Adding Value To Your Home

Many clients ask me what home improvements they can perform in order to add value to their home. I say that it depends on how long you plan on being in your home, but if you’re looking to sell your home in the near future, here are the three things you should do:

First, look at the structure of the home like plumbing systems or your roof. If your roof is near the end of it’s life, it’s possible that Buyers will hesitate to put an offer in on the home because they realize there’s going to be a big financial outlay after the close of escrow. National studies show that you could recoup up to 80% return on investment by replacing your old roof.

Second is curb appeal. You want potential buyers to drive up to your home and see a clean and inviting home. Remember, you want Buyers to drive up and say “Hey, I could live there!”. So what should you do? You want the front of the house to be inviting and clean. If needed, add plants, fresh bark, replace the garage door, paint the front of the house, or even get a new entry door. Studies show that changing out your garage door to a new one will garner a 77% return on investment as well as a 90% return on investment for a new entry door.

And third, minor kitchen and bath remodels. Just like structural systems, if your kitchen and bathrooms are outdated, it may cause the Buyer to pause because of the additional financial outlay after the close of escrow. You could switch out the appliances, paint the kitchen a neutral color, or even paint the cabinets if they’re wood. Studies show that the return on investment is about 93% on a minor kitchen remodel.

And finally, be mindful of over-improving based on the value of your home and your neighborhood. For example, if you live in a home that’s valued at $200,000 and you spend $10,000 on a built-in refrigerator, chances are, you are not going to get the return on investment. And it’s okay if you don’t want to do any home improvements, just make sure that the cost of those improvements are reflected in the list price.