Let’s be real – most homeowners think about renovations as, “I want a bigger kitchen, I want a better bathroom, I want that deck I’ve always dreamed of.” But in reality? Not all renovations will help sell your home. Some are compelling enough for buyers to pay top dollar while others will have you paying more on the dollar with no additional appeal.
Moreover, there’s a clear difference between money spent and value recouped. Buyer appeal for a wine cellar, for example, is there – but they’re not fighting over your house because of it. But something as boring as a new garage door (yes, you read that right) – its perceived appeal from the street is universal and strong.
What Appeals to Buyers?
When going into a prospective home, people don’t just wander around blind to their experience – they have expectations. To no one’s surprise, the kitchen and bathroom – namely, the number and how ‘current’ they feel – is what buyers prefer most.
A kitchen remodel, for example, can make a world of difference – with great returns on investment. Buyers are happy to see updated cabinets, a decent countertop and updated appliances. But when you’re adding custom everything at costs that would make a CPA’s head spin, you’re decorating (for your own preference).
The same is true for bathrooms; they must be functional, clean and relatively modern – though they don’t have to look like spas – definitely not pre-1987. A professional home remodeling company will assist in determining those updates that make sense while avoiding crossovers that won’t get buyers paying even $1 extra.
This is because people use their kitchens and bathrooms multiple times every day. When they’re old, dingy or non-functional, that’s one of the first things prospective buyers will notice. But when they’re remodeled in a decent manner (not even a financially advantageous way), buyers can see themselves living there.
The Things Buyers Don’t Think About
The things that remodel value-add are the least discussed, and ironically – they’re boring!
You’d be surprised how little attention people pay to garage doors (let’s hope they haven’t broken and brought attention to them at some point). Or how curious entry doors – fronts and backs – are received at all. Garage doors are an attractive element on the front of any house – they’re usually massive. Entry doors help secure not only questionable resources (like breakable items) but also the interior appeal – these comparatively cheap renovations make homes feel newer and well-maintained.
In fact, paint is something that can do wonders yet does not get much value-added consideration. Even as one of the cheapest ways to make any space feel or look newer/cleaner, interior paint creates an aura for the buyers – even if they can’t determine why it feels so good walking through their potential new home.
Lastly? There are certain attributes that people don’t look at – they’re not exciting – but they’re not even considered until it disappoints later on. The roof, windows and HVAC system – if buyers see they’re new or modernized, they’re not worried at closing that they’ve got a $10k issue on their hands when they first move in.
It’s All About Your Neighborhood
What works in your neighborhood may be all wrong for another. It’s not just about weather conditions (though they have their say) but also what buyers care for – and expect – in your market.
For example, an addition of a deck may be great in one neighborhood because outdoor enjoyment is possible; in another community, an entirely different outdoor option might work better or buyers appreciate what’s inside over outside space options. Think of how people truly live in your area versus what homes nearby have and you’ll do well!
Basements, for example, offer additional space but many homes with basements have other homes without them – buyers in these areas want finished basements and assess added value; otherwise, it’s an automatic loss.
The age of the neighborhood plays a role too; if most homes haven’t been redone since 1969 but yours was done last year, it stands out. If yours was done ten years ago but is considered one of the best homes in the block, don’t expect buyers to pay more than they’ve deemed based on additional neighborhood inventory.
Don’t Renovate Yourself Into a Deficit
This is how people shoot themselves in the foot without considering what’s happening around them. You can absolutely over-renovate your home – especially when all other homes around you are worth X amount.
If all homes (and potential homes) sell for $400k and yours is $485k – and no other homes are clear contenders – you’ll have buyers with overpriced aspirations looking elsewhere; you’ll find yourself stuck with an overvalued home with nowhere to go.
Renovating based on your emotions is another concern. Indoor pools? Themed rooms? Specific styles? They mean nothing to anyone but yourself and while they may look good for today, tomorrow’s buyer will be short-selling because it’s clear as day that you only cared about building your own empire without concern for anyone else.
Second-most likely getting people in trouble? Eliminating bedrooms. Maybe you want one giant primary suite because that’s what you’re used to from childhood – but if you’re an adult with children or neighbors – a 2 bedroom house isn’t desirable; square footage matters less than bedroom count when searching for houses online.
Consider When You’re Selling
It’s all about your schedule – if you’re selling in two years or less versus three years down the line, your strategy should differ.
Is it two years or less? Focus on those updates that most appeal to buyers! Neutral paint colors, timeless materials, things that feel current but not overly trendy so buyers walk in and know what they want to keep (and it won’t take too long). This way they’ll appreciate your upgrades and not need to worry about spending time/money first thing once they close your deal.
If you’re staying for an additional four years? You’ve got more leeway to work with what you like! But get inside your brain and know that whatever you’ve chosen will look dated down the road so an updated but outdated endeavor means nothing.
Foundation Fixings That Matter
Before you get excited about ripping apart your kitchen – and before this point gets lost in translation – what’s going on with the foundation? Is the roof looking good? Are windows drafty? Is the HVAC gasping like an elderly person?
These aren’t sexy renovations but they’re killers when it comes down to final sales; maintenance concerns cause buyer worries and a home inspector will find every nook and cranny complaint about the house that’ll never make it interesting until it’s time to sell – or worse.
Curb appeal goes into this category; people judge your home two seconds after they pull up from the driveway if landscaping is cluttered or peeling paint makes everything look tired – their first impression comes before they meet their second impression at the front door.
Value isn’t always added through significant renovations but those that ensure everything looks well-rounded enough – and functional – that buyers can breathe easy knowing their new space has been cared for all along trump the expectations more than most would realize.
