With uncertainty in the residential real estate market, many homeowners are considering renovations in anticipation of selling their home when the housing market pressure eases. So is renovating your home something you should consider if you plan to sell in the future?
The answer to this depends on a few factors, including the condition of your home, what renovations are needed, and what potential buyers are looking for. Generally, making any immediate repairs or updates is a good idea to ensure your home is marketable. This could be as simple as a fresh coat of paint or an updated kitchen or bathroom.
You should assess the cost and potential return on investment if the home requires more extensive renovations. It may be beneficial to make some renovations to increase the value of your home before selling it.
If you decide that remodeling is the right choice for your situation, below are four renovations that will add value and two to avoid.
For most people, the kitchen is the centerpiece of a home. It’s where you spend the most time gathering with friends and family, sharing meals and conversations, and starting or ending your day.
Therefore, a comfortable and convenient kitchen layout can be a solid foundation for a home and an attraction for buyers. For this reason, it’s one of the first renovations to consider in your home.
In our Southeast region, minor kitchen remodels (a facelift and new appliances) can cost approximately $27,000 and have an ROI of 68.6%.
Clean and modern bathrooms are another focal point buyers seek out.
According to the Houzz and Home 2022 home study, guest and primary bathroom renovations were the most popular among homeowners behind kitchens. According to the study, 30% of new homebuyers remodeled their bathrooms.
In our Southeast region, bathroom remodeling can cost an average of $25,000 and have an ROI of 55.1%.
New Garage Door
This one may be surprising to you. According to remodeling.com, which does extensive research on remodeling trends and costs, new garage doors had one of the top ROIs for home investment at 92.1%. An average garage door replacement costs close to $4,000 in the southeast region. Therefore, it’s one of the few home renovations that recoup close to 100% of their cost.
New garage doors add an excellent boost to curb appeal. But they also can add a security element to the home, and a properly sealed garage door can help with energy efficiency.
Windows, like garage doors, might be an unexpected top-value add option for remodeling. However, new windows have a 65.4% ROI. In our Southeast region, new windows can cost an average of $20,000 for vinyl windows.
New windows appeal to prospective buyers because they can boost energy efficiency, increase security, and help soundproof your home. Likewise, the right windows significantly improve the aesthetics of a home and boost the curb appeal.
Renovations to Avoid
While a thoughtful home renovation can increase the value and attract potential buyers, there are a few to consider avoiding if you plan on selling your home in the near term.
Swimming pools are certainly welcome in the hot summer months here in Atlanta. Still, they can often detract buyers due to the high cost of maintaining them.
Likewise, if you combine bedrooms in your home to increase a bedroom size, that could potentially decrease the value of your home because, in general, buyers prefer more bedrooms in a home.
Overall, if you are considering remodeling your home but also plan on selling in the near to intermediate term, consider making renovations with the highest ROI. Likewise, avoid hyper-personalization and too much customization, as your tastes may differ vastly from future buyers.
If you are considering selling your home, I would be happy to work with you and help you think through what renovation would be best for optimizing your home value. Please contact me if you are interested in buying or selling a home in Atlanta.