Updating your home before putting it on the market can allow you to raise the asking price, but know that not all renovations will result in a return on your investment. To keep from throwing away money on the latest renovation trend, focus your efforts on one of three key areas.
- Something that helps the entire house.
Refinishing or updating your floors with timeless and durable materials is one of only two renovation options that all but guarantees you’ll recover at least 100% of the install cost. Insulation also offers significant ROI and has long-term benefits when it comes to energy efficiency.
- Creating or optimizing space.
If you have a basement or attic that can be converted into usable living space, the odds shift in your favor. Similarly, simple closet renovations that make it easy for potential buyers to envision their belongings in a neat and organized space can have a big impact.
- Total renovations with usability in mind.
If you have the budget, undertaking a complete over-haul of your bathroom(s) and kitchen can add significant value to your home, but only if you prioritize usability and practicality. Potential buyers will appreciate simple solutions.
When it comes to updating the outside of your home, investing in quality landscaping, and creating outdoor living space is never a bad idea. Just keep in mind that you may not get a 100% ROI on outdoor improvements, so approach any decisions with a solid budget in place.