Hold the phone. Homeowners spent $36,300 on average?
That means that, on top of all the other costs of selling a home, homeowners sink almost four grand into renovations that they won’t even get to enjoy.
When we did a study in 2016 on how much it costs to sell a home we found that someone selling a $200,000 house can estimate to spend about $13,000 exclusive of any renovations or repairs. If we add in Houzz’s average cost of renovations, that’s $50,000 down the drain. Not to mention that the cost will likely be even greater for houses with a higher fair market value.
We know you’re hoping that the money you spend renovating your home will turn around and get a higher sale price but the higher sale price probably won’t recoup what you spent. If you’re spending thousands of dollars just to attract a buyer and you’re not going to get back the money, you shouldn’t spend it in the first place.
That’s why we scoured the internet to find out what home improvements add the most value so that you increase your sale price without losing cash. We looked up the major home renovations most people attempt before selling and found the average return on investment for each. The results showed an overwhelming loss of funds for almost every renovation across the board.
We found the improvements that do get you a return on money spent both in cash value and buyer interest.
Before You Do Anything Else, Get a Baseline Estimate
Wait! Don’t start renovating yet! Put down that paintbrush! The best way to understand how home improvements affect your home’s value is to get a home value estimate before you begin.
Plug your address into HomeLight’s Home Value Estimator tool and you’ll get an average value estimate from five leading home value sites.
Got your number? Phew. Okay, first thing’s first.
Here’s How We Found the Home Renovations With the Highest Return
We went room by room and thought through over 50 different renovation projects.
We included the renovation projects with the highest return on investment, and added 7 others to give you a cross section of returns in various areas of the house.
Here’s How Each of Those Top 10 Renovations Breaks Out:
Refinishing Hardwood Floors: 0% of Investment Lost
Refinish your hardwood floors and you’ll get back all of the money you spent–but you won’t make anything. This renovation is a toss up. If your hardwood floors are extremely damaged, refinishing could make a big impact on the space and keep buyers from negotiating the price down.
Similarly, if you have hardwood hiding under old carpets, removing the carpet and refinishing the floors could be a big draw for buyers, especially in a neighborhood where hardwood is the norm. According to the National Association of Realtors, the average price to refresh hardwood floors is $2,500.
Bathroom Renovation: 35% of Investment Lost
Let go of lofty dreams for a spa bathroom in your old home and save your money for your new place. Bathroom renovations only recoup 65% of money spent, meaning that you’ll lose 35% of your investment.
Minor Kitchen Renovation: 20% of Investment Lost
Rethink your plans to replace all of your kitchen cabinets or change out the stovetop. Even minor kitchen renovations lose you 20% of your investment. If your kitchen is in desperate need for an overhaul, opt for affordable kitchen update ideas like refinishing or painting cabinets yourself. These ideas cost almost nothing and make a big difference in the space.
Fiberglass Attic Insulation: Full Return with 8% Extra in Your Pocket
Attic insulation could get back all of the money you spent and makes you 8% on top of that. This fix is pretty specific, so check in with your real estate agent to see if there’s a need in your local market.
Lawn Care (Seed): Full Return with 317% Extra in Your Pocket
Seeding your lawn to make it lush and green gets you all of your money back plus a whopping 317%. This improvement has the highest return on investment out of all the renovations on both Cost vs. Value and the National Association of Realtors’ lists.
Roof Replacement: 31% of Investment Lost
You probably don’t need to replace your whole roof–especially if you’ll only get back 69%. Get an estimate (and an inspection) from a roofing company, but usually you can salvage a roof by replacing damaged tiles for a much lower cost.
New Garage Door: 23% of Investment Lost
You’ll lose money if you replace your entire garage door, so if it’s in bad shape see if you can get it repaired. If it’s dirty or dated a good power wash and a coat of paint should be enough.
Siding Replacement: 24% of Investment Lost
Similar to your garage door, a good power wash should clean up your siding. If it’s damaged, see if you can just replace rotting or broken pieces.
Vinyl Window Replacement: 26% of Investment Lost
When you sell your house your windows should be spotless. That doesn’t mean you need all new windows, though. Be sure to replace broken panes and dysfunctional windows and give all other windows a deep clean.
Curb Appeal Landscaping Gets the Best Return on Investment
While seeding the lawn still came out on top, a general landscape overhaul also gets a good return and makes a great first impression on buyers. The bottom line: if you’re going to renovate before selling your home, put your money into curb appeal.