If you’re planning to sell your property and want to maximize your return, knowing what repairs and remodels add the most value is crucial. However, not all home improvements are created equal. In fact, many homeowners assume that any remodeling will increase the value of their home, but that’s simply not true. After years of hands-on experience, we’ve created this guide to help you navigate the world of home repairs, so you can make the right decisions that will yield the best results when selling.
In this guide, we’ll cover:
- Do you even need to remodel?
- What remodels give you the most return on investment
- How and where to start (and common mistakes to avoid)
- How to sell without making repairs and still get top dollar
Let’s dive in!
Do You Even Need to Remodel?
Before diving into costly repairs, it’s essential to ask yourself: Do you actually need to remodel your home? In some cases, simple cleaning or a fresh coat of paint might be all you need. There are two main factors that will help you determine whether a remodel is necessary:
- Market Cycle
- Condition of Your Home Compared to Others in the Area
When Remodeling May Not Be Needed
During “high years” in the economy—when buyers are plentiful—there’s less pressure to make major improvements. For example, if you own a basic home in a desirable neighborhood that only needs minor cosmetic work, like fresh paint, your property may sell quickly and for a great price even without a full remodel. Kitchens and bathrooms might be outdated, but they don’t necessarily need to be updated to sell.
When Remodeling is Worth It
Conversely, in a more stable or “low” market, buyers become more selective. If homes in your neighborhood have been recently updated and are selling for a premium, while your home needs repairs or updates, a remodel may be worth the investment. A small to mid-sized cosmetic update might cost around $25,000 but could potentially increase the value of your home by $60,000 or more.
When You Absolutely Need a Remodel
There are certain situations where a remodel is a must, regardless of market conditions. If your home has functional problems, such as:
- Broken floors
- Non-working appliances (HVAC, electrical, plumbing)
- Foundational issues
- Odors
- Leaky roof or windows
A home in disrepair is much harder to sell “as-is” because most buyers are not interested in fixing major issues themselves. Investors might be the only buyers interested, but they will likely offer a much lower price.
What Home Improvements Give You the Most Value?
Not all repairs and remodels provide equal returns. Some improvements may offer significant returns, while others are a waste of money. Let’s break it down:
1. Fix Broken “Functionality” Items
Repairing or replacing broken functional systems—such as HVAC, plumbing, or electrical—is one of the most important steps in preparing your home for sale. Buyers want to know that the essentials are in good working order, and this type of repair can increase both the sale price and reduce the time your home sits on the market.
2. Bathroom Remodels
Bathrooms are among the most influential spaces in a home. They offer some of the best returns on investment, with studies showing that bathroom remodels can yield as much as a 40% return on investment. A simple DIY bathroom remodel could cost between $2,000 and $10,000, and it could significantly boost your home’s resale value.
3. Kitchen Remodels
Kitchens are often the heart of a home, and an updated kitchen can significantly increase your home’s appeal. Upgrading appliances, adding a backsplash, installing quartz countertops, or repainting cabinets can all make a big difference. A full kitchen remodel might cost between $5,000 and $50,000, but it can greatly enhance your home’s value and desirability.
4. Exterior Improvements
While improving curb appeal won’t drastically increase your home’s value, it will attract more buyers and shorten the time your property sits on the market. Consider fresh paint, landscaping (trim bushes, remove dead plants), a new garage door, or replacing old windows. A DIY facelift for the exterior can cost between $3,000 and $8,000 for an average-sized home.
5. Interior Improvements
If the interior of your home is dated or cluttered, it may be worth investing in updates like fresh paint, new flooring, or decluttering. A simple makeover could range from $4,000 to $12,000, depending on the size of the home and the extent of the changes. While this won’t necessarily raise your home’s value significantly, it will help attract buyers and reduce time on the market.
How and Where to Start with Your Remodel
Now that you know what needs to be fixed, it’s time to figure out whether you’ll take the DIY route or hire a professional. The decision depends on your abilities, available time, and resources.
DIY vs. Hiring a Professional
If you’re skilled at home repairs, tackling some of the projects yourself can save you a lot of money. The figures mentioned earlier represent DIY costs for materials only. However, hiring a professional contractor can more than double your costs, but it may be worth it for the expertise and convenience.
How to Hire a Contractor
When hiring a contractor, you have two options:
- Subcontractors: These specialists handle specific tasks, such as plumbing, electrical work, or painting.
- General Contractors: If you have a comprehensive list of repairs, a general contractor will manage everything, including hiring subcontractors and overseeing the entire project.
Which should you choose? If your list of repairs is long and involves multiple tasks, a general contractor is a better choice, as it allows for a more hands-off approach. However, for smaller, simpler tasks, hiring individual subcontractors might be more cost-effective.
Important Notes:
- Hire a licensed contractor: This ensures that the work is done legally and that the contractor has insurance coverage. Without proper insurance, you could be liable for accidents on your property.
- Notify your insurance company: Let your home insurance provider know that you’re doing remodeling work. If anything happens during the renovation process, your insurance might not cover the damages unless they’ve been informed about the remodel.
A Faster Way to Sell Without Swinging a Hammer
If you’re not interested in spending time or money on repairs, but you still want to sell your house for top dollar, there’s an alternative. Consider selling your home “as-is” to an investor or real estate company like Neway REI. You can avoid the hassle of repairs and still receive a fair offer based on the current market value of your property.
Conclusion
Whether you decide to remodel or sell as-is, making strategic decisions about which repairs to prioritize can help you sell your home faster and for a better price. Focus on fixing functional issues first, then consider cosmetic updates in the bathroom, kitchen, and exterior. If you want to make the process even easier, selling your home directly to an investor could be the way to go.