6 Updates To Boost Your Home's ROI

As the spring market draws near, homeowners considering selling their homes are looking to do whatever they can to prepare and increase the value of their asset. A lot of owners will make small fixes, replace aesthetic choices, and maybe update an appliance or two expecting the value to double overnight. 

While some of those things can absolutely increase the value from an appraisers standpoint, most of it won’t move the needle much in either direction. If owners are really looking to get a large ROI (return on investment), these are the updates we would recommend tackling first.

1. Lawn Care & Landscaping

Curb appeal can end a deal before a potential buyer ever steps foot in the home. Some people have a green thumb and love to handle their own landscaping, but many more cannot look at a flower without it withering away and dying in front of them. Those are the people that most certainly will turn down a home that they see a lot of landscaping will be necessary for right out of the gate. Yards overrun with weeds, dead grass, mud pits, and other unfavorable aspects do not appeal nearly as much as ones with pristine flower beds and well-maintained grass. It’s much less of a headache! According to a recent report by Ace Handyman Services, standard lawn care can deliver an impressive ROI of 217%. Having a clean, well-cared-for yard increases curb appeal and gives prospective buyers a good sense of the property.


2. Roof Replacement

The roof may possibly be a big upfront expense for a seller, but it could also make all of the difference to potential buyers. An old roof is a liability for many reasons, not just in terms of a future potential sale, but life in general. An old roof is more vulnerable to damage from severe weather, is more likely to leak, and decreases energy efficiency throughout the home. Because of this, insurance companies are becoming less and less likely to insure a home with an older roof, putting buyers in a tough position. They could fall in love with every aspect of the home, but if it’s uninsurable, it’s not a good asset to pursue. Studies now also show that replacing the roof of a home can increase ROI for owners by 48% to 57%. So if you’re thinking about selling, but still looking at the original roof, maybe start to get quotes about how much a replacement will cost you.


3. Garage Door Replacement

People typically don’t think of garage doors when talking about potential upgrades to their home, but they should start. According to Zillow, replacing the garage door on a home is the #1 thing an owner can do to increase resale value and ROI. Buying and installing a new garage door costs an average of $4,317, with a resale value of $15,081. That's a whole 349.3% return on investment! If an owner is going back and forth about how worthwhile it would be, it’s definitely worth the second thought.


4. Exterior/Interior Painting

A fresh coat of paint inside and out isn’t a huge project to tackle, but much like the curb appeal, first impressions matter. A home with old, chipping paint or bright unappealing colors can sour a buyer quickly, whether it be on the interior or exterior. They don’t want to see a project on their to-do list before they even put an offer in. Especially in a competitive market! Refreshing old paint and choosing more neutral colors is a great way to spruce up a home in a relatively easy way. ACE Hardware reports that an exterior paint job can deliver a 55% ROI, and interior up to a 107% ROI. A simple task with a great payoff!


5. Hardwood Flooring

There are multiple great options for flooring today in varying price ranges, but hardwood remains the standard for a true ROI. Hardwood not only looks and feels great, but delivers the most consistent and exceptional returns. Studies showed that adding hardwood floors increased the entire property value by 3% to 5%, with homeowners recouping 70% to 80% of their investment at resale. Replacing the floors with hardwood may seem like an initial larger lump sum compared to other options, but it’s a worthwhile investment in the long run.


6. New Patio

Green space is not available at every home, but if the home has it, owners will want the opportunity to enjoy it. Adding a patio area or upgrading one already there can significantly increase the appeal of the home in a resale. Not only that, but it has a 95% ROI, so the owner should recoup almost all of the money that they put in by the time they sell. It’s a win win—the owner can enjoy the space before the sale, and benefit from it again after.

These updates aren’t always necessary, but they are a great start to increase the resale value of a home if that is the goal. If you would like a more personal opinion on what you could do to add value to your home, contact us today to set up a meeting. 

 

Sources:
https://www.realtor.com/advice/home-improvement/florida-home-remodel-raised-home-value/

https://www.zillow.com/learn/best-home-improvements-to-increase-value/

https://www.angi.com/articles/new-roof-roi.htm