People often ask me what home renovation projects will provide the highest return on investment from a resale standpoint. This is an excellent question, as not all home improvement/renovation projects provide the same value add from a resale standpoint.
Let’s take a look at five home improvements with the most potential for adding value upon resale in the Greenville, SC real estate market.
1.) UPDATE THE KITCHEN – A severely outdated kitchen is often a deal breaker for today’s buyers. Renovating (or even aesthetically updating) your kitchen and updating all appliances is a guaranteed way to add value to your home, and help to safeguard against lowball offers in the future. Bonus points if you add a gas range!
2.) CREATE A DEDICATED MASTER SUITE – The presence of a dedicated (and swoon-worthy) master suite is a very important factor for buyers in picking a home these days. If you own an older home that was not designed with a dedicated master suite, adding one or reconfiguring existing space to create one will go a long way when it comes time to sell your home.
3.) GIVE THE MASTER BATHROOM A MAKEOVER – The master bath should be totally amazing; all around. Buyers prefer a separate tub and shower if possible, and garden tubs are definitely preferred over jetted tubs these days. Custom tile work throughout with unique, eye-catching designs will also add value, depth, and aesthetic appeal to the space.
4.) UPGRADE THE CLOSETS – Having a large master closet (or multiple closets) is an absolute must. And believe it or not, this isn’t just for the ladies! Buyers also want plenty of rack and shelf space in all of their bedroom closets (master and otherwise). Value Add Tip: Having a company design and implement closet organizational systems in the closets throughout your home is an excellent and relatively inexpensive way to make your home really stand out from the competition!
5.) RETHINK THE LAUNDRY ROOM – Perhaps somewhat surprisingly, the laundry room is a pretty big factor for a lot of today’s buyers. The preference is for it to be an actual room (as opposed to just a closet), and given their choice in the matter, most buyers prefer that it be located on the same level as the majority of the bedrooms. While this is not always a possibility, when it is there’s a major value add there. Updating the aesthetics and functionality (adding shelving/storage, a sink, etc.) of an existing laundry room is also a great way to add value and avoid potential negative feedback from buyers.
SO, HOW DO RENOVATIONS/UPDATES FACTOR INTO THE RESALE EQUATION?
Real estate is an industry where perception is very much reality , and how buyers perceive a home is just as important as the material facts about the home.
In my experience I have found that there are certain aspects of a home that, when outdated, tend to affect the salability of the home more than others. For example: a buyer might view outdated fixtures, finishes, flooring, wallpaper/paint, etc. as manageable and easy to change without a whole ton of cost and hassle involved.
In contrast, other outdated elements of a home like the kitchen, master suite, and bathrooms tend to give buyers a much more negative perception of the home from the get-go, conjuring up images of outrageous renovation costs, the hassle of living in a never-ending renovation project, and more.
These negative perceptions about homes usually end up materializing in one of two ways:
- The Buyer crosses the home off of their list altogether, moves on, and never looks back.
- The Buyer submits a lowball offer in order to account for what they think potential renovations might cost. This action often offends the Seller and is a disadvantageous place to start the negotiation phase of the transaction.
A GOOD RULE OF THUMB FOR HOME RENOVATIONS
The most important thing to keep in mind with any renovation projects on a home that you might someday sell is to keep the design as clean, timeless, and elegant as possible.
Try to pick fixtures, finishes, and colors that give off a fresh, modern vibe, but will also stand the test of time and be palatable to a broad range of people.
Try to keep functionality and practicality top of mind as you design and implement your renovations/additions, remembering that when it comes time to sell you’ll be selling a lifestyle, not just a home.
NEXT STEPS
Do you have questions about the value add of specific renovation projects you’re considering (even if you are not thinking of selling your home for a very long time)?
Are you curious to know what your home might be worth before and after renovations (and if those renovations will make enough of a difference to justify the cost)?
Are you thinking of selling and wondering which areas of your home would be the best to invest your money in prior to listing your home?
If you answered YES to any of these questions, I’d love to help you! Feel free to text, call, or email me at any time!
No pressure; just sound, concerned, and experienced advice!
