What's one of the first things you should do before you list your home for sale? If your answer was along the lines of "renovate," then you're heading in the right direction. Renovations can help boost the value of your home and speed up the selling process, as long as you choose what to renovate wisely. While some changes and upgrades can improve home value and give you a high ROI (return on investment), others are simply a waste of time. These are some home renovation projects with the best and worst return on investment.
The Best
Remodeling doesn't always mean adding new features or replacing current ones (which can be expensive). Deep cleaning, according to insights from top real estate agents, can lead to as high as a 935% return on investment. Even better? The cost is usually under $200. Hire a local cleaning company to take care of carpets, grout, upholstery, cabinets, and everything in between!
Still within the theme of "not spending a ton of money but still yielding a high ROI" is decluttering. While a clean looking home goes a long way, a house that offers a lot of storage options is going to appeal to a lot of potential buyers. Costing around $486, decluttering can give you a 432% ROI as well as a fresh looking home.
Two other projects that yield a high ROI include lawn care and mulching. After all, the first thing people see when they come to a showing is the exterior, and curbside first impressions are important. Lawn care services showed an ROI of about 352% and cost homeowners around $268. Fresh mulch was around 126% ROI and cost $340. Neither of these services are outwardly expensive nor do they require extensive time to complete. Call your local landscaping company and schedule a service.
The Worst
Some projects are best avoided unless they absolutely need to be completed. These include kitchen remodels, professional tree care, bathroom upgrades, and high-end landscaping. What do all of these have in common? They're expensive and their ROIs are quite low.
Kitchen remodels, for example can cost thousands of dollars-and that's on the low end. According to top real estate agents, the ROI is -1%, meaning that after all is said and done, you'd actually be losing money. If you're wondering how to sell a house that needs work without breaking the bank, start small and work your way up. Additionally, instead of spending too much money, consider pricing your house based on your buyer pool.
The Rundown?
One of the biggest takeaways is that you don't need to break the bank on renovations in order to get a high return on investment on your home's sale. Simple upgrades like decluttering and deep cleaning can increase your home's value without costing you a lot of money. On the other hand, kitchen and bathroom models, which can cost thousands of dollars, aren't worth it in the long run because they often yield a low return on investment.
