attention to get it ready for market. I’m happy to share my experience as a seasoned real estate agent, property investor and homeowner, to get your home ready with smart decisions on upgrades and repairs. Please reach out.
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