It’s often difficult to find that sweet spot when it comes to knowing how much work to put into your home before listing it for sale. You definitely want to get top dollar but it’s impossible to know exactly what it will take to turn a buyer from potential to committed.
For example, Realtors always suggest painting the entire interior to give your home a fresh updated look. But what if that one buyer seriously interested in your home hates the latest neutral color palette and is planning on repainting before even moving in? Isn’t that just your money down the drain? The answer is both yes and no. Yes, if the above scenario occurs. No, because probably the majority of potential buyers would be happy to move into a freshly painted home the day of closing.
So what is a seller to do? It’s important to know which home renovations yield the highest return on investment (ROI.) The last thing you want is to spend 100 percent of your remodeling budget on one particular project only to discover your ROI is less than 50 percent.
While allowing for percentage differences depending on where you live, these are generally the top six best home renovations when considering home resale value.
- Garage door replacement for both functionality and aesthetics will net you 97.5 percent allowing you to almost break even once your home sells.
- Manufactured stone veneer. Jazz up the entryway or around the foundation with fabricated stone and your recoup value hovers right around 95 percent.
- A mid-level kitchen remodel including new appliances, countertops, sink and faucet, new flooring and refinishing the current kitchen cabinets will make a tired kitchen look and feel like a million bucks. Plus you’ll get on average an 80 percent ROI.
- A wooden deck constructed from pressure treated lumber and approximately 16’x20’ in size will retain more than 75 percent of its value.
- Replacing that worn and faded vinyl siding is another 75 percent recoup. Plus fresh new siding will definitely get second looks from potential buyers.
- Refinishing hardwood flooring, while a huge undertaking, will often see a 100 percent ROI, according to the 2017 Remodeling Impact Report conducted by the National Association of Realtors.