If you’re considering putting your home on the market, there are some upgrades that command better resale value for your home than others. Upgrading important rooms and fixtures will help attract more potential buyers, which in turn can drive the value of your home up. But will they increase your home’s resale value enough to justify the investment? Here are 5 upgrades you should consider if you want to generate the most money you can for your home.
1. Upgrade Your Kitchen
Your kitchen is one of the first things prospective buyers will see when they enter your home (depending on layout, of course). It’s also one of the most exciting rooms for prospective buyers to enter and see themselves in. But before you make the jump on a new kitchen re-do, make sure to compare other homes on the market and price of your home. The cost of the kitchen should be in line with the cost of the rest of the house. A kitchen remodel will run you from $5,000 to $75,000 or more depending on how crazy you want to get. But you can recoup 60% to 120% of the investment according to Remodeling Magazine’s annual Cost vs. Value Report, so it may be worth the effort in the right market.
2. Update Flooring
Hardwood flooring is another great way to increase the resale value of your home, according to Realtor.com. In fact, it can add around 2.5% to the value of your home. Of course, this figure varies depending on the neighborhood and market type, so if you’re the last one on your block to replace your floors, it’s probably a good idea to pull the trigger.
3. Add & Update A Bathroom
The next room to turn heads of potential buyers is the bathroom. Consider a facelift to your master bath—and if your house could also use an additional bathroom, that can be money well spent (often recouping 80% to 130% of your investment). Rather than adding on new space, consider extra rooms, closets, or areas under stairs that could be converted into a bathroom. The average half-bath requires at least 18 square feet. A full bath should be at least 30 square feet if you’re planning on a free-standing shower, and 35 square feet if you want a tub. Save money by purchasing sinks and toilets that were used as floor models at your local home improvement store or by shopping at a Habitat for Humanity ReStore.
4. Add Energy-Efficient Windows
Windows aren’t always an apparent update, but updating them can save you up to $500 a year in heating and cooling costs when replacing old, single-paned windows. And that can attract potential buyers. Remodeling Magazine estimates you can expect to recoup 60% to 90% of your costs replacing windows (approximately $7,500 to $10,000 for an average-sized home) when you sell. You may also want to look into local incentives for updating windows that are Energy Star-rated, as well as any national tax credits. If you do plan on updating your home’s windows before you sell, think about replacing smaller, less appealing windows with larger ones. The added natural light will improve the appeal of even the smallest rooms.
5. Add A Deck
Outdoor living spaces have become more desirable as more families trade vacations for staycations. Adding a deck increases the value of your home, and HGTV estimates a 65% to 90% recoup when you sell. The cost of adding a deck varies widely depending on size, materials, and bells and whistles (like built-in seating, multiple stairs, and built-in flower pots), but expect to pay $1,200 to $10,000 or more. Again, try not to get too specific to your own lifestyle and keep things open to interpretation for potential homebuyers to fill whatever outdoor needs their family may have.