Oct. 22, 2018
My goal is to get top dollar for your home. Here are five tips to consider before putting your home on the market to maximize your rate on investment.
This doesn’t mean interior improvements aren’t important, because they are, but creating a WOW factor when folks drive up to your home can be some of the best money spent. Dollar for dollar, no improvement has more impact on the future sales price of your home than enhancing the exterior and it’s one of the easiest places to make an impact. Replacing old shutters and/or planter boxes, fresh paint, replace rotted wood, fencing, landscape improvements are all affordable fixes that do wonders for foot traffic to your home.
Another exterior BIG recoup item! Replacing doors -- main entry and garage -- can recoup 85 and 75 percent of your investment according to a study done by the National Association of Realtors. Buyers are looking for steel front doors. The good news is they're easy to buy and cost only about $1,000 installed. Garage doors are a bit trickier and slightly more expensive, but about as effective at getting your money back. And both contribute to the all-important curb appeal of your home.
Staying on the outside of your home, but moving away from curb-appeal factors, an outside wooden deck is shown to be one of the best high-dollar additions you can make, according to Fortune Builders that reports on a National Association of Realtors study. The report states that on average, a new deck will cost a little over $9,300, but will return more that $7,200 at closing time. That’s a 77% recoup of your investment.
Particularly in older homes, it is important to create modern spaces when considering selling your home. A National Association of Realtors study has found that a minor kitchen remodel will return better value (about 75% of an investment of about $19,000) than a major kitchen remodel (65% of an investment of about $53,000). So rather than replacing all of the cabinetry, a better option might be to reface the existing and add a modern countertop. Same with baths. One underestimated change is creating additional personal spaces such as adding a bedroom to unused attic space. Framing, electricity, walls, HVAC and insulation may run you about $50,000, but according to Point2homes you get about 85% of that back on sale. Plus, you get to add an additional bedroom to your listing. Attic bedrooms are great for children or guests.
Motley Fool, a well known investing site, puts energy efficiency as the #1 boosts of your return on investment. They are not necessarily referring to new appliances or solar panels, though if your appliances are in poor condition, it is worth investment in new, modern appliances. But insulation can return 116% of its cost to buy and install. Other considerations that are important to buyers, especially first time home buyers, are upgrading HVAC, water heaters, new windows. These items aren’t cheap but they are still less expensive that a completely remodeled kitchen. Plus you get the added benefit to save on your utility bills until your home sells which adds to your personal ROI.
One final comment. Instead of offering a “seller’s concession” on updates such as carpet, paint, etc ~ if you can, just do it! Those first impressions are imperative for a quick sale.