Living in a comfortable home with the details that make you love the space every day is important to homebuyers, especially military homebuyers, who need to squeeze out every bit of enjoyment before the next set of PCS orders arrives. However, knowing that selling your home is a definite possibility, choosing renovations that both you and your future buyers will appreciate can be challenging if maximizing your sale proceeds is your top priority.
So what are the best renovations to do before selling your home, and which ones won't be the best return on your investment? You might think the more updates you make, the higher the value of the home. But that's a wrong assumption. Whether listing as a For Sale By Owner (FSBO) or with a real estate agent, here are some updates you might want to make before selling your home.
The Golden Rule of Home Renovations
First, the golden rule for updates is to pay attention to the principle of conformity and not over-improving beyond what your neighbors have updated. Beyond that, investments in priority order are to focus on the kitchen and then the primary bathroom.
1. Kitchen Updates
For better or worse, the kitchen is almost always the focal point of the home. Your family spends most of their time here, and guests most often gravitate toward the kitchen during visits.
Investing in a kitchen remodel that includes appliances, cabinets, countertops, and flooring pays for itself in the long run. Not only is there a high return on investment, but a kitchen remodel is not considered high risk for over-improving since every home has one, and many buyers are looking for a move-in-ready showpiece.
2. Attention to the Primary Bath
What’s the second most used room in the home? The primary suite! And it deserves some love, too.
While primary bathrooms are becoming more common in homes, many older homes lack an en-suite bath. For those of you who have one, pay extra attention to this highly sought-after amenity.
Update the countertops, cabinets, flooring, and possibly the tub. Just like the kitchen, you don’t run the risk of over-improving your home beyond your surrounding neighbors when you remodel the primary bathroom. In fact, an updated bathroom will help sell your home—especially if it's higher-end than the others in the community.
Learn more: Target These 3 Things for Highest Home Sale ROI
3. Home Maintenance Upgrades
Upgrades throughout your home’s lifespan that keep it safe and durable yield a high return on your investment. Updating the roof or plumbing, especially if you live in an extreme climate, can save you from potentially huge costs and pay off when it's time to sell.
Consider improving insulation, windows, or the garage door to attract buyers who recognize the value of these upgrades and are willing to pay for the added security.
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4. Improvements That Increase Curb Appeal
Minor exterior renovations are a good idea since they boost your home’s curb appeal. Need some ideas? Apply a fresh coat of paint, replace old siding, update your front door, or invest in landscaping. These projects pay for themselves when it comes time to sell your beloved home.
Look around your neighborhood to learn the community’s standards. If your improvements put the house far out of the typical landscaping and house exteriors, you will likely lose money and gain little value.
Home Renovations That Don’t Always Pay Off
Home Additions
While adding extra space to your home might have been worth it while you were living there, buyers might not agree that the addition equates to your asking price. Again, take note of the homes around yours and their add-on projects.
Experienced real estate agents often advise against purchasing a home with the largest or smallest floor plan in the neighborhood. If your addition bumps your house more than the average size, you probably won't recoup your money when it’s time to sell.
Bells and Whistles
Your instinct might be to update every room to maximize your profits on closing day, but that's not the best plan. For example, if you own property in an older, more developed neighborhood, chances are the people interested in buying your home are those who want to make their own modifications. They could be motivated by lower price points or have an interest in buying a fixer-upper home because they enjoy improvement projects.
If your home leaves little room for personal updates and the asking price is high for your area, the group of buyers who prefer buying a home "as is" will keep looking. Remember, if they want a bells-and-whistles type house, they're likely to start their search with newer properties. Understand your home’s limitations and embrace them.
Swimming Pools
Investing in a swimming pool isn’t always a loss, depending on how much enjoyment your family gets from it before moving. However, it's important to know your future buyer pool and evaluate your neighbors’ backyards.
Are pools common, like in Florida or Arizona? If so, it's probably safe to move forward with that project. If they're scarce, there are likely reasons why. This could include a predominant buyer group that prefers a low-maintenance home.
Before you begin your next renovation project, decide if you are remodeling for current comfort or for resale value. If resale value is your top priority, are they the best renovations to do before selling? Consider the probability of your return on investment and start your renovation from there.
Need more advice before listing your home for sale? Download our free home selling guide below.
