What upgrades bring the best return.
A smaller, low-cost upgrade typically
brings a greater reward than a more involved and laborious one.
Here are a few items on
Zillow's "Do" list for sellers looking to pocket the biggest payoff:
·
Dive into the "curb appeal" projects
first and do them smartly –
·
New paint inside and out and basic landscaping and yard care
typically runs about $3,000, according to recent research by Zillow and
Thumbtack, and are typically the most common and necessary improvements. And
choosing the right eye-catching colors can increase a home's value far beyond
just the appeal of new paint.
·
A recent Zillow analysis found
that yellow homes sell for nearly $3,500 less than expected, while the right
color 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 -- 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 -- top-end
features, full-body-wash shower wall, bidet -- will actually cost a seller,
adding 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 colors and an overtly rustic
feel are out. The right design can show buyers the potential in your home.
And some important
"Don't":
·
Focus on the kitchen --
Kitchen renovations, at any level, are among the worst return on investment of
the home improvements we studied, 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 utility. You could spend $30,000 renovating a kitchen
only to turn off some potential buyers who would have done it differently.
As previously published in Builder
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