Home improvement projects, regular maintenance and renovations are often times necessary requirements in increasing the value of your home. There are many studies that show the return on investment (ROI) that certain projects will provide to a homeowner, but keep in mind that these returns are very generic and are nationwide. Local real estate markets can vary drastically when it comes to actual sale prices, and when you take into account labour costs that often vary by area as well as material costs, the ROI can vary substantially.
It is advisable to consider multiple factors when deciding on which home improvements to complete when you are deciding to improve your home for re-sale. Although some improvements may provide a lower ROI, there is money to be made on the other end of the spectrum which is the speed of sale. Each home is unique, and often times there are improvements that may stand out to buyers
(such as kitchens or bathrooms), but there are other factors that may actually be required simply to get the home sold (thus providing a far higher return).
If you have items that will be of major concern to buyers, home inspectors or insurance companies alike (items like old wiring, asbestos, oil tanks, mould, old plumbing, structural issues, foundation cracks to name a few), it is highly recommend to get professional advice and if required address any of these issues, prior to investing any larger amounts of money in cosmetic updates. These major issues can often be deal breakers when it comes to real estate, which in the simplest terms means that any other improvements you have made can have no return at all if your home can’t be sold, or sold within your targeted price range. Below are sometips and suggestions for general home improvements:
1. Items like fresh neutral paint (this includes stripping dated wallpaper), flooring and light fixtures can often times provide the most impact on potential buyers, and will both provide a good ROI and also aide in a speedy sale,
2. An updated kitchen and bathroom will make your home stand out from the competition, but these can be tricky areas to receive agreat return from because it is easy to get carried away with costly finishing touches. Keep your updates simple, painting dated cabinets and changing hardware can dramatically increase a buyer’s perceived valued of your home. New countertops are an inexpensive and highly effective update. New kitchen and bathroom designs require proper planning and material sourcing to get the best ROI,
3. Backsplash is the jewellery of the kitchen and if chosen properly, can dramatically enhance any space and increase the value for
very little money,
4. Trim & Doors are often ignored. Old flat panel doors and dark trim can instantly date a resale home, and despite what updates have been completed may not be fully appreciated by potential buyers, thus diminishing the buyers perceived value of the entire home. If it is not in the budget to replace these items, a simple coat of adhesive primer and white paint will do the trick,
5. An attractive entrance to a home is imperative and can hold a lot of value in terms of the speed of sale. Freshen up the entrance door, exterior lighting and the mailbox (either by painting or replacing), repair or update the concrete entrance either by patching cracks, installing exterior carpet or tiles (your home, and location will determine the best solution),
6. The flow of a home goes hand in hand with any improvement project. When completing updates ensure your paint colors are consistent and coordinate, you should never be able to see more than 3 types of flooring from any given room in the home, door handles and light switch covers should all be the same style, and floor registers throughout should be the same. These are key elements to create harmony in a re-sale home and keep buyers interested in the home, rather than questioning it.
There are also some items to take into consideration when completing updates that may not provide a significant return, if any, on the sale price of your home:
1. Whirlpool bath tubs,
2. Spa showers, often time plumbing updates are required in addition to the high cost of the fixtures,
4. Granite countertops,
5. Trendy flooring (few homes can justify the latest and most expensive styles, and these are strictly for specific buyers and may limit the amount of people that will view your home),
6. Glazed cabinetry,
7. High-end appliances,
The most important factor in any renovation or update is to complete it safely and properly. Money will be lost if any update is not done the way it should be. Once you give buyers a reason to start looking they may find more faults than you may have been aware of yourself. All of these findings come with a price tag to correct and this just may come off your asking price.
A Professional Home Stager will also be able to provide you with information on how to complete your project properly, give you design ideas to create the maximum impact, do-it-yourself guidance and advice and most importantly, help you complete everything on your list for the least amount of money. Always remember, the goal of any improvement project for re-sale is to get buyers to move-in rather than move on and to do it with more money in your pocket at the end of the sale.
Article Courtesy of:
The Staging Professionals