Which Home Improvements Add Value
What are the home improvements to add value before selling?
What home improvements will help sell a house?
These are two questions I’ve gotten too many times to count over my thirty-seven years of selling houses.
When renovating your home, it is essential to know which items add value and which don’t.
You have decided to put your home on the market and have gone ahead and done all the little things necessary before selling a home. You have listened to a few of your friends, consulted with a Realtor, and even watched some HGTV for good measure.
However, the end of your home sale preparation and home staging is incomplete.
You need to clearly understand and market the improvements that add value to your home!
Positioning your home to sell takes time and effort, but it does not necessarily need to be complicated. If you start early enough, make the improvements to your home that will make it stand out in the market and document them appropriately.
Doing so can make your home much more appealing to buyers.
The key, of course, is knowing which improvements will add value and help sell your home and which will be a waste of money.
There are, in fact, home improvements that don’t add value, and some could even lower it!
Some sellers fail to realize that home buyers love to know what owners have done to their property and when. From a seller’s standpoint, not only does it help justify your price but it is a good business practice for marketing purposes.
An excellent marketing brochure is something that a good Realtor can help you put together.
While making home improvements is super essential for the ultimate value of your home, if nobody knows about them when you are selling, you are missing a real marketing opportunity.
A top real estate agent will use creative real estate marketing to enhance the appeal of your property.
Upgrades That Add Value to a House
Here is a list of upgrades and improvements that increase value and make your property easier to sell. Make sure you market your upgrades heavily!
An Addition Brings Added Value
One of the top motivators of why people move is to get more space. Homes that deliver on that goal can capitalize on the real estate market.
Adding square footage to a home in the right places can significantly impact ROI. Return on investment will be outstanding when adding a bedroom or bath.
For example, going from a 2 to a 3 bedroom or 3 to 4 bedroom can bring excellent added value. When there is no master bath, and one is added can add even greater value.
Finishing a Basement Brings a Higher Sale Price
The beauty of finishing a basement is you can add significant square footage to your home for far less money than an addition.
Homes with a walk-out basement will benefit the most due to the added natural light. Home buyers love the fact that a basement provides numerous options.
Whether you need a place for kids to entertain their friends, an in-law to stay with you or a more living area, a finished basement works wonders.
You can do so many things, which is why it is such an excellent improvement that raises property values.
Big Structural Impacts Increase Property Values
There are a few improvements that can make a severe structural impact on your home and bring it into the modern world in an immediate way. Kitchen upgrades, for instance, are an excellent way to take a house from old and dated to fresh and appealing.
Replacing old countertops, cabinets, appliances, and fixtures can make your kitchen a selling point instead of a sore spot. Most people regard the kitchen as one of a home’s most essential rooms.
It makes perfect sense as we spend considerable time there cooking, eating, and hanging out for a good conversation. Not many home improvements will have a more significant impact than an upgraded kitchen when selling a house.
Homes with updated kitchens do exceptionally well because very few buyers want to tackle a kitchen replacement as one of the first things they do when moving into a new home.
Bathrooms are another area where you can renovate to interest buyers. New fixtures, tiles, and flooring can make your bathroom look warmer and more inviting instead of a dark cave where no one wants to go.
A stunning ensuite bath is high on many home buyers’ priority lists.
Getting a return on your investment becomes more probable when you have severely outdated baths with color schemes from years past, like gold and green.
Upgrades like these are time-consuming and expensive, but they are also areas of the home that people look hard at when buying. Kitchens and baths are two of the most value-adding improvements when selling a house.
System Replacements Bring Added Value
The systems that make your home comfortable will wear out over time, and replacing them now could help draw buyers in.
For instance, heating and air conditioning systems are necessary for modern homes.
But if your system is old or inefficient, it may be worth looking at a replacement.
HVAC Systems
Newer cooling and heating systems are a sound investment. They work more efficiently – using less energy to heat and cool more effectively – than older systems. This makes them appealing on an environmental level and for improved comfort.
Most real estate agents will tell you from experience that replacing these items can add significant value before selling.
Plumbing Systems
Your plumbing system is another one that could maybe use an upgrade. Some older homes are not equipped to handle full-size families, from old inefficient water heaters to rusty steel pipes and water-hungry toilets.
A new system may cost some money, but it will undoubtedly be considered a good selling point for buyers.
Electrical System Upgrades
Electrical system upgrades might also be in order, especially if you have old wiring or lack certain safety features, such as grounded outlets.
You want buyers to see themselves living comfortably in your home, and that means being able to use the various electronic devices that are now standard in homes.
Windows
Windows is one other area where buyers pay attention. New windows are far more energy efficient than older ones, looking better and functioning more reliably. New windows will make your home stand out.
These are all essential things you want to point out to buyers if they have been upgraded. If not, it would be a good idea to look at the present condition of these items in your home.
When selling a home, you can’t escape that a buyer will inspect your property with a fine toothcomb!
Knowing how to prepare for a home inspection is integral to a real estate transaction. You must understand that many home sales fall apart at home inspection!
Inspections for homes are one of the biggest hurdles you will face as a home seller; it only makes sense to understand why a buyer may become scared.
You should be intimately familiar with all the problems found at home inspections that cause home sales to be terminated.
We refer to these in the business as the top home inspection issues you want to avoid at all costs. Most buyers will ask for these inspection items to be fixed. An educated seller can prepare to ensure that none of these items are present before the for sale sign is even put on the lawn!
Minor Home Improvements With Significant Added Value Impact
Not all upgrades have to cost an arm and a leg. A fresh coat of paint and new carpets can completely transform your home while being easy on your wallet. Paint, especially, can be cheap when you do the work yourself.
Painting is, in fact, one of the best improvements to add value before selling. However, it would help if you remembered that going the color route could be risky without an interior designer or competent Realtor’s guidance.
Consultations are inexpensive and worth the money to avoid regretful color decisions.
Carpets are harder to do unless you have experience, but having a new carpet laid is still a bargain when considering its impact on your home sale.
New carpet makes older homes feel younger.
New flooring also inspires the perception of cleanliness, which is essential in selling your home.
People want to make their messes, not take over the old ones of the previous owner. Fresh carpet allows them to do so.
Here are some additional low-cost upgrades that can make a world of difference.
Expensive Home Improvements With Low Return
Some improvements are worth noting for their expense and relatively low return on investment. They may be necessary to make your home sell but do not expect to make more money because of them.
New Roof
A roof replacement is an improvement that usually does not do much for the price of your home, and you should avoid paying for one if you can. Sometimes it is unavoidable, but do not expect to get your money back in the sale.
Consider that buyers expect a home to be water-free, whether a roof or basement leaks. Rarely, however, do customers pay additional for this expense.
For example, picture two identical homes, except one has a ten-year-old roof and the other is new.
The house with the new roof will not sell for that much more than the home with the ten-year-old roof.
If your roof is older, knowing if it will need replacement is essential. One of the most prominent bones of contention in real estate sales after a buyer does their home inspection is whether or not the home needs a new roof.
If there is any question whatsoever that this may be the case, it would be wise to have a roofing estimate before putting your home on the market so you know the cost involved with the replacement.
Septic Systems
A new septic system is another such improvement. Yes, buyers will want a functioning septic system. But all customers care about is if your current one is functional. Unfortunately, replacing your septic system will bring you very little back compared to what it will cost to replace it.
It is one of the worst returning items with a home.
Swimming Pools
Lower-end swimming pools are another unnecessary expense. As appealing as television and movies make having a pool, most buyers are unwilling to pay much extra for the perk. If your home has no pool, do not put one in just for the sale.
Install a pool for your enjoyment and realize you will get very little return on investment when it comes time to sell your home.
This is especially true in colder climates where a swimming pool can only be used a few months out of the year.
Exterior Home Improvements That Do Add Value
While the above improvements add little to a home’s value, some do. Anything you can do to improve the curb appeal is a good thing.
You can replace your mailbox, front door, or any lighting if they don’t look great. More significant impact items include installing a new deck or a patio. Many buyers want these exterior spaces to spend time with their families and are willing to pay for them.
If you have an older driveway, getting it seal-coated can bring it back to life and make your yard pop!
The Little Upgrades That Add Value to a Home
Some little improvements are worth adding to your list if you have made any of them recently.
Security systems are an excellent little addition to a home, as are sprinkler systems and a central vacuum.
Lighting is also worth mentioning, especially if it has made your home noticeably more appealing.
Landscaping is another area where you can put in a little work for a significant impact. Adding mulch and some flowers can significantly increase your home’s curb appeal and costs nothing if you are willing to get your hands dirty.
If you have landscaped recently, add it to the list of improvements.
Keep Your Marketing List of Value-Added Home Improvements Front And Center
Your home might have many visible appealing features, but it is always intelligent from a marketing standpoint to point out everything in case there are things that buyers may have missed.
Think about your improvements thoroughly before putting your home on the market.
Make up a detailed worksheet you can provide your Realtor to use with their marketing. This upgrade list should be front and center while your home is on the market. Keep your upgrade list with the rest of the marketing materials so buyers have a comprehensive package they can take with them.
Many can blend together when buyers look at multiple homes in one visit. Having a reference for them, preferably with good photography, is an excellent way to keep your home fresh in a buyer’s mind!
Final Thoughts on Improvements That Add Value to a Home
Keep in mind that all the preparation in the world is not going to sell an overpriced home. You will also be behind the eight ball if you choose a lousy real estate agent.
Home staging does not sell an overpriced home or compensate for a real estate agent who doesn’t know how to market homes. Do your homework on the right price and real estate agent, and you will be a very happy camper!
Other Useful Selling Resources
- Home improvements that will pay off – some improvements are excellent for selling a house, and others are not. See some that will make a difference via HGTV.com.
- What are some things to do after selling my home? See the tasks that should not be skipped once your property has closed via Maximum Real Estate Exposure.
Use the above resources to make your home stand out from the crowd and increase the chances of getting what you expected from your home sale.
About the author: Bill Gassett, a nationally recognized leader in his field, provided the above Real Estate information on home improvements that add value before selling. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 37+ Years.
Are you thinking of selling your home? I am passionate about Real Estate and love sharing my marketing expertise!
I service Real Estate sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
