Home sweet home can also be a means of making money if you make some smart choices about adding value to your home. Well-planned, targeted home improvements increase the sale price of your home. So, if you want to make changes that add value before a sale, read on. We’ll cover which remodelling projects can add the most value to your home and offer the best return on investment, in our opinion for increasing your profit margins and your home’s saleability.
Guest post by Elizabeth Shields. Photo by Scott Webb
Consider Buyers Tastes and Needs
Whilst some of us can easily be distracted by purchase buys of attractive interiors, fixtures and fittings, it pays to be a bit savvier if you are making home improvements to add value to your house. Avoid opting for designs and additions you find visually attractive that are tailored to your tastes. Instead, aim to put aside ideas of what you like and instead consider what will give you a reasonable return rate on your investment. Consider your potential buyer, their needs and what it is they might be prepared to pay top dollar for.
Stone Veneer: A Savvy Investment
According to Remodelling Magazine, the most cost-effective home improvement in 2020 was adding manufactured stone veneer to the outside of your property. Costing an average of $9357 to install, these home improvements added an average increase of $8943 to a home’s value, recouping over 95% of outlay costs. Importantly, manufactured stone veneer can increase a property’s curb appeal making your house more attractive to prospective buyers. It’s also cheaper to install than replacing the existing siding with vinyl or the more expensive fibre cement. Consider pro-fit Alpine ledgestone for a sleek modern aesthetic or River Rock for a more organic and timeless look. Stone veneer improves your property’s visual appearance and offers maintenance-free and greater fire-resistant than wood or vinyl siding.
Lifting the Lid on Garage Improvements
There are plenty of other external home improvement options to consider as value adds. Replacing garage doors comes out as the second most cost-effective home improvement for 2020. With an initial outlay of $3,695, the average money recouped from this improvement in 2020 was close to 95%. You can keep the initial outlay down by reusing existing motorised opener mechanisms. The Clopay Classic Collection offers style at a sensible price.
Many people also focus on their property’s first impressions by ensuring windows, doors and driveways are kept clean. Whilst replacing windows might seem tempting and will help with insulation, they are an expensive improvement that only offers a return of between 68.9% and 72.3% return on investment. So, concentrate on keeping your windows and frames clean and tidy and save your cash for other more lucrative projects. Take time to repaint wooden frames if needed, which will provide an instant lift without the costs of replacing them.
Gardens that Add Value
And, when we think about curb appeal, don’t neglect your garden area. Ensuring front and back lawns are kept in pristine condition. Trim and shape any large shrubs that need a bit of TLC. These jobs cost nothing other than your time and help with that all-important first impression. A 2019 Home Light survey showed over 94% of real estate agents thought curb appeal added financial value to a property and was the number one fix for saleability. A few more plants can easily add colour and interest, and setting up decking furniture can show potential buyers how your outdoor space can be used for relaxation and family time. Consider if a new deck is worth your while – you will be likely to recoup 72.1% of your initial investment.
Interior Improvements: Less is More
So, we’ve considered smart exterior home improvements to complete with a view to selling. Now we turn our attention to interior options. Remember that home improvement trends are ever-changing and when and it is always worth keeping abreast with changing tastes over the years. Kitchens are an essential room in any house and will be of interest to potential buyers. Nowadays, many buyers are interested in family-focused kitchens that provide far more than simple spaces to cook in. According to the Houzz and Home survey, remodelling kitchens is the most popular home improvement in the US. However, when it comes to return on investment: less is more. The remodelling data shows a minor kitchen model is likely to bring more than a 77% return on investment, where a major refurb’s return will provide somewhere close to a 40-50% loss on your investment. There are similar figures when it comes to bathroom renovations. Aim to make changes that provide that all-important refresh without costing a fortune. Painting cabinets or replacing door fronts is cheaper than installing new units.
Replace handles with attractive, on-trend options, install funky lighting fixtures and repaint in light colours to add freshness and style. You might also consider investing in statement furniture for your kitchen that shows how you can use the space to great effect and let you take your prized chairs and tables with you when you move.
Floors that Increase Value
Flooring is another option to consider for savvy internal improvements if you want to add value. Wooden flooring can add up to 10% to the overall sale price of your home. It’s worth considering whether hardwood or other flooring options might be a sensible investment. To ensure you maximise potential profits, keep flooring consistent throughout the property and certainly avoid different floor types meeting in high-traffic areas.
Takeaways for Value-Add Home Improvement
We’ve seen that adding value to a property is a matter of the head rather than the heart. Take note of the margins of profit and likely return on investment before splashing the cash. Aim for some well-researched improvements that add value. Curb appeal will be important, as well as laid-out interiors that showcase living space. Don’t fall into the common trap of spending a fortune on bespoke kitchens and bathrooms.
Aim for stylish improvements that add value without excessive cost. And, above all, when it comes to real-estate viewings, keep your home clean and tidy to ensure your hard work and investment is shown in all its bright and shiny gloriousness.