Homeowners who want to sell in the future sometimes think they need to make significant upgrades to get as much money as possible. If you plan to sell your house down the road, you will want to make it appealing to prospective buyers, but that doesn’t mean you have to make major changes. In fact, smaller projects tend to have a higher return on investment than major remodels.
Why Minor Upgrades may Pay Off More
Home improvements will increase your house’s value, but the percentage you can recoup when you sell your house will typically be higher for less expensive projects. Painting walls, replacing flooring, installing new countertops, replacing exterior doors, and adding more insulation in the attic will likely generate a high ROI when you sell your house.
Buyers will pay more for a house with new appliances and updated amenities, to a point. Major remodeling projects, such as a complete kitchen or bathroom upgrade, will increase your home’s value, but when you compare the amount you can expect to recoup to the amount you will spend, the percentage will likely be lower than the ROI for a smaller project.
When it comes to building an addition, how much it will pay off will depend on the type of space you add and how well it blends in with the rest of the house. A family room will generally have a higher ROI than a gym or home theater. An addition that doesn’t fit with the existing roofline and looks like it was obviously not part of the original design may be a turnoff for buyers.
Make Home Improvements That Will Appeal to Buyers in Your Area
Sometimes homeowners make the mistake of renovating a house and improving it to make it better than others in the neighborhood. They may think that will help them attract a buyer, but it can actually backfire.
Your house should fit in with those around it. People who are looking for a home in your neighborhood want a house in a specific price range. They won’t pay significantly more for your house, even if it’s better than all the others on the block.
Your region’s weather can also be important. Features such as decks are more popular in areas with warm weather during most of the year. If you spend a lot of money on home improvements that aren’t important to people in the area, don’t expect to recoup a high percentage when you sell your house.
An expensive remodeling project won’t earn you a good return on investment when you sell your home if the changes you make don’t appeal to buyers. Overly personalized and unique home improvements may actually be a turnoff to prospective buyers.
Get Professional Advice
If you’re not sure which types of home improvements to make, consult a local real estate agent. He or she will be able to tell you what’s important to buyers in the area so you can make an informed decision.
