This post originally published 10/4/2017
A frequent question from sellers is “should I remodel [insert whatever bugs you most] before we list?” There are so many factors involved in this answer. The first item to consider is the condition of your home versus those around you. If you have a big hole in the ceiling, yes, get that repaired. If you just hated your counter top for the 7 years you’ve lived there, maybe that one doesn’t need to be addressed as kitchen decor preferences can be very personal. Remember, very few remodel projects return 100% ROI and regional influences matter. We suggest to our clients who really want to update a portion of their home that it (whatever the change is) may make the home more sellable but not necessarily worth more than the homes around it or even the current value. As the Savannah market is mostly a sellers’ market, keep in mind that remodels are more valuable in buyers’ markets than in sellers’ markets.
Now that you know how markets and regions can affect remodel ROI, what are some things that you can do to help your home sell quickly and for the most money possible? The following are a few suggestions that won’t break the bank and may put your home in the best position:
- Greige continues to be the hottest color for home sales. If you’re considering repainting or wondering what to do with that burnt orange wall that you love, consider greige and use accents to create your color impact.
- Curb appeal with inviting lawns, porches and landscaping will also help produce more value in the look of your home. Curb appeal can also include garage door replacements and entry door replacements possibly improving function and beauty.
- Window replacements are one of the few remodel projects that may help you recoup most, if not all, of your investment. (We made this upgrade a few years ago and I’m just grateful that the house is no longer drafty.)
What about projects that don’t make the most “cents” (pun intended). Two projects that do not produce a great ROI are additions to a home and back up generator. With that said, there are times when you absolutely should consider these remodels.
Additions can be a plus in the resale of your home if the addition brings your home in line with that of the neighborhood. For example, if most of the homes around you are 3 bed/2.5 baths and you have a 2 bed/1 bath home then an addition will make sense. The other reason to consider an addition is the need for more room prior to your move. Maybe you need to add space so that an elderly parent can more comfortably live with you. It may not make the most “cents”; however, providing a loved one with a comfortable and safe home may be the bigger need. (A side note: homes that provide living space for multigenerational families are now becoming more popular.) Now what about the back up generator? I can see the argument that these are not necessary and why a buyer would not want to shell out an extra $12000 for one. Again, I believe there are cases where this is more of a necessity than in others. You may live in a neighborhood that does not have underground utilities which provides more opportunity for power outages. Maybe your home is on a well and septic tank and, when power goes out, you have no water. Or, as in our case, while we have city water and septic service, we also have a grinder pump and, when power is out, we have water but cannot dispose of it through our septic system. After 4 days without power, we have decided that some sort of generator system may be beneficial for our home and family. (And once installed, we will probably never have another power outage again which would be exactly our luck!)
In closing, remodels are fun to plan and enjoyable when completed. When choosing to do them, keep in mind that they are for your personal enjoyment and comfort and not necessarily a great investment. Sometimes subtle, small changes will create the biggest bang for your buck! If you enjoyed this article and would like to geek out on the stats even further, please refer to the Cost Vs Value 2017 Report provided by Remodeling magazine.