Renovations to your home accomplish one major goal: to increase the value of your home. This value may be making your home suit your needs or fit your personal style. Renovations can also increase the value of your house when you sell it. Renovating your home can increase it marketability, but the increased sticker price may not fully recoup the cost. What you can do is find what renovations will give you the greatest return on your investment (ROI). These are the 5 upgrades that will produce the highest ROI when you sell your home.
*Note: costs will vary depending on the size of the project, the materials used, and where you live, so these numbers may not translate directly. Regardless, the ROI is high and a new upgrades benefit you and the buyers.
Renovation Cost: ~$7,211 (national average) | ROI $8,000 (111%)
Potential buyers are wary of homes that will need a new roof in the next 5-10 years. If they are serious about the house, they may seek a price reduction or a credit to replace it themselves, netting less money for you. Take the initiative and fix it now. Buyers love the words “new roof” in the listing description and you will easily recover the cost plus a little extra.
New Wood Flooring
Renovation Cost: $5-8 per square foot, ~$4,528 (national average) | ROI $5,000 (110%)
Another buyer turn-off is flooring that will need to be replaced. If a buyer is going to replace the floors, they will probably do it before they move in, adding more costs on their end. Hardwood floors are always in style and they add a lot of value to the home. Again, buyers love seeing “new floors” on the listing. Get it done now and sell your home faster and for more money!
New Garage Doors
Renovation Cost: ~$3,611 (national average) | ROI $3,250 (97.5%)
Replacing your old garage doors with new doors with modern styling add a variety of benefits to your home. They increase the curb appeal, which is great for attracting new buyers. New doors and lifters are also quieter and more energy efficient thanks to new motor technology and better insulation and sealing, respectively. This renovation will nearly pay for itself easily.
Renovation Cost: ~$9,582 (national average) | ROI $4,971-6,707 (50-70%)
Upgrading the HVAC system can cost as much or more than a new roof, but the benefits to the homeowner are worth it. Energy-efficient furnaces and air conditioning will lower your utility bills and are a priority to buyers. Some homes in the Pacific Northwest don’t even have air conditioning, so adding it when upgrading the HVAC system gives your house an edge. Don’t worry, nearly every home in the Boise Area has air conditioning to combat our summers.
New Vinyl Siding
Renovation Cost: $3.30-$6.70 per square foot ~$8,000 (national average) | ROI $5,040-6,640 (63-83%)
Giving your house a strong curb appeal is essential. Potential buyers totally judge a book by its cover, so give your home new siding so it can put its best foot forward. A new, clean outside tells buyers that the inside of the house is also clean and well cared for. While you won’t get a full return on the monetary investment, attracting more interested buyers is great for selling your home quickly.
Renovations are an investment, just like owning a home itself. Regardless of the monetary cost, think about the benefits that these renovations will add to the home and its owners.