If you're planning to sell your home, you might be wondering what kind of renovations can increase its value and appeal to potential buyers. While some home improvements can be costly and time-consuming, others can pay off at the closing table by boosting your return on investment (ROI).
Here are 7 home renovations that will get you an ROI at the closing table.
1. Kitchen remodel
The kitchen is often considered the heart of the home, and buyers are willing to pay more for a modern, functional and attractive kitchen. A minor kitchen remodel can include updating the cabinets, countertops, appliances, flooring and lighting. According to Remodeling Magazine, a minor kitchen remodel can recoup 72% of its cost on average.
2. Bathroom remodel
A bathroom remodel can also increase your home's value and appeal, especially if you have an outdated or cramped bathroom. A bathroom remodel can involve replacing the fixtures, tiles, vanity, shower and tub. You can also add some luxury features like a heated floor or a steam shower. A mid-range bathroom remodel can recover 64% of its cost on average.
Curb appeal is important for making a good first impression on buyers, and landscaping can enhance your home's exterior appearance and charm. Landscaping can include planting flowers, trees and shrubs, adding mulch and rocks, installing a walkway or a patio, and improving the lawn. Landscaping can yield an ROI of 100% or more.
4. Energy-efficient upgrades
Energy efficiency is not only good for the environment, but also for your wallet. Buyers are looking for homes that can save them money on utility bills and reduce their carbon footprint. Energy-efficient upgrades can include installing solar panels, adding insulation, replacing windows and doors, upgrading the HVAC system and adding smart thermostats and lighting. Energy-efficient upgrades can have an ROI of 50% to 80%.
5. Fresh paint
One of the easiest and cheapest ways to update your home is to apply a fresh coat of paint. Painting can brighten up your rooms, hide any flaws and create a neutral backdrop for buyers to envision themselves living in your home. You can choose light and neutral colors like beige, gray or white to appeal to most buyers. Painting can have an ROI of 50% to 100%.
Flooring is another factor that buyers notice and care about when looking at homes. Old, worn-out or damaged flooring can detract from your home's value and attractiveness. Flooring can be replaced or refinished depending on the material and condition. You can choose hardwood, laminate, tile or carpet depending on your budget and preference. Flooring can have an ROI of 70% to 80%.
7. Basement finishing
If you have an unfinished basement, you can turn it into a usable living space that adds value and square footage to your home. You can finish your basement by adding drywall, flooring, lighting, plumbing and electrical wiring. You can also customize your basement according to your needs and wants, such as creating a family room, a home office, a guest bedroom or a game room. A basement finishing project can recoup 70% of its cost on average.
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