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When discussing the strategy for selling a home, the most commonly asked question I receive from sellers is which home improvements should be done before listing. As your agent, my goal is to get the maximum dollar amount as quickly as possible for your home. Therefore, every dollar towards a remodel matters. Assuming that the home needs no major mechanical or structural repairs, I will recommend the remodels with the highest return on investment (ROI) along with the most buyer appeal.
The National Association of the Remodeling Industry teamed up with the National Association of REALTORS to survey homeowners about several different home improvement projects and the return on their investment. This report is very helpful in deciding which projects to take on – and which ones to skip – before listing.
Here are some of the best and worst remodeling pay offs:
1) Roofing
A home inspector told me that the two most important things in a home are the top and bottom of it: the roof and the foundation. If those are solid, everything in between can be worked with. The average cost of a new roof is $7500 and gives a 109% return on investment. With such an excellent ROI, replacing an old roof before listing makes financial sense as well as appeals to discerning buyers.
2) Landscaping
Maintaining the landscaping has a nice pay off. Fresh mulch, regular lawn mowing, tree trimming, and flower and shrub planting has a 100% return on an investment of $3000 annually. Nice landscaping will get noticed before the buyers even enter the home. And first impressions are everything.
3) Hardwoods
Buyers love hardwood floors. When I show a home with shiny wood floors, whether new or original, I can count on the ooohs and ahhhs that will follow. Adding new hardwoods will bring a 91% ROI. If you refinish the floors already in the home, count on a 100% return on your $3000 investment. Do it!!
4) Kitchen
Buyers love a fancy new kitchen, perhaps more than anything else about a home. If you plan to stay for a while after you remodel your kitchen to enjoy it, it just makes sense. But if you plan to put it on the market as soon as the remodel is finished, you will have to determine how much of an investment is worthwhile. A complete professional kitchen remodel could cost $65,000 with a 62% pay off. But if you need your home to be more competitive in the market, a kitchen remodel is where it’s at.
5) Pool
If you have a pool, hopefully you have had years to enjoy it. If you don’t already have one, don’t add one just to appeal to buyers. (Especially if you live in Buffalo. Not that we don’t have amazing summers, but you know what I’m saying…) Adding a new pool can cost $58,000 and only give you a 43% return on your investment. If you want to go for a swim, make a friend with a pool and head on over to their house.
If you are planning to sell, let’s sit down and talk through your options. We will determine which updates are in your best interest to take on before we put your home on the market. I know that every dollar matters. I’m here for you.
