Increase Your Home's ROI When Selling, With These 8 Renovation Tips

When preparing to sell, every homeowner wants to increase the value of their home in whatever ways they can. Methodical updates and upgrades that have been well planned out prove to be fruitful as home renovations, on average, provide a 70% ROI. However, not every renovation is exactly the best option. For example, while high-end kitchen remodels and flooring upgrades are popular, making major (and costly) changes like that typically don’t have the highest return on investment (ROI). Read on for a list of some of the projects that will help you maximize your ROI. 

 

*All cost and ROI figures based on 2021 data. 2021 saw historic cost increases for many industries due to supply shortages, so during "normal times", you can typically expect the ROI for most of these projects to be higher. You can find a complete list of the returns on home renovation projects here.

 

One of the best investments you can ever make in your home is a garage door replacement. Replacing old garage doors with higher-end options is such a worthwhile expense because it can add significant curb appeal to your home, as well as offer new buyers a garage door with durability and longevity. Not only do first impressions matter, but the fewer things a buyer has to worry about, the better.

There's a plethora of door options these days, allowing a homeowner to get creative with what they pick- but it's important to make sure the door you pick is in the same style as the house so that you get a cohesive, appealing look. For a traditional home, wood is great. When it comes to modern homes though, you can consider more unique (and sometimes more durable) options like fiberglass or steel. With an average cost of a high-end garage door being $3,000-$4,000 and an average ROI of 94%, garage doors are truly a magical update you can make to your home.

 

This update is mostly for aesthetic purposes, but trust us, it can make a world of difference for your home. Manufactured stone veneers add a look of elegance and refinement to any home, and, of course, increase the curb appeal. Long lasting and durable in even extreme weather conditions, this can be a great option for homeowners in a variety of climates throughout the country. The price can seem costly ($8,000-16,000 range), but in comparison to other cladding systems, stone veneers are very cost effective, especially when you make up to 90% of that back on the ROI.

 

Full blown gut remodels may seem very enticing, but when looking solely at the ROI, they’re not the best project to take on. The idea is to go for smaller items that make a bigger impact, because most buyers don't want to "pay for someone else's remodel".

 

Investing in just a few key items-new appliances, countertops, or backsplashes, for example, will not only keep your costs down, but it will also be far more appealing to buyers who can now avoid having to decide whether or not they want to rip out a brand new kitchen just because it's not their style. With an average ROI of 72%, you're better off sticking to the basics. 

 

A durable and attractive way to update your house is by replacing old siding with fiber cement (also known as Hardie board) or luxury vinyl siding. Both options make maintenance easier and ensure that the house itself is better insulated and protected from the elements.

When comparing the two options, both have their merits and nearly identical returns with fiber-cement at a 69% ROI and vinyl siding at a 68% ROI. However, fiber cement costs more, so if you’re on a tighter budget, the $16,500 average cost for vinyl siding will be easier to cover than fiber cement's nearly $20,000 average. 

Bathroom renovation can be tricky. Some places in the country go crazy for them (namely the Pacific region), but other places don’t care as much. However, if your bathroom is out-of-date and sad, go for it. After all, you'll get the benefit of enjoying a new bathroom as well as receiving a return on it later, even if it’s minimal. Luckily, returns on mid-range renovations are reasonable, with an average ROI of 60%.

 

If you're only going to update one bathroom, make sure to spend your money wisely and go for the primary bathroom versus a secondary bath or powder room. This is where it'll make the biggest impact on buyers and where you'll also see the strongest return.

While everyone loves having an abundance of natural light, windows can also be a great concern when it comes to insulation, so having top-notch, new windows before you sell your home can be a high priority. Replacing them can be pricey, as vinyl windows run, on average, $100-$900 per window and wood $500-$1,300 (sometimes more), and with the typical home having an average of 22 windows, that can mean about having to spend between $18,000-$24,000. However with that comes an average ROI of nearly 69% on vinyl and over 67% on wood, not to mention the priceless peace of mind it gives buyers who are considering purchasing your home. 

 

Updating your windows also allows you to refresh the look of your home by adding modern touches to it, such as black-framed windows, which have become increasingly more popular over the years. It used to be that the only way to get this look was to purchase (very expensive) steel windows, but these days there are plenty of black vinyl and painted wood options as well, giving homeowners a wide range of choices to pick from.

 

Your basement doesn't have to be a dark, forgotten about corner of your home. In fact, finishing out a basement thoughtfully can really breathe new life into your home. It might seem like a huge undertaking, but when you go to sell, doing so can be a crucial differentiator between your home and others on the market. A finished basement brings in an average ROI of 70-75%. The high return can be attributed to several things, such as being able to add an extra bed and bathroom, the relatively lower cost of materials (ie, flooring) required versus above ground spaces, giving your home extra square footage of living space, and of course- more storage space.

 

You can also get more creative with basement spaces, potentially creating a home gym or theatre, adding a patio if it's a walkout, making a game room or play area, or in today's crazy world, dedicating a much needed work from home space. Adding in a wet bar is a popular choice that allows you to entertain freely without having to constantly run back up to the kitchen. The possibilities are endless and buyers love having the extra finished space precisely for the flexibility it offers.

 

With the rise of Covid came the need for more outdoor space, and while outdoor space was always a plus when it came to buying a home, today, it commands a serious premium. Your outdoor space doesn't have to be significant, but it needs to be done well. The goal is to create an environment that draws you in and feels like an extension of your home.

 

Regardless of whether you choose to go with a composite or wood deck, you'll be glad (as will homebuyers) that you added one at all, especially when you look at the ROI. A well-built wood deck can get you an average ROI over 65%, and composite isn't far behind at 63%. Aside from maintenance, the next biggest difference you'll notice is the cost. Wood decks will run you somewhere in the $15,000-$17,000 range on average, whereas composite will be $21,000-$23,000. However, the price increases on lumbar these days is no joke, so you'll want to make sure you've done your research before deciding which direction you want to go in.

Are you ready to sell your home and want to know the best investments to make to get top dollar? Reach out to your trusted local agent, Homaira Karimi, for expert guidance.