As a seller’s representative, part of your job is guiding your clients on improving their property value before the house goes on the market. But what type of projects have the greatest rate of return?
First, we will tell you what the latest cost vs. value reports say about home renovation projects. Then, we will advise you on free or close-to-free tasks your seller can complete to increase the purchase price of their home.
12 Things to do to Increase the Value of Your Home
Your clients will ask you for advice on what projects to complete before selling their home. Here’s what the latest reports say regarding home improvement projects and return on investment. A handy homeowner can undertake some of these projects.
1. Flooring improvements
The National Association of REALTORS’ 2022 Remodeling Impact Report lists projects with the highest “joy score,” which is based on the happiness homeowners report with their renovations. “Hardwood flooring refinish” and “new wood flooring” have the highest joy score – according to the NAR.
In the same report, the NAR studied which remodeling projects have the greatest return on investment. It’s interesting to note that for interior projects, the highest percentage cost recovered was from refinishing hardwood floors at 147% and installing new wood flooring at 118%.
2. Make it bigger
Home additions also can go a long way to increase the value of your property. However, the exact numbers depend on the type of space you add and the quality of the project.
Here are some home addition projects to consider:
- Garage
- Sunroom
- Bedroom
- Bathroom
- Kitchen expansion
- Dormer
- Outdoor kitchen
- Deck
- Shed/Barn
- Carport
- In-law quarters
Remember that these types of projects require permits and inspections – and often the help of an architect and engineer.
3. Replace the garage doors
Garage door replacement sits at the top of two reputable studies about home remodeling. Although the national average on the cost of replacing a garage door varies, both studies show a return on investment of over 90%.
Replacing the garage doors is one part of increasing a home’s curb appeal. Look for more curb appeal tricks of the trade later in this article.
4. Remodel the kitchen
A minor kitchen remodel might include replacing the cabinet door fronts, hardware, and pulls. (Cabinet refacing can be a DIY project for homeowners who aren’t afraid to get their hands dirty.)
You may also encourage your sellers to replace old cooktops, ranges, and refrigerators with new energy-efficient models. New mid-range countertops and flooring, of course, make a huge difference – as does deep cleaning.
5. Remodel the bathrooms
A 30×60-inch porcelain-on-steel tub with a ceramic tile surround is a great starting point for a midrange bath remodel. Also, encourage your client to focus on a new single-lever temperature and pressure-balanced shower control. A solid-surface vanity countertop with integral sinks can be affordable. Upgrade to ceramic tile floors if possible. Finally, remind your client to focus on lighting.
6. Replace windows and siding
New windows and siding offer a considerable return on investment, but that investment will be pretty steep. As a real estate professional, you understand your local market and will be able to advise your client on which upgrades are most valuable in your area.
7. Add smart home technology
Encourage your homeowner to incorporate smart home features like thermostats, security systems, and lighting controls. Buyers may be drawn to the convenience of such systems and the potential energy savings that often result from such technologies.
Regarding energy efficiency, encourage homeowner clients to install energy-efficient appliances, windows, and lighting to attract environmentally-conscious buyers.
8. Add a fresh coat of paint
It is amazing how a fresh coat of paint makes such a massive difference to a room. Neutral, light-colored paint can make rooms feel larger and more inviting. Encourage homeowner clients to address any stains on the ceilings or chips in the paint.
9. Declutter
Some agents go as far as helping clients declutter. Of course, this is going above and beyond what is expected of a real estate agent – and might make some clients uncomfortable (or angry!) – so proceed cautiously.
Rent a truck (or a dumpster), hire some movers, and start by going through each room with your client and disposing of large items that are no longer needed, functional, or utilized.
Once you have helped with the oversized items, move on to the small belongings that add to the room’s clutter. Remember that potential buyers will open kitchen cabinets, closets, and other built-in storage, so encourage your client to reduce the clutter in these areas.
If your client has gone through the house and still has piles of belongings out in the open, encourage them to rent a storage unit for a short time.
10.Make necessary repairs
Encourage your client to fix broken windows, appliances, and fixtures. Roof leaks and insect infestations should also be addressed.
Most real estate agents find it helpful to have relationships with local contractors, painters, and handymen who can complete projects for clients who need help with maintenance tasks.
11. Complete deep cleaning
Hire a professional cleaning service and real estate stager to ensure your client’s home is photo-ready. Even if your client refuses to replace the house’s 30-year-old appliances, ensure those appliances are squeaky clean.
12. Tidy the landscaping
Encourage your client to mow the grass and make sure the landscaping is weed-free. Trim the bushes and add a few annuals to the flower beds.
Consider sharing this article with clients who will soon be preparing their homes to sell. For more helpful industry resources, subscribe to Colibri Real Estate’s Career Hub. Colibri Real Estate is dedicated to the industry – and your success. Check out our real estate continuing education courses for your state, and contact one of our educational specialists to find the answers to state-specific licensing questions.
Source:
“Remodeling Impact.” www.nar.realtor, 2022.
https://www.nar.realtor/research-and-statistics/research-reports/remodeling-impact.
