Which Renovations Will Increase Your Home’s Value (& Which Won’t)?
Homeowners currently in the market are all too familiar with this question: Should you renovate or sell?
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When deciding whether to remodel or list a home “as-is,” there are multiple factors to consider. In fact, there will be a 1.8 percent drop in available homes this year due to high starting prices. While ensuring sellers in the market are receiving top dollar for their homes, taking buyers’ expectations into consideration can help when making the decision.
And although it’s no surprise some properties vanish off the market while others linger for months on end, there may be a cause.
Together, Porch.com and Homes.com surveyed nearly 1,000 homeowners to find which buyers are willing to go over budget for a move-in ready home, the most common renovations homeowners make to sell their property, and which improvements might add the most value to the selling process.
The market is constantly changing. Buying a home, regardless of the condition, is a massive commitment. Porch and Homes.com found this year’s buyers favor a fixer-upper over a move-in ready home—50.7 percent of baby boomers and 56.7 percent of Gen X-ers favor an under-budget home in need of updating.
Overall, millennials prefer to do the renovating themselves, as only 37.6 percent would go over budget for a move-in ready home.
Ranking Priority Renovations
Since today’s buyer favors a fixer-upper, sellers should be inclined to focus on low-maintenance renovations to ensure the best investment. In fact, Homes.com finds 48 percent of homeowners suggest a kitchen remodel adds the most value to a home, with three in 10 homeowners agreeing a kitchen remodel is essential to get a home off the market.
On the other hand, homeowners also see importance in a bathroom remodel and retouching of interior paint. Survey respondents emphasized these renovations as best to increase the potential of a home sale.
Although homeowners believe a minor kitchen or bathroom remodel will give sellers an edge in the market, those renovations may not equate to the best return on investment.
Getting Your Money Back
Overall, doing smaller renovations to your kitchen could get you the biggest bang for your buck. A minor kitchen remodel can end up costing homeowners an average of $22,507 and net a return of $18,123 or 81 percent. Although a bathroom remodel was referred to as a “must-have” for selling potential, an asphalt roof costing around $22,000 could result in more for your efforts (68 percent) compared to a bathroom remodel (63 percent), where you’ll likely see less return.
If you’re a seller in the market looking to speed up the process, focusing on worthwhile upgrades while staying alert on the changing trends among today’s buyers might be the key.
Which home upgrades do you think are worthwhile?
Selling vs Remodeling