8 Home Improvements That Will Increase Your ROI

8 Home Improvements That Will Increase Your ROI

These eight home improvements will increase your returns.

If you’re looking to downsize or move into a new family home, now is a great time to sell your home. Are you hoping to maximize your buying power and the cost of your home? Look no further than these eight tips for home improvements that will increase your return on investment.

Small improvements are a great way to increase your home’s value, and they do more for your ROI than considerable improvements. When remodeling a home to sell, it’s best to be strategic. Think about what a modern buyer might want in their new home. While stats show that a pre-sale home renovation will typically recoup about 80% of the cash spent, if the project increases the value of your home significantly overall, then it just might be worth it.

Here are the eight improvements that will increase ROI on homes in 2023.

1. Kitchen Remodel

“Kitchens sell homes” is a phrase commonly heard in the real estate industry—and for a good reason. The kitchen holds a lot of value for many buyers. It can also be the most expensive room to remodel. A seller has a lot to think about when remodeling a kitchen: countertops, cabinetry, appliances, and hardware, to name a few.

According to Ramsey Solutions, the ROI on a major upscale kitchen remodel is 54%. So, if you’re looking to fully remodel your kitchen in hopes of increasing the sale price, the project is definitely worth considering.

2. Small Kitchen Improvements

A small kitchen remodel can provide a much larger return on investment in homes. Is your kitchen outfitted with cabinetry, countertops, and appliances that appeal to modern buyers? Perhaps a minor improvement, such as painting or wallpaper removal, could bring your kitchen into 2023. Adding a backsplash is a slight improvement that can have a significant ROI. Painting the cabinets or changing the hardware are other minor improvements that have a big impact.

3. Upgrade Windows

Buyers, appraisers, and inspectors will take notice of a home’s windows. Windows are not only an aesthetic improvement but also a practical one. Energy costs due to heating and cooling can significantly improve with the right windows. Modern buyers are looking for ways to offset their energy costs and carbon footprint, and new windows can do just that.

4. Paint, Paint, Paint

A fresh coat of paint is one of the simplest ways to add instant appeal to Petworth homes. Light, neutral colors make it easy for potential buyers to envision themselves living in the space. Additionally, light colors open up houses, making them appear larger. Lighter colors are also easier to paint over if the buyer wishes to add their personal touch after purchase.

5. Finish The Basement

If you have a basement in your home that’s not a comfortable, livable space, consider upgrading it. A finished basement will add livable square footage to your home. It’s also a great way to add another bedroom or bathroom. According to The Balance Small Business blog, a finished basement typically doles out a 70 to 75% return on investment. In a somewhat competitive market where homes sell for a median price of $800,000, a finished basement can set your property apart from other homes on the market.

6. Additional Bedroom

If remodeling your basement is an option, you can increase the value of your home and the amount of livable space by adding a bedroom in the basement. This room can serve as a bedroom for children or guests, which will be very attractive to potential buyers, especially families. Any real estate expert will tell you that adding a bedroom will bring a worthy return on investment.

7. Primary Bathroom

If you plan to remodel a bathroom, start with the primary bathroom. The primary bathroom will likely be the most used in the home, and small updates go a long way. Would new tiling and a fresh coat of paint do the trick? Or is a complete remodel in store?

If there are other bathrooms in the house with a bathtub, think about adding a tiled standup shower instead of a bathtub to the primary bath. Consider the other bathrooms in the house before making decisions. A couple without children may be happy to find a home with a standup shower, but buyers with children may need a space for bath time. You don’t want to eliminate potential buyers in your remodel.

8. Patio/Outdoor Space

The last two years and the transition from office-based to home-based work have demonstrated that people spend more time at home. No longer are they leaving the house in the morning and stopping at their favorite coffee shop on their way to the office. People are no longer stopping by the park on their way home from work, so an outdoor space is valuable when your home becomes your office.

Does the deck need a makeover? Would a few additions to the front of the house make for a low-cost but stunning entryway? Nicely done outdoor spaces reel buyers into properties. They may come for the square footage and number of bedrooms, but the curb appeal will be their first impression—so make it a good one!

Consider making a few improvements if you want to sell your home in 2023 for the best price. A small remodel may have a better return, but a more extensive remodel can also increase your house’s overall value. Be strategic and crunch the numbers to know which projects will bring the most significant returns.

Petworth real estate can be tricky, but the Mollaan Babbington Group is here to help! Contact us to discuss your options as a seller. Our experienced realtors will work with you to get the best price for your home!