Home Improvements that have a Return on Investment
What you get back on your investment depends on the value of your house, the value of houses in your immediate neighborhood, the housing market where you live, how soon you sell after making improvements, and the quality of the project itself.
The following home improvements can have a big impact the value of your home:
- Kitchen: The only home improvement likely to return more at resale than the Attic Insulation is a minor (roughly $15,000) kitchen remodel. This can return about 90 percent (even rental apartments have Granite counter tops standard).
- Bathrooms: Remodel only absolute necessary areas of your bathrooms. Update faucets (gold is no longer in) and lights over the mirrors. Bowling ball size lightbulbs are certainly out. Also high on the list: Walk-in showers have replaced whirlpool tubs as the must-have cleaning machine in bathrooms.
- Basements: I have been in houses where people are spending thirty or forty thousand dollars to remodel the kitchen, but then you walk into the basement and there’s a musty smell because water is leaking through the foundation. To me, it’s more important to resolve those items first, and get the luxuries later.
- Roof: For a buyer, knowing the roof needs to be replaced is a big issue. A new architectural shingle roof is just as important to buyers as A/C units that are less than 10 years old.
- Crank up the curb appeal: If people drive by your home and are not impressed, they’re not going to walk inside. Pull weeds, rake leaves and trim overgrown shrubs, especially if they block windows or the path to your front door. Make sure that grass is cut weekly and the curb is cleanly edged.
- Paint: It’s important to make your house generic. A fresh coat of neutral paint (applied by a professional painter) will make your home appear larger, brighter and more appealing to potential buyers. Keep in mind that the house does not have to reflect your taste in colors. It needs to be neutral and be attractive to the potential buyer.
- Floors: Generally speaking hardwood floors in the ground floor living areas are preferred over carpet flooring. For smaller homes, new “floating” Pergo floors offer amazing alternatives and attractiveness.