Should I Upgrade my Home before Selling it?

If you are a fan of home renovation shows, you are well aware that certain features in a home will help you sell it faster and for a higher price. An updated kitchen or main bedroom suite, excellent curb appeal, and contemporary home decor are all pluses for buyers. These features add to the home value and benefit the new homeowner since they will not have to spend money on any upgrades you have already made - a win-win situation.

 

Here comes the caveat, though. Only a few projects will pay for themselves when selling. According to the Remodeling Impact Report published by the National Association of Realtors in 2022, only these five upgrades will recoup their costs or make you more money:

 

1) Hardwood Flooring Refinish- 147%

2) New Wood Flooring- 118%

3) Insulation Upgrade- 100%

4) New Roof- 100%

5) New Garage Door- 100%

 

Next in line are upgrades that will recoup more than 80% of the cost:

 

6) Basement conversion to Living Area- 86%

7) Closet Renovation- 83%

8) Fiber Cement Siding- 86%

9) Vinyl Siding- 83%

 

You might be surprised that kitchen or bathroom remodels are missing. The truth is that these are the most expensive renovations you can tackle, and their projected return on investment is only between 60 and 70%. 

 

Our advice is to consider carefully which features of your home you want to improve before selling it. Remodeled kitchens, bathrooms, main suites, etc., will all undoubtedly add to your home's value. In most cases, though, the money and time you spend on these projects will not result in a higher return on investment.