Renovations can add value to a property. You might be wondering, though, which improvements give you the most significant return on investment? What changes make your house more comfortable and appealing to buyers? What do buyers even want in a house? These five upgrades are desired by buyers and increase home value.
1. Kitchen Remodel
You may have heard the phrase, “The kitchen is the heart of the home.” It is the center of activity, where family comes together daily. For this reason, it is one of the most important features on a homebuyer’s shopping list.
Buyers want a cooking space that is both functional and aesthetic. Rather than invest in a complete kitchen remodel, you can make small changes for less money that garner the same attention. Minor remodeling efforts include:
- Updating the sink and faucet;
- Refreshing sink grout;
- Putting in new countertops;
- Replacing backsplash;
- Refinishing or painting cabinets; and
- Swapping out lights.
Minor kitchen remodels show a return on investment (ROI) of at least 81%.
2. Build a Room
Buyers like a spare room that can be converted into another bedroom, alternate living room, or hobby room. You can turn an unfinished basement or attic into a new, attractive living space. All you have to do is put down some flooring, install drywall, and paint the walls. You can then pitch the bonus space as an added value, that the buyer can turn into a possible game room, craft room, or in-house gym.
Repurposing the attic into a finished room can net an average 56% ROI. A finished basement will give you a return of 70% to 75%.
3. Open Up the Floor Plan
Buyers enjoy connectivity between high-traffic rooms, such as the kitchen and dining area or living room. Consult a contractor first before you start swinging a sledgehammer. Ensure the house stays structurally sound after you knock out walls or structural columns to open up the floor plan.
Homes with an open floor plan appreciate 7.4% a year.
4. Update the Backyard
Buyers spent so much time indoors last year, they now want a house with a functional backyard. A well-landscaped yard, alone, can contribute up to 28% of your house value. You can make your backyard more appealing by doing the following:
- Landscaping;
- Build a deck or covered patio; and
- Replace the fence.
If you build a deck, consider extras like accent lighting and built-in seating. You might put in a fire pit for extra warmth and comfort.
You can also create a sense of flow between the outside and inside of the house with sliding glass doors. This feature is popular when entertaining, as it connects the living room or kitchen with a possible alfresco dining area.
5. Put in Hardwood Floors
Carpets trap dirt, dust, stains, and odors. They fade over time and require a tougher cleaning than solid flooring. Buyers nowadays like a house with polished, hardwood floors. Hardwood floors are beautiful, durable, easy to clean and add rich tones to the interior.
Hardwood floors earn you an average 70% to 80% ROI.
Save Your Money, Save Time, Sell to an Investor
Making these improvements costs money. If you can afford them and are in no hurry to sell, you may increase your asking price, depending on the upgrade. Otherwise, consider the alternative: sell to an investor for a no-obligation, all-cash offer. Most investors will purchase a house AS-IS, ranging from outdated, unfinished renovation to significant damage. You can enjoy a quick closing, without an endless parade of showings, and use the cash to improve your next house.
