The real estate market is still a seller’s market, but there’s no reason you shouldn’t increase your home value as much as possible. While buyers are willing to take on some small cosmetic repairs, they’re less willing to invest in a home that requires major renovations of expensive spaces like kitchens or bathrooms.
If you’re trying to sell your home, investing in home renovations can not only attract serious buyers but get you a higher sale price. While you don’t want to blow your budget on aspects of your home that the new buyer will just replace on their own, making strategic renovations can offer an incredible return on investment.
Refresh Your Kitchen
Kitchens are a huge part of home value – and have a wide range of prices for renovations. You can make upgrades for just a few thousand dollars, but kitchen remodels can exceed $100,000 if you’re not careful.
Set a budget and focus on timeless designs, quality materials, and energy-efficient appliances that buyers know will last. If the “bones” of the kitchen are solid, they’re less likely to balk at small changes like a new backsplash or different color paint.
If you don’t have a huge budget to invest in your kitchen, consider minor, cost-effective changes like refinishing your cabinets, upgrading a few appliances, or swapping out the hardware for something more modern and appealing.
Redesign Your Bathrooms
Next to the kitchen, bathrooms are a crucial part of your home’s appeal. Buyers want a bathroom that’s modern, updated, and in good condition. But on your end, the investment is relatively low for a big payoff in home value.
Depending on your budget, consider turning your bathroom into a luxury spa retreat with high-quality tile or vinyl flooring, rain showerheads, and modern fixtures. Most buyers are looking for double vanities in bedroom ensuites as well.
If you’re limited and can’t swing a full bathroom remodel, minor upgrades can still make a difference. Repair any unsightly areas, upgrade the hardware, give it a fresh coat of paint, and redo the flooring with a budget-friendly but attractive option.
Replace Your Outdated Flooring
Flooring is a major home renovation that a lot of buyers may not want to take on in their new home. If you have outdated carpet or hard flooring that’s a little worn, consider upgrading with something versatile, timeless, and low maintenance, like hardwood. It offers a classic look, it’s easy to clean, and it works well with just about any décor or style.
If hardwood or new flooring isn’t in the budget for your whole home, think about the areas where you can upgrade the flooring. For example, do your bedrooms have carpet? Is your bathroom tile looking aged? These are good rooms to start when it comes to redoing your flooring and getting more value out of your home.
Consider an Open-Concept Living Area
Depending on the design of your home, taking out walls and creating a sightline from one space to another – particularly the dining room and kitchen – can have significant return on investment. In most cases, it will increase the value of your home.
With no walls between the kitchen, living room, and dining room creates connections and makes your square footage airier and more usable. The new owner can make the home their own, creating different spaces as their needs change. It’s also more accessible for people with mobility concerns.
The downside is that open spaces are more expensive to heat and cool efficiently. Your new owner – or you if you’re keeping your home for a while – will have higher energy bills. There are no walls to block sound, either, so conversations, loud music, and other noise will travel through the space.
Make Use of Unused Basement Space
An unused basement has the potential to improve your home’s square footage and offer more living space. This is especially important if your home is small. Many buyers want a finished basement that they can put to good use as a spare bedroom, extra living room, or den.
In addition, with so many people working from home at least some of the time, a basement is a great spot for a home office. It’s quiet and away from the main living areas for fewer distractions and more privacy, and most basements offer a lot of open space.
Fortunately, a basement upgrade is a simple and relatively inexpensive upgrade. Focus your budget on insulation, ventilation, and lighting. If there are moisture issues or exposed appliances like a furnace, make sure they’re addressed with the renovation.
Make Energy-Efficient Improvements
Many home buyers are concerned with energy efficiency, not just for cost savings but the environment. Upgrading your appliances to energy-efficient options, such as swapping fossil-fuel burning appliances for heat pumps or other efficient options can offer impressive returns.
In addition to appliances, think about other ways to improve efficiency like upgrading your lighting to LED, installing energy-efficient windows, and repairing insulation throughout your home. If there’s room in your budget, you can fully go green with solar panels, tankless water heaters, and a smart thermostat.
Increase Your Home Resale Value with Smart Renovations
If you’re listing your home, planning a few renovations can make a huge difference in its appeal for buyers, and ultimately, your sale price. These renovations offer the highest return on investment to ensure that you can put your money to work for you and get the sale.
In collaboration Michael Alladawi
Michael Alladawi, CEO & Founder of Revive Real Estate, is a Southern California real estate veteran with a proven track record as a builder, investor, and respected home flipper. Michael created Revive Real Estate to share his industry knowledge and help homeowners maximize their profits when selling their homes. Michael’s passion for his work is as big as his desire to create lasting partnerships. For Michael, it all comes down to how much value one offers, both in business and life relationships.
