Some home renovations pay off much better than others! Home improvement projects geared towards a homeowner’s tastes have the least positive effect on asking price. A specially designed art studio will not appeal to most buyers but projects like kitchen and bath renovations will! Home buyers love to see a brand new kitchen, gleaming appliances, hardwood floors, and beautiful landscaping.
Buyers also care about features they can’t necessarily see from a home listing like a new siding and a new furnace, but they place value on these repairs.
Many home improvements add value both for the current homeowner and for when it is time to sell. Installing hardwood floors in a home increases home value significantly but are also a beautiful aesthetic for the current owner, along with being easier to clean and maintain than other flooring types like carpet. It is easy to refinish or change the color of a hardwood floor. Carpet is a home improvement that a homeowner is more likely to consider right before selling their house. Carpet is harder to keep clean and freshly installed carpet may be more appealing to a buyer than carpet that is several years old or older.
Your budget may help you decide where to spend your money on home improvements. If you are going to be in your house for longer, your preferences may decide this but if you are selling soon you may lean towards improvements that increase the visual appeal of your home. A dated kitchen or bathroom, dingy paint, or stained carpet may be where you start first!
Renovations with Best Return on Investment
When polled, a survey of buyers much preferred hardwood floors in the living room and dining room and slightly preferred hardwoods to carpet in bedrooms (55% to 45%). Hardwood floors are also slightly favored in the kitchen over tile floors. Younger buyers vastly prefer hardwood floors
Major Bathroom Remodel
Everyone loves a new bathroom! Bathrooms tend to have an 85% return on investment, while also bringing improved function to the current homeowner. Dual vanities, a deep soaking tub, and storage are all valued by buyers!
Replacement Vinyl Siding
Vinyl siding has an 89% return on investment. It may not be the first thing a buyer notices but it adds a lot to a home’s asking price, typically $8,000 more.
Major Kitchen Renovation
Kitchen remodels are very expensive, but tend to add a lot to your home’s asking price. A kitchen remodel can bring heightened function, style, and organization to the current homeowner along with generally having an 81% return on investment.