Purchasing a home is an excellent investment, but only if you increase the resale value while you own it.
Whether you want to sell in as few as six months or years from today, remodeling your home with Return on Investment (ROI) in mind is a smart move. Any money you put towards the home should increase your enjoyment and the value you’ll recoup after making the sale.
Instead of getting lost in a pool of home improvement dreams and ideas, evaluate the pursuits that bring the highest ROI. Here are the best ways to increase home resale value.
Major Home Improvements You Should Consider
Homeowners across the country are spending more money on larger and more aesthetic home improvements. Such renovations include upgrading the sink and not just replacing a handle or faucet.
What’s behind the new rush for bigger projects? Home equity.
Many homeowners realize they have to make significant investments to sell a house fast in Texas.
These are the most popular, major home improvement projects that will help improve the home resale value.
Refacing cabinets is an excellent, cost-effective way to refresh the look of an updated kitchen and one of the best ways to increase the value of the home.
Refacing is a reasonable alternative to a total kitchen makeover that’s also eco-friendly. A basic refacing project involves installing new cabinet doors and drawer fronts while using plastic or wood veneer to cover exposed face frames.
The result is an updated, revived look while maintaining the same cabinet structure and layout.
A simple roof repair job would be fine in a sellers’ market. But with the increasing equity, a home seller may feel financially secure enough to redo the entire roof.
However, replacing a roof near its end-of-life expectancy is an expensive but essential project. For instance, a new roof can cost over $8,000, depending on your contractor and the material. But the same roof can bump up the home’s potential price tag!
Remodeling your kitchen offers a substantial payoff, even while the project is comprehensive, complicated, and expensive. However, the costs depend on the kitchen size, materials, and extent of structural changes required.
The average cost of remodeling the kitchen space ranges from $25,000 to $40,000. However, a 92% ROI makes it worth the cost.
Such kitchen remodeling projects include painting the walls, refacing cabinets, installing hardwood floors, and bringing in new high-end appliances. Plan to spend between 5% and 15% of the home’s value on the kitchen remodel if you expect to recoup at resale.
Before selling a house in Texas, owners have many options when remodeling the bathroom. The cost depends on the homeowner’s budget and renovation style.
The average bathroom remodel project can cost close to $9,500, but you have an option to spend half or less the amount to fix essentials in small- and medium-sized bathrooms. A master bathroom remodel project is best for a lifestyle upgrade.
Remodeling the bathroom offers some impressive resale returns. But consider aspects homebuyers are likely to value to increase the ROI.
Minor Home Improvements to Make Before Selling
Big-budget remodeling projects are some of the best ways to increase home value. You’ll lure buyers, but the project will also take a lot out of your bank account. Plus, some prospective homebuyers may not like your remodeling version because tastes differ.
However, minor home improvements are simple. Some you can complete on your own and may expedite selling a house while bringing in a reasonable profit.
Below are the top ways to increase home value at a lower budget.
Improve Curb Appeal
Many Jacksonville cash home buyers find great landscaping irresistible!
Further, good curb appeal can raise your property value to 7%. Curb appeal is about the attractiveness of your property and the surroundings. This includes the physical attributes of your yard and home.
While most sellers focus on the interior, remember to neglect the outside. A cobweb-ridden entry will not draw appreciation or compliments. Potential buyers will worry about neglected unseen areas if the most visible elements are untidy.
A few outstanding improvements or home upgrades that add the wow factor to your property’s curb appeal include:
- Adding color with seasonal flowering shrubs, perennials, or annuals
- Mowing the lawn regularly
- Edge and mulch lawn for an attractive and neat appearance
- Buying and installing a new mailbox and welcome mat
- Resealing the driveway or repaving
A landscaper will charge you a few hundred dollars to plant the flowers and clean up the yard. A quick web search suggests that the ROI for improving curb appeal is between 100% and 1,000%!
Upgrading the Lighting System
If your dining area, living room, and family room have dull recessed lighting, replace them with brilliant light fixtures. An excellent option to consider is chandeliers.
Also, swap out old light bulbs in the other rooms for the correct voltage units. Adding energy-efficient fixtures and bulbs is one of the best ways to make your home energy-efficient—and attractive in the real estate market in Texas.
Showings can happen at different times of the day, so consider natural lighting. Inspect the blinds and curtains so they don’t hamper natural light from coming into the room when selling a house as is in Texas.
Exterior lighting is also a critical component of improving a home’s curb appeal. Fixtures such as path lighting will make a welcome first impression.
Note that dark ceiling, wall, flooring, and furnishing colors interfere with light. Get the help of an interior designer to be on the safe side. These professionals will audit various aspects and help you choose attractive neutral colors.
Repair or Replace Doors and Windows
Doors are entryways to your home. A drab front door, and even a garage door, will affect your home’s value negatively. Consider investing in a fresh coat of paint and replacing the old hardware.
Window replacement can do wonders for your home’s value too. Even on a tight budget, purchasing new curtains will transform how the windows look. Windows also play a vital role in home energy efficiency and upgrades will increase appraisal value.
Can Home Improvements Increase a Home’s Value?
Renovation, remodeling, and improvement home projects are excellent ways to give it a makeover, add space, or make it possible for a buyer to stay in one place longer.
However, not all home improvements increase the value of your home. Some renovations make selling the property more difficult.
One of the main points to address, whether you sell your house without a realtor or with one, is the type of buyer you’d like to attract. Is the target the buyer looking for a move-in-ready home in Texas, or the one looking for a fixer-upper?
Things to Consider Before a Home Improvement Project
Home improvements are a large undertaking, so be sure you know if your money and time will provide the return you seek.
Here are factors to consider to find which home improvements add the most value.
- Market health—Home renovation makes sense when selling in a sleepy market. However, a close study of the market will help reveal whether you have the time to make the renovations.
- Your timeline—The listing timeline determines the scale of remodeling projects you can undertake. Short-term projects involve refreshing some items, while longer-term renovations may take up to a few months to complete with the help of a contractor.
- ROI—Consider the renovation costs and timeline, sweat equity, missed market costs, delays, and carrying costs that may affect your return on investment. The value of a project also depends on the condition of your home, the value of similar properties nearby, and the selling costs.
- Your location—Make sure the improvements you’re making are appropriate for your home and neighborhood. Avoid improving a home well beyond the average for neighborhood properties.
The Top 3 Home Improvements to Make to Add Home Value
As mentioned earlier, some projects add more resale value than others. Here are some that offer the best financial value when we buy houses in Tyler and other parts of Texas.
Buyers are looking for modern conveniences and styles in the kitchen. Carrying out a major or minor kitchen remodel project will add value, especially in an older home.
Read Texas real estate market ads and the odd remodeling magazine sometimes. You’ll notice that many mention updated kitchen features.
Some kitchen upgrades that add reliable value and provide a return on ROI include:
- Adding a kitchen island and new countertops
- Updating, painting, or replacing cabinets
- Upgrading appliances to smart home units
Bathroom improvement projects yield big returns. Minor cosmetic changes can increase your home’s value by $1.71 for every $1 you invest.
Some bathroom upgrade projects most worth your investment are:
- The flooring
- Installing a vanity area with double sinks, especially in the master bathroom
- Replacing a tub with a large walk-in shower
Sprucing up the outdoor appearance of your home is a smart investment. Some high-value outdoor space improvement ideas include vinyl siding and landscaping.
Before carrying out any home updates, you must consider what elements will help the buyer see themselves living on the property. Consider the value a project brings over the cost recovery you hope to get from the sale.
When you have two equally useful improvements, research the Texas real estate market to determine what adds the most value to a home.
Remember, bigger does not mean better, and spending more will not always bring greater value. The price of a home reflects the tastes of local potential buyers and the amount they will pay in a specific neighborhood.