Whether you’re a homeowner with a “For Sale” sign in your future or a real estate agent who regularly educates clients on getting top dollar for their homes, it’s vital to understand the true return on investment (ROI) of common renovation projects.
The last thing you want to do is invest money in a property and not see a solid return when it comes time to sell.
To help guide you through the decision-making process, we have pulled together insights from experts in both the real estate and construction industries to find the best upgrade projects for getting top dollar on your home sale price.
Front Door Replacement
A beautiful front door can change the entire look of a home’s exterior. Not only does a new front door give your curb appeal an instant boost, it also nearly pays for itself when it’s time to resell.
When picking a replacement door, you will get the best return on your money by choosing one made from steel. They’re extremely durable against the natural elements and energy efficient. Leave the installation to the pros, though—you’ll want to make sure the weather-stripping and flashing are done correctly to maximize your new front door’s performance.
The kitchen is the heart of the home, so it should come as no surprise that an upgraded one can add a ton of value to your home. The key is to make sure you’re making the right upgrades for your specific market. Granite countertops aren’t the guaranteed seller everywhere that you might expect (we know, we think it’s weird too).
If you want some guidance on the best fixes for your kitchen renovation, consider talking to a seasoned real estate professional who is familiar with your area. Also look online at nearby houses in similar neighborhoods with similar square footage that are currently for sale or recently sold. By searching within the price point for which you’d like to sell your home, you can get a pretty good idea of what local buyers expect to see in the kitchen.
Crown Moulding Installation
Installing crown moulding not only makes a home automatically feel more high-end and well designed, it also gives you a significant ROI on a relatively cost-effective upgrade.
In fact, crown moulding has the highest return on investment out of all the updates on our list.
Want to find out just how much?
Download our free infographic to get more insights on the exact ROI you can expect from crown moulding and other common home upgrades.
Most real estate professionals recommend adding crown moulding before listing a home for sale. It’s the kind of detail that can quickly elevate a buyer’s perception of your home.
Garage Door Replacement
Like a new front door, an upgraded garage door can strongly influence a buyer’s first impression. And any real estate agent can tell you that a first impression is a lasting one. Garage doors are a low-cost upgrade that can nearly pay for itself when you put your house on the market.
Not only do they grab the attention of buyers when they drive up to the property, but they also look great to potential buyers who are browsing through listings online. Even a mid-range garage door can create a lasting visual impact both in person and on the web.
For an easy fix that adds automatic value to your home, consider insulating your attic. The vast majority of homes in North America don’t actually have adequate insulation. Not only can you save money on your energy bills, you’ll also strike a chord with buyers who are conscious of both budget and energy conservation.
The best part about this upgrade is that attic insulation is fairly inexpensive. If you want to save even more money before selling, consider making it a DIY project on a Saturday afternoon. It doesn’t take a ton of expertise or special tools, so if you have the time, you could definitely add attic insulation to your weekend warrior list.
A basement remodel not only offers a high ROI, it can also increase the advertised square footage of your home if you finish it completely. In addition to styling it with the right finishes, you also want to get the technical aspects right in order to eliminate moisture issues.
This is another project where it’s important to upgrade depending on your neighborhood and desired price point. Would it be best to turn your basement into additional living space or a workshop? Is it worth spending the extra money to create a garden-style apartment with an ensuite bathroom and kitchen? Take your cue from houses around you to see what’s catching the eyes of buyers in your market.
The answers really depend on your budget, timeline for moving, and location.
Common real estate knowledge states that the two most important features in a home are the kitchen and the bathrooms. At a minimum, you should be able to recoup a substantial majority of your cost for a bathroom upgrade. In some markets, you may even be able to go beyond those numbers.
Another reason for a bathroom remodel is that, frankly, more and more buyers are expecting them to be done when they walk into a house. And with luxe-looking products available at just about any price point, you have tons of options available regardless of budget.
Do you want to learn more about how much of a return on investment to expect from proven home improvement projects? Download our ROI infographic now.