As of September 2022, houses in the US have lost 1.3-10% of their sales price. The housing market is declining, but the right home upgrades can still see your house sold at a large profit.
To increase the home resale value, upgrading and updating the kitchen and bathroom are the most effective options. Besides these, adding a deck, increasing curb appeal, and finishing up the basement can provide over 70% ROI.
The ideal way to upgrade your home is to do just enough and no more. Going overboard can seriously harm your home’s resale value. So, I’ll tell you about 5 upgrades that will increase your home resale value the most and briefly talk about what not to do at the end.
Upgrade The Kitchen And Bathrooms
Upgrading the kitchen and bathrooms can increase home resale value by 10% or more. 43% of buyers are swayed by kitchens and bathrooms with modern amenities and modernized, neutral looks. Take a look at these Boise high-end homes, for example, and note how these two improvements have raised their value.
To ensure that your kitchens and bathrooms are highlighted in any walkthrough, you can try these 7 suggestions.
- 77% of experts emphasize good flooring to be the most desirable feature. Natural stone tiles, hardwood, granite, and porcelain tiles are favorites and can add a lot to the aesthetic.
- Update your kitchen and bathroom wall colors to more neutral tones like white, beige, cream and grey.
- Check if your plumbing is working as intended, and repair whatever’s needed. Change your faucet, kitchen sink, and shower heads for sleeker versions with water-saving, maneuverability, and other functions built in.
- Go for minimalistic, smart, power-saving appliances that have features like automated cleaning or wireless activation. Most areas like unique amenities or features in a kitchen, such as Portland’s adoration of composting. So, look at other local listings to see if you can add something and match the competition.
- Reface your cabinets. Completely replacing them will cost more than raising the home value, so update your cabinet faces to match the neutral modernized theme.
- Replace your laminate countertops with granite, slate, tile, concrete, or stainless steel. Upgrade to a composite countertop to achieve a granite look for cheap.
- Over 58% of buyers appreciate a bathtub, even if only for washing children and pets. Adding a one- and half-person bathtub is the most cost-effective but appealing option.
Whatever you do, don’t add a new bathroom. It will only recover 62% of the cost over time. While updating your current bathroom will instantly provide at least a 71% ROI.
Stack The Deck
Just after kitchens and bathrooms, buyers prefer homes with decks. $13,084 decks in Seattle increase the home resale value by 106.7%, and $19,277 composite decks generate 122% ROI.
A deck will cost you only $15-30 per square foot, whereas adding more rooms to a house will cost over $122 per square foot. It’s a cheap and easy way to open up the space and increase the living area.
For luxury homes, cedar decking is an affordable yet beautiful and durable option. Quality heartwood decking will outlast standard pressure-treated wood and only costs $9-11.50 per square foot.
Add To The Curb Appeal
Buyers are likely to pay 7% more for a house if you have a great exterior. Curb appeal is most appreciated in the Northeast, where you can get over 309% ROI if you work on the home exterior.
You don’t have to spend much at all to increase curb appeal. It’s possible to keep your costs under $4,000 and easily increase the home resale value. If you want over 100% ROI instantly, try these 3 ideas.
- Maintain your lawn. Just cutting grass, applying fertilizer, and killing weeds will have a 539% ROI.
- Replacing your garage door with a silent, modern one will only cost up to $1,200 but provide a 133% ROI.
- Cleaning up and repainting your home exterior can have an ROI of 146.06%. Pressure washing your exterior along with the driveway, sidewalks, deck, or patio will cost about $295 but appeal to 10% more buyers. Repainting your door white will attract 24% more buyers, while a fresh coat of paint for the entire exterior will raise the home price by at least $4,000 more.
Stone veneers, reinforced doors, and modifying exterior walls are good options, but they provide less than 100% ROI. For immediate sales, these upgrades aren’t worth it.
Finish The Basement
The basement adds more effective space for your buyer to live in, and it’s a blank canvas they can modify. Completed but unmodified basements can attract 30% more buyers, and raise the house asking price by $40,400-$50,000.
Finishing a 700-square-foot basement will cost you around $16625, and this is all-inclusive. Undertaking the project will provide you with an 80.45% ROI.
Conclusion
Even for luxury houses, futureproofing and convenience take priority over extravagance and lavishness. Don’t add pools, modify walls, add Smart HVAC or guillotine windows if you’re selling right away. You can only recover up to 65% of the cost over the years, but it won’t increase the value of the house any more than 5%. Stick to what’s tried and tested, and observe your market trend to sell for the best price possible.
