Renovating your home can turn a cramped space into a comfortable environment you enjoy living in. And if you have plans to sell your house, renovations- if done right- can raise your asking price by a significant margin. But not all home improvements promise a positive return on investment (ROI). When adding value to your home, you want to focus on improvements that appeal more to potential buyers without racking up debts or draining your savings.
Below are five home renovation projects that add value to your home without leaving you out of pocket.
Turn Your Home into a Smart Home
Smart homes are all the rave today. As smart home statistics and facts indicate, the Internet of Things (IoT) market is expected to surpass the $520 billion mark by 2027. The National Association of Realtors magazine says that close to 50% of consumers want their next home to be smart. These figures prove that automation can not only increase the value of your home but will also enable you to sell it fast. Convenience is among the major reasons most people prefer automated homes today. Automation affords you more control over various things that make up your home, including heating and cooling systems, music and multimedia devices and irrigation systems.
Smart homes provide numerous opportunities to save money too. For example, smart lights can be programmed to light ON/OFF at particular times or upon detecting motion. A smart programmable thermostat can learn your daily routine and slash up to 23% off your energy bills. In addition, smart security and safety features can save you money indirectly through reduced theft and repair costs and directly through lower home insurance premiums.
Redo Your Exterior and Interior Paint
A fresh coat of paint is one of the easiest home upgrades that add the most value. The right color choice in the right areas guarantees 100 percent ROI and a five percent increase in your home’s resale value. When repainting a house to sell, the exterior is just as important as the interior. From an exterior point of view, a new paint job will go a long way in enhancing your home’s curb appeal. A nicely painted home from the outside will attract more buyers and boost your asking price. Similarly, well-painted interiors are handy in setting the tone in different parts of the house. Note that your choice of exterior and interior paint colors is crucial to your home’s resale value. When deciding on the best colors to sell a house, it’s important to discuss with your realtor for advice on colors that make homes more sellable in your region. It would help if you stuck to light and neutral tones like gray, beige and off-white because they appeal to a broader audience.
Update Your Kitchen
The kitchen is often regarded as the heart of the home. Whether large or small, this is the center of every family’s day-to-day activities. If the kitchen is where life is lived, it goes without saying that it will be the biggest deciding factor for your prospective buyers. So it makes sense to give it several updates. If you’re renovating the kitchen before selling, remember the idea is to create the wow factor while maximizing your ROI. Kitchen renovation costs can get steep depending on the size of the project and how old your home is. Consider how much you intend to put in versus what you’re likely to recoup. If the upgrades don’t help you sell the house for more money and faster, then they are probably not worth it.
There are plenty of low-cost kitchen upgrades that can add a great ROI while attracting more buyers:
- Start by transforming it with a fresh paint.
- Repaint your cabinets and swap out out-of-date hardware with modern ones.
- Refinish hardwood floors and replace chipped tiles.
- Replace the kitchen sink.
- If your budget allows, replace your old countertops with butcher block, concrete or quartz.
Freshen the Bathroom
After the kitchen, the bathroom is the other house area that potential buyers will closely inspect when house shopping. The typical home buyer wants a spacious, calm, clean bathroom with a neutral ambiance. If your bathroom has a warm and serene environment that induces a feeling of relaxation, your prospective buyers may be more willing to meet your asking price. An updated bathroom can boost your home’s value by 4-5%. Even if you’re not planning to put your home on the market soon, you still end up with a bathroom that helps you decompress and disconnect from the world, albeit for a moment. If it doesn’t make sense to remodel the entire bathroom, focus on addressing any plumbing issues. Fixture upgrades that make the bathroom more accessible and functional like a double-sink vanity, increased storage options, a soaking tub and a hand-held showerhead will significantly increase your home’s value. And don’t forget to update your bathroom lighting fixtures with something more modern and functional.
Boost Your Home’s Curb Appeal
First impressions matter in everything- including buying a house. Your home’s high or low curb appeal sets the tone for the entire home tour. If you’ve done an excellent job with the interior, but the exterior is worn out, home appraisers and potential buyers will factor that when making their final decision. On the other hand, Consumer Reports say that a high curb appeal can increase your home’s value by 3% to 5% and help it sell faster. But which curb appeal projects increase home value? Start by giving away, tossing or recycling all the junk items in your front and back yard. If you have a lawn, mow the grass and trim the hedges. While you’re at it, remove encroaching weeds and dead plants and keep your flowers well watered and fertilized. Painting your front door and garage door, adding exterior light, and glamming up the mailbox are other quick ways of boosting your home’s curb appeal.