Renovating your home is a numbers game. How much do you have to spend to fix up your home and what will it get you in return? When is it worth it to spend more on high-end finishes to get a better return on investment (ROI)? What are the best renovation projects and features that will appeal to the widest range of buyers when you decide to sell?
Home buying and design style are intensely personal choices, and not everyone will love the changes you make. However, Zillow used keyword analysis from its website and data from its blog to compile some averages of home-improvement projects. The results? By swapping out certain elements in your home, adding keywords to your listing and playing up certain aspects of your house, you may be able to increase the resell value and sell your home faster. Here are some suggestions that could be great investments.
The kitchen is one place that buyers examine closely when considering whether or not they will purchase your property. According to Zillow, a full-gut kitchen renovation averages a 75 percent return rate (average cost: $30,000; resale value/ROI: $22,500). However, you may be able to get more or less value depending on what parts you choose to renovate and which you leave as-is. Here are some updates that may be more worth your time and money.
Incorporate subway tile
Cost estimate: $2 to $10 per square foot
Keyword in listing description: Overall sold for 7 percent above expected value and 63 days quicker
Mix up the backsplash
Cost estimate: $50 to $150 per square foot (depending on material and pattern). Installation costs not included
Keyword in listing description: Overall sold for 4 percent above expected value and 46 days quicker
Cost estimate: $300 to $2,500 per appliance
Potential ROI: Will pay off over time, depending on usage and age of previous model
Put in a farmhouse sink
Cost estimate: $100 to $800 (depending on style/finish)
Keyword in listing description: Overall sold for 8 percent above expected value and 58 days quicker
Bathrooms also are a big factor home buyers consider, especially when it comes to the master bathroom. A full bathroom renovation will set you back, on average $12,000, and the resale value can average around $10,440 or 87 percent. However, you don’t have to do it all. Ditch the cracked porcelain sink for a classy stand-alone pedestal sink, or trade out your dribbling shower head for a luxurious massaging one. Here are a few areas to consider.
Add shaker cabinets
Cost estimate: $200 to $1,500 (depending on size, style, material)
Keyword in listing description: Overall sold for 9.6 percent above expected value and 45 days quicker
Integrate granite or quartz counters
Cost Estimate: $50 to $150 per square foot (depending on material)
Keyword in listing description: Granite sold for 4 percent above expected value and 38 days quicker, while quartz sold for 6 percent above expected value and 50 days quicker
Upgrade to a frameless shower
Cost estimate: $1,200 to $2,500 (depending on materials and size). Installation costs not included
Keyword in listing description: Overall sold for 5 percent above expected value and 38 days quicker
Cost estimate: $6 to $16 per square foot
Keyword in listing description: Heated Floors overall sold for 4 percent above expected value and 28 days quicker
General home upgrades
Many other areas in your home can be updated with a well-planned swap that could give you additional cash when it comes time to sell. Exchange dated brassy light fixtures for modern can lights and hanging pendants. Replace dead plants and finicky trees with vibrant flowers and shrubs in your front yard for a potential ROI of up to150 percent. From house-wide changes, like new windows to specific appliances, like the water heater, sometimes it’s the “boring” swaps that will make your home that much more appealing to potential buyers.
Install efficient windows
Cost estimate: $400 to $600 per window (including installation)
Potential ROI: $460 to $690 per window
Add pendant lighting
Cost estimate: $50 to $400 per fixture (depending on style and installation cost)
Keyword in listing description: Overall sold for 5 percent above expected value and 48 days quicker
Invest in a washer/dryer
Cost estimate: $450 to $3,000
Potential ROI: Will pay off over time depending on usage and age of previous model
Update the essentials (water heater, electric panel, furnace, etc.)
Cost Estimate: $2,000 to $4,500 (depending on item)
Keyword in listing description: Tankless Water Heater overall sold for 4 percent above expected value and 43 days quicker