Are you planning to sell your home? HGTV makes it look like spending tens of thousands of dollars to rip out and renovate an entire home will increase the value of your home dramatically. No matter what renovations you do, your home will only be worth as much as the current market will allow. The value will be based on the past sale price of similar homes in close proximity to yours, meaning that unless most of your neighbors have granite countertops, upgrading yours may have little effect on the value as an example.
So how do you figure out what to renovate and what level of renovations should be done? The first step should be to interview potential real estate agents and find one that you would want to work with if you don’t already have an agent. Ask your agent to run comps for your house and look at those properties to see what countertops, flooring, appliances, paint colors, etc. were used in those homes. Discuss with your agent which, if any, renovations should be done, then figure out how much money you are willing to spend on renovations.
One of the least expensive things that you can do to your house to increase the appeal and value of your home is to repaint. You should choose a neutral color palette and keep it consistent throughout the house. Keep in mind which finishes you are keeping and choose a color that will work with those finishes. You can coordinate any new finishes with the paint color that you choose.
The first room to consider updating is your kitchen. Updating a kitchen will provide the most return on investment over the other rooms. A close second is updating the bathrooms. Then consider updating your flooring.
Flooring updates require deep consideration. Consulting with your agent on this is very important. Hardwood is almost universally appealing, but if your neighborhood doesn’t support spending the money, you will need to consider if flooring updates are worth the investment. You don’t want to make a large investment in other flooring types like carpet or tile due to the fact that so many options are available and cater to specific tastes, so you don’t want to choose something that will be a turn off for a buyer. It might be better to offer a seller concession for replacing the floors so that the buyer can choose what flooring they want.
To make interior updates worthwhile, you need to get buyers in the door. This means increasing curb appeal. Most buyers decide if they want to view a home based on photos with the listing. The first photo that a buyer sees should be a flattering shot of the front of the house, because a buyer may not look any further and move on to the next listing.
Exterior paint is important. It should fit in with the rest of the neighborhood and be neutral to appeal to the most buyers. The finish on the front door is usually the focal point and should be in good condition as well a color that draws attention while appealing to the largest number of buyers. This is another area to discuss with your agent.
Landscaping is equally important. You don’t have to spend a fortune on flower beds, etc., but you do need some plants. The important thing is to keep the lawn mowed and green. The flower beds should be free of weeds and clean. Sidewalks and borders should be neatly edged. A clean, manicured yard will increase the appeal considerably as well as make the photos look great.
Overall, don’t worry that you need to spend a fortune on renovations. De-cluttering and staging will go a long way. Working with your agent, you can create a plan that will give you the most value for your renovation budget.
