In 2022, homeowners spent an estimated $433 billion improving and maintaining their homes. Unfortunately, come time to sell, not all renovation projects recoup their cost. This begs the question:

Are renovation projects necessary before selling your home?

Which improvements yield the highest return on investment (ROI)?

Robert Ryczek, a top-selling real estate agent in Gainesville, Florida, with 44 years of experience, says, "I've seen examples of both, where people have spent things on the right issues and gotten a pretty good return, and then spent money that, in my estimations, didn't attract many buyers."

 

If you're toying with the idea of remodeling your home before selling, let's take a look at which projects will deliver the greatest value.

Benefits of remodeling your house before listing it for sale

It's useful to understand why you would want to update your home in the first place before we get into what improvements make the most sense. It's one thing to make improvements you're planning to love for years to come, but it's quite another to shell out cash for renovations just before you move out.

 

The correct restoration project can raise the value of your house and attract a bidding war from potential buyers. In a 2020 Coldwell Banker survey of more than 2,000 respondents, the company found that 80% of Americans would rather purchase a move-in ready home than one that needs remodeling.

 

Creating a space that people fall in love with will definitely have a positive affect on the sales price. Local Realtors can be a great start in understanding buyers preferences.

 

Jerome Leyba, a top-selling real estate agent in Santa Fe, New Mexico, who sells properties 33% quicker than the typical agent, advised clients to "work with a good real estate agent that knows the neighborhood and knows the location." "They take clients there, so they know what people are complaining about, so they know what's worth doing and what's not."

Home improvements that maximize your financial return

Fix what's broken.

You might be tempted to remodel your bathroom from the ground up or install hardwood floors, all of which may be great ideas, however, it's usually prudent to first concentrate on repairing items that may be damaged / broken.

 

Leyba stated, "It's sometimes better to stick with the baseline things that are going to cause you problems, like health and safety stuff."

 

Identify problems that may cause your house's sale to fall through by using a pre-listing home inspection. You'll feel confident proceeding with the sale of your home if you've taken care of broken items and resolved major safety issues.

Kitchen

If you decide to improve your house before selling, investing some money in your kitchen is usually a sensible investment. An ugly or outdated kitchen is a huge turnoff to potential buyers.

 

If you decide to remodel your kitchen, keep in mind that the price will vary greatly based on the level of customization and material quality. A moderate or do-it-yourself kitchen remodel will run you between $10,000 and $15,000 and custom jobs can set you back between $30,000 - $60,000.

 

Familiarize yourself with the data before you gut your kitchen completely. According to Remodeling Magazine's 2021 Cost vs. Value Report, the return on investment (ROI) for a moderate, midrange kitchen remodel is 72.2%, greater than that of a premium renovation. Keep in mind, this is a rule of thumb. Your neighborhood and comparable sales will dictate the level of finishes that make sense.

 

Here are a few ways to give your kitchen a new look without sinking your ROI:

Reface or paint your cabinets.

Instead of replacing your cabinets, consider one of these lower-cost options.

Don't go overboard on high end new appliances.

Replace your broken and energy-guzzling kitchen appliances with mid-range rather than top-of-the-line models.

Replace countertops.

A great way to freshen up a dated kitchen is to replace your countertops with granite, quartzite, or quartz alternatives.

Bathrooms

It's not necessary for your bathroom to seem like a five-star spa, but it should be a space where prospective buyers can see themselves getting ready in the morning. Broken tiles, blue porcelain sinks, and cracked grout can all frighten away prospective buyers.

 

The size of the bathroom, the complexity of the remodel, and your location will all naturally affect the cost of remodeling a bathroom; nonetheless, the average cost of a bathroom renovation will set you back around $10,000. Similar to kitchens, you'll maximize your return on investment if you choose less expensive amenities over top of the market. A high end bathroom remodel offers a return on investment of 56.2%, according to USA Bath, while a modest midrange renovation will yield 70.1% ROI.

 

Take into account these pointers to ensure you get the best return on your bathroom remodel:

Add a double vanity.

According to 65% of agents surveyed for HomeLight's Q4 2020 Top Agents Report, buyers want a double vanity in the master bathroom.

Update hardware.

Replace dated hardware with items that reflect current trends.

Replace the counters.

Quartz or marble vanity tops can have a great impact on the asthetic of the bathroom.

Brighten grout.

This grout renew colorant makes it easy.

Mid-range home improvement projects (less than $5,000)

Try these ideas for a low-cost way to freshen up the aesthetic of your house.

Add a small deck out back.

Buyers are willing to pay to enjoy the great outdoors. The average cost of a 12' by 12' deck ranges from $2,000 to $5,000.

ROI: a whopping 97%!

Replace your garage door.

Replace your old, worn-out white garage door with a more contemporary, well-insulated model. Average cost to replace a single car garage door is $4,000.

ROI: 94%.

Clean

Don't undervalue the importance of a thorough cleaning. Depending on the size of your home, you can anticipate spending $200 to $400 for a professional cleaning.

ROI: 935%

Exterior Improvements

Even if the interior of your home is exquisite, you'll draw in more purchasers and raise the value of your house by investing in some curb appeal.

New mulch

Fresh mulch will make your plants shine and provide a well-manicured look to your planting beds. You can anticipate spending less then $300 for new mulch.

ROI: 530%

Yard maintenance

Make the yard seem more like something to enjoy than something that needs attention for prospective buyers. You can anticipate spending less then $300 to have the lawn mowed, fertilized and pull weeds.

ROI: 540%

Exterior paint

Your home's appearance can be rejuvenated with a fresh coat of paint. For a 1,500 square foot home you might expect to spend $3,000 to repaint the exterior.

ROI: 150%

Do It Yourself (DIY) projects

If you’re not afraid to get your hands dirty, consider making your home more appealing with these quick DIY renovations.

Replace basic lights with ceiling fans

In a National Association of Home Builders study, 49% of respondents said ceiling fans were essential, while 34% said they were desired. As a result, including them in your house can increase its attractiveness to a wider range of potential buyers.

Cost: Depending on the style of ceiling fan you select, it might range from $65 to $500.

Replace outdated hardware

If you're looking for an affordable way to give your kitchen a new look, consider replacing your old drawer pulls and cupboard knobs with sleek, modern ones.

Cost: $5 to $30 for each piece

Repaint

Although your family could have benefited from a lime green accent wall or a fuchsia bedroom, these vivid hues could turn off cautious potential purchasers. You'll do yourself a favor sticking to neutral white's and beige's.

Cost: $400 to $900 for a 12 by 12 room

Considerations for remodeling your house before listing it for sale

It doesn't always make sense to make changes to your house before selling, even while some pre-listing improvements will help your home sell faster. Take into consideration the following factors before starting your project.

What is the project's estimated cost?

Prior to moving forward with a renovation project, try to get quotes from a few contractors.

How are you going to pay for this project?

Consider the interest rate and closing costs if you must take out a loan to cover the cost of the project.

When would you like your house listed?

Larger tasks like remodeling a kitchen or finishing a basement will likely involve the assistance of a professional. That means you’ll need to consider the availability of workers in your area before you decide if this project can be completed before you list.

Explore renovation options with a local Realtor

If you want more information about renovating your home before selling it, it's a good idea to connect with a top real estate agent in your area. These professionals will know what buyers in your area are looking for and precisely what they're willing to pay.

In Closing

If you're still on the fence about renovating your property, the best path forward may be selling as-is to a no fuss home buyer like CoreMark Homes. If you'd like more information on how we arrive at our cash offer price, be sure to check out: "What is Considered a Fair Offer?"

 

We would love to purchase your home today “as-is”. Find out how much you can save on closing costs and home improvement projects with a hassle-free quote.