Renovating: If you are selling your home, here are some tips to get that buyer to sign on that dotted line.
There are many things you can do to get your house in a state whereby a buyer can see it as their own. This includes cleaning, painting, de-cluttering, landscaping and deciding which other projects might reap the greatest reward given limited time and money. Nearly one quarter of sellers who make renovations or improvements before selling, sell above list price. This is compared with 16 percent of sellers who don’t. The key is making smart decisions about what to upgrade, because home-improvement projects don’t necessarily pay for themselves. Some improvements actually cost more than they return in value. A smaller, inexpensive upgrade typically brings a bigger reward than a more involved and time-consuming one. Here are some tips to maximise return and minimise renovation headaches:
Dive into the “curb appeal” projects first, and do them smartly.
New paint inside and out and basic landscaping don’t break the bank, and are typically the most common and necessary improvements. And choosing the right eye-catching colours can increase a home’s value far beyond just the appeal of new paint. Yellow homes sell for nearly $3,500 less than expected, while the right colour door can lead to an extra $6,000 in a seller’s pocket.
Upgrade the bathrooms (but not too much).
A mid-range bathroom remodel, replacing the toilet, tub and light fixtures, adding a double sink, tiling the floor and hanging some wallpaper, is a good idea. This typically results in a $1.71 increase in home value for every dollar spent, if the bathroom is at least 25 years old. But an upscale bathroom remodel with top-end features, full-body-wash shower wall, bidet, will actually cost a seller. It adds 87 cents of home value for every dollar spent.
Install new windows.
New mid-range windows can return $1.15 for every dollar. But get too fancy and you’ll end up breaking even.
Pay attention to current design trends.
Warm modernism and organic accents are in. Bold colours and an overtly rustic feel are out. The right design can show buyers the potential in your home.
Don’t focus on the kitchen.
Kitchen renovations, at any level, are among the worst return on investment of the home improvements, at about 50 cents on the dollar. Part of the reason is that the kitchen is one of the few rooms in a house where different people want different uses. You could spend $30,000 renovating a kitchen only to turn off some potential buyers who would have done it differently.
If you’re fixing up your home to appeal to a variety of potential buyers, go for changes that have a broad appeal. Fresh paint in the new ‘it’ neutral signals a well-maintained home, and most people can imagine their own furniture matching the walls. A luxury chef’s kitchen won’t matter to the majority of people who can’t call themselves a good cook and just eat out often anyway.
Advice supplied by Zillow.
Editor for Silver Magazine Gold Coast