At some point, any homeowner decides to start making updates to their home. More and more I hear people asking, “How will this update impact the value of my home?” That’s a great question, and it’s one you should consider whenever you improve your home.
So what should you keep in mind when making updates?
Start Above Your Head
Let’s start with one of the biggest repairs/updates that homeowners frequently need to make – a new roof. Most people are scared to purchase a home that may need a new roof, and understandably so, since a new roof is an expensive investment.
So let’s say you have a home with an old roof – I have some good news and bad news for you. The bad news is that you’ll want to consider updating it before selling your home, and yes that will cost you a few thousand dollars. The good news is that multiple studies have shown (and my own experience confirms) that going from an old roof to a new roof adds more value to your home than any other single update. So putting that new roof on may be expensive, but, if it’s done right, you should get back more than you put into it when you sell your home.
Update the Key Places
Sometimes homeowners invest a lot of money making updates to areas like the dining room or the kid’s bedroom without considering if this is the best use of their money. (Hint: Normally it’s not.)
There are three key places you should consider updating: the kitchen, the master bathroom, and the guest bathroom. Why? Because these are the most important and unique rooms in the house. Think about it this way – how often have you ever been impressed by updates (not decor or furniture; actual updates to the home) in areas like the living room or a bedroom? There are exceptions, but most of the time, the only thing different from one bedroom or living room to another is the size, flooring, and paint. In a kitchen or bathroom, however, there are a lot of ways to improve functionality and design directly to the rooms themselves – countertops, sinks, bathtubs, faucets, backsplash, tile work, appliances, lighting, etc.
The bottom line is this – you show me a home that has a fully renovated kitchen and master bath, I’ll show you a home that will sell quickly, even if the other rooms in the house have some quirks. If you want to get the most bang for your buck, kitchens and bathrooms are the rooms to update, end of statement.
Make Smart Entire-Home Updates
Most people think that a fresh coat of paint adds a lot of value to their home. I even know of a couple that had a home that wasn’t selling, and so they took the home off the market, painted it, and then put it back on for $5,000 higher than it was before. Yikes. I’m not saying that painting doesn’t help home values in some instances, but a large percentage of buyers plan to change the paint color anyway. So I’ve got another idea – save the paint money and invest it into other parts of your home.
Flooring
Let’s start with the floors. One of the best ways you can improve the value on your home is by updating the flooring throughout. You don’t need to go crazy here with the most expensive options, but don’t be cheap either, since buyers will notice that you skimped. And if you have hardwoods that are in rough shape, by all means, refinish them! You’ll have hardwoods that virtually look brand new for a fraction of the cost of replacing them.
Lighting
People absolutely love lighting upgrades. What do I mean? For starters, recessed lighting where there previously wasn’t any lighting is a great way to add value to your home. But if your home already has recessed lighting, adding dimmers or updated switches go a long way as well. And nowadays there are other tech-savvy updates that can be made, like lights that can be controlled by your smartphone. The jury is still out on how those impact home value, but my guess is that in a few years, they will be quite popular, especially among Millennial buyers.
Windows and Blinds
New windows and blinds aren’t cheap, but if your home has older windows and/or cheap or no blinds, you will almost certainly get your money back updating them. No one likes having windows that aren’t energy efficient, are hard to open, or are simply painted shut (as is the case in many older homes). Homebuyers also don’t like the idea of having to immediately add or replace the blinds in the home, and they will notice if you update the home with nice, new blinds. Don’t skimp here – windows are a crucial part of a home, and they should be a feature of your house rather than a detraction from it.
Landscaping
There are three categories (in my mind) of landscaping:
- Landscapes that are unmaintained (lots of weeds, dirt patches, unmowed lawn, etc.)
- Landscapes that are well-maintained (everything is neat, trimmed, and green but also basic)
- Landscapes that have been updated (such as a professionally landscaped yard).
Not everyone needs a professionally landscaped yard, but if you are interested in that type of thing, it will definitely add value to your home (as long as it continues to be maintained after the professionals are done). However, even moving from an unmaintained yard to a well-maintained yard will have a good impact on your home value.
Electrical (for older homes)
If you have an older home, updating the electrical can have a huge impact on your home’s value. The reality is that any inspector that finds older wiring, non-grounded outlets, or other electrical quirks is going to flag that for a future buyer. This isn’t a fun or sexy update, but it’s one to consider in order to avoid getting blacklisted by concerned buyers.