Upgrades that pay
(and don't pay) off
If you are thinking about selling your house, or at least doing some renovations to increase your investment for sometime in the future, take heed. There are numerous ways to boost a home’s worth, ranging from simple upgrades to major renovations. The key is to focus on projects that provide the best return on investment (ROI), while enhancing the home’s appeal to potential buyers. Here are some of the best ways to increase a home’s value.
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Upgrades that pay OFF
Curb Appeal Enhancements
First impressions matter, and the exterior of a home is the first thing potential buyers see. Enhancing curb appeal can significantly impact a home's value.
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“It’s all about curb appeal!” says Realtor Dorrie Love. “Having a well-manicured yard is your best opportunity to make that first impression when people pull up to your home. Fresh mulch, trimmed hedges, colorful plants, and pressure-washed walkways and porches provide a welcoming effect.”
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Other simple updates, such as painting the front door, adding new house numbers, and installing outdoor lighting create an inviting atmosphere. If the driveway or walkway is cracked, replacing it adds to the home’s attractiveness. James Margrave of Margrave Concrete adds, “There are decorative options such as flagstone, stamping or pavers that can really make your driveway, walkway or patio stand out and look more attractive. Resurfacing concrete tends to be much like wallpaper that can peel, fade and reveal all the original cracks.”
Updates to Kitchens and Bathrooms
“Modernizing kitchen and baths is very attractive to potential purchasers,” says Dorrie Love. “Appraisers take those updates into consideration when comparing to homes that have not been updated.”
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Updating either can provide a substantial ROI. Giving kitchen cabinets a fresh coat of paint or new hardware is budget-friendly. Even minor improvements, like upgrading the faucet or lighting fixtures, can make a noticeable impact. More expensive is replacing outdated appliances with energy-efficient models and installing new countertops and backsplashes. In bathrooms, update fixtures, re-grout tile, and replace old mirrors. If the budget allows, install a new vanity, a frameless glass shower, or add a soaking tub. Improved lighting and proper ventilation also add to the functionality and appeal of the space.
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Flooring Improvements
Replacing old carpeting with hardwood, luxury vinyl plank, or tile can dramatically improve a home's interior appeal. Hardwood floors are particularly desirable and offer a classic, high-end look. At the least, deep clean carpets or refinish hardwood can to make a significant difference.
Energy-Efficient Upgrades
Energy efficiency is increasingly important to homeowners and buyers. Installing energy-efficient windows and doors can reduce heating and cooling costs while improving the home’s insulation. Upgrade to LED lighting, add a smart thermostat, and install solar panels. Even smaller upgrades, such as weather stripping and better insulation, can improve a home's energy efficiency.
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Smart Home Features
Adding smart home technology can make a property more attractive to buyers. Smart thermostats, video doorbells, security cameras, and automated lighting systems provide convenience and security.
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Basement or Attic Conversions
Unfinished spaces like basements and attics offer an opportunity to add livable square footage. Converting these areas into a guest room, home office, or entertainment space can increase the home’s functionality and value.
Upgrades that DON'T pay OFF​
When homeowners look to improve their property's value, they often assume that any renovation or upgrade will lead to a higher resale price. However, some improvements can actually have the opposite effect. Here are some of the worst ways to try to improve a home’s value.
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Overly Customized Renovations
One of the biggest mistakes homeowners make is adding highly personalized touches that appeal only to them. Custom built-ins, elaborate murals, themed rooms, and excessive luxury features may suit the current owner's taste but can alienate potential buyers. For example, turning a bedroom into a home theater with permanent fixtures may make it difficult for buyers to envision using the space differently.
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Converting Bedrooms into Other Spaces
Reducing the number of bedrooms in a home is almost always a bad decision. Losing a bedroom often means a home will fall into a lower price bracket, making it harder to sell at a competitive price.
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Over-the-Top Landscaping
While curb appeal is important, extravagant landscaping can be a deterrent. Overly complex gardens, koi ponds, or large water features require significant maintenance and can be seen as a burden rather than a benefit.
Poorly Executed DIY Projects
Attempting to save money with do-it-yourself projects can backfire if the work is not up to professional standards. Uneven tile work, improperly installed fixtures, or amateur carpentry can make a home look poorly maintained.
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“We’d all love to think we’re Chip and Joanna Gaines,” says Dorrie. “But the reality is that very few of us are. Know your limitations and don’t short cut your home projects. Hire licensed and insured professionals to make sure they’re done right.”
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Adding a Swimming Pool
“I always tell my clients who ask me about the value of a swimming pool: install a pool if it’s going to bring enjoyment to your family and improve your quality of life,” says Dorrie. “Do not make the mistake of thinking that the price you paid to add a pool will be recovered when you go to sell your home. Today, the cost of concrete is sky high. Paying $150K for a pool will not add $150K to your home’s value. You’d be better off buying a home that already has a pool installed.”
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Excessive Smart Home Technology
While smart home features can add convenience, too much technology can be overwhelming and unnecessary. A fully automated home with complex systems for lighting, security, and climate control may turn off buyers who are not tech-savvy. Additionally, tech features become outdated quickly, making them a poor long-term investment.
Garage Conversions
Converting a garage into a living space, such as an extra bedroom or home office, may seem like a good idea, but it often reduces a home’s overall appeal. Many buyers prefer a functional garage for parking and storage.
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Luxury Upgrades in a Modest Neighborhood
Spending a fortune on high-end renovations in a neighborhood of modest homes is a common mistake and will not necessarily lead to a higher selling price if surrounding properties do not support that level of investment.
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Removing a Bathtub
Many homeowners, especially those without children, may choose to remove a bathtub in favor of a large walk-in shower. A home should ideally have at least one bathtub to appeal to the widest range of buyers.
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Renovations are important when selling a home, but it is essential to first research market trends and consider whether the changes will appeal to the broadest range of buyers.