As we approach the summer construction season, many homeowners are planning for home improvements. But some renovations get a better return for the dollars you spend.
Thanks to Sarah Haltness, a real estate specialist at Dynamic Realty, for her assistance with this list.
Home improvement value recovery is really dependent upon the neighborhood standards.
If your home is generally “dated,” or behind the general neighborhood standard, you’ll likely get more for your dollars spent.
If your home were already at the neighborhood standard, sinking another $50,000 into your kitchen may help sell the house faster, but not necessarily increase its value.
What buyers find attractive:
- Granite countertops – kitchens and baths
Granite and/or quartz composite countertops are a must-have in upscale homes. Costs to install granite or quartz countertops are going to likely exceed $40 a square foot or more installed. - Kitchen ideas – faucets, cabinets and cabinet hardware.
Modest kitchen renovations can go far. A pull-out kitchen faucet, or updating your hardware for cabinets, are effective renovations. Having new kitchen cabinets is valuable, but could be very costly. - New Paint and Carpet
Replacing carpet or re-painting can give your property a renewed look. And, when selecting colors, neutral colors – carpet or paint – are a safe bet. - Laminated or Wood Floors
Consider laminated or wood floors. However, Haltness says, it depends on the price point. Laminate floors in a $500,000 home can look misplaced.
When looking at doing home improvements, it’s really important to emphasize that not every dollar spent will be returned in a dollar increase in the value of that home at resale. What’s just as important is that you enjoy the benefits of the renovation while you're there.
Some homeowners want to put in very high-end ranges or built-in refrigerators in their kitchen. That move is OK if you’re going to live there for a long time, but, for resale, experts say it’s better if you have “above-average” appliances that look good. It’s better for you to save the money and enhance the kitchen.
What to Skip For Resale Value:
- Wet Bar
Haltness says wet bars in the home were hot in the past, but today, buyers often ask, “What’s that for?” - Structured Wiring
Retrofitting with structured wiring is another poor choice. This includes stereo with speakers or retrofitting with Cat-5 for Internet connections. Today, with wireless connectivity, it’s not that important. - Sauna
- Low-Flow Toilets
- Garage Amenities
If you’re thinking of spiffing up your garage, like putting epoxy paint on the floor, or garage storage systems, think again. Your money is better spent in kitchens and bathrooms. The garage may be for your benefit, but not necessarily of interest to a new buyer.
The bottom line: High-traffic areas like kitchens and master bedroom suites are what sell homes.
