How can you make your home a better investment? If planning to sell your home and you had only enough money for one improvement, which would give you the greatest return? In other words, what home improvement would give you the most "bang" for your buck? A new kitchen? A new bathroom? Landscaping? Finishing the basement? Painting inside or out? Will any of these improvements pay for themselves in raising the value of your home? The answer(s) might surprise you. Here, in order of their cost recovery, pay back, return on investment, however you want to phrase it, are the top ten improvements you can make to your home in preparation for placing it on the market (all costs are based on professional labor):
10. New vinyl siding
9. Deluxe bathroom (ceramic flooring, wainscoting, water-saver toilet, deluxe vanity, new medicine cabinet, fittings, etc.)
8. Basement conversion (vinyl flooring, paneling, suspended ceiling, closet under stairs, light fixtures, trim, etc.)
These are generally high ticket items, costing in the range of $5,000 to $7,000. Each of these improvements offers close to an 80 percent return on your money. In other words, you may recover almost 4/5ths of your investment in these upgrades in the increased value of your home.
7. Landscaping
6. Furnace replacement
5. Kitchen facelift
4. Standard bathroom
New countertops, flooring, appliances and cabinets can really help improve the look and feel of almost any kitchen. Likewise, the addition of shrubbery, trees, bushes and flowers, privacy fencing, and walkways really spruces up a home. Replacing a forced air furnace with a high-energy forced air furnace will actually save you money by reducing your heating costs significantly. And a new bathroom (toilet, vanity, tub, etc.) is never a bad idea. Each of these improvements offers almost a 90 percent return on your investment. Be careful with the kitchen, though. One can easily spend much more here than is required, or recoverable.
3. Central air
2. Exterior painting
1. Interior facelift
Surprised? Among the least expensive improvements, these three traditionally offer the highest pay back rate--over 100 percent. In short, every penny you put in here comes back to you directly in a higher resale value for your home, not to mention your own comfort! The exterior and interior painting (new carpet was included as well) are not only improvements but almost necessities if you are planning to sell within a year. New carpet gives a fresh look to every room, while the "curb appeal" of most houses dramatically improves with every new coat of paint.
Other improvements translate less directly into higher values. These include skylights (about a 40 percent return), new windows or doors and energy upgrading (including caulking, weather-stripping and new insulation) - about a 45 percent return. Interestingly, nationwide, fireplaces did offer a good pay back (near 90 percent).
If you want your home to be a good investment, you must maintain that investment to achieve the highest market value when it comes time to sell. For more information on the changes, large and small, you can make, contact Keeler Family Realtors.