For most homeowners, the idea of renovating an outdated home in order to sell it for a higher price sounds overwhelming. What will the out-of-pocket costs be? What are the important renovations to consider? Which renovations are inconsequential and won’t affect market value? Will the investment result in a high enough return?
Home renovations can be an effective strategy and smart investment when looking to sell your home, because renovated, turn-key homes sell more quickly and at a higher price than outdated homes. There are a variety of fresh and creative ways, both big and small, to achieve the goals of increased functionality, visual appeal and resale value. From our experience, kitchens and bathrooms are the best areas to renovate to increase the return on investment.
· Kitchen – Your kitchen is the most utilized room in your home, a place where families and friends gather for daily meals and holiday celebrations. The kitchen space, now more than ever, serves as a central gathering point and an extension of living and family rooms, the so-called great rooms. According to the Zillow Digs Home Design Trend Report for 2014, kitchens top the list of spaces homeowners plan to remodel in 2014. When making the investment in updating your kitchen, the key is to focus on what you will enjoy most and also appeal to future homebuyers.
· Bathrooms – After the kitchen, buyers look to the bathrooms for updates, or the potential cost involved should the buyer want to make updates after the purchase. By completing the upgrades prior to selling, you allow the buyer to finance those improvements, and the buyer will pay a premium with the current interest rates.
A new infographic from the California Association of Realtors shows that homeowners can expect to recoup 60 percent to 120 percent of the investment on a kitchen remodel, as long as the homeowner doesn’t go overboard. Bathrooms are another area where homeowners can recover a large chunk of the investment. When adding a bathroom, homeowners can expect to regain 80 percent to 130 percent of the cost of adding a bathroom.