Lately, I’ve had a lot of homeowners asking about what projects and renovations they can do in their home that will give them a good return when they decide to sell. Today I’d like to give you a list of some of the best (and some of the worst) renovation projects for boosting your home’s ROI.
First, you need to answer a few questions for yourself. Are you making these updates because you want to live in the property longer, or are you making them strictly because you want to sell the home, add value, and get your money back?
The reality is that there aren’t a lot of projects that will give you 100% of the money that’s invested back to you. However, here are three of the projects that will give you the highest return and help you sell faster when the time comes:
1. Garage door replacement. This will get you a 98% return on average. The garage door is really the face of your house and if it’s old or dirty, it will give buyers a bad first impression.
2. Entry door replacement. This will get you a 92% return on average. This is one of the first things buyers notice in a home and can also make a bad impression if it isn’t taken care of properly.
“A patio addition won’t bring a great return, but a new garage door will.”
3. Deck additions. These will get you an 83% return on average.
Now, here are some renovations you should avoid if you’re trying to make them right before you sell:
1. Patio addition. This is only going to get you a 43% return on average.
2. Master bedroom additions. This is only going to get you around a 50% return on your investment.
3. Major kitchen remodel. A minor kitchen remodel will give you a pretty decent return (in the 80% range), but a major remodel is only going to get you around 55% back on your initial investment.
Keep in mind that these numbers are all averages. If you’re thinking about making any renovations before you sell or when you invest in a home, don’t hesitate to give us a call or send us an email. We would love to discuss things further with you and how you can ensure that you spend your money wisely. I look forward to hearing from you soon.