It’s always worthwhile to invest in some improvements in order to boost your home’s value before selling. Home renovations can often improve the functionality and enjoyment of the home, but some projects perform better than others when the goal is to increase the property’s resale price. All renovations are NOT created equal, and some projects will translate to much larger increases in the bottom line, relative to their cost.
To understand how to maximize price, it’s helpful to think about what’s important to buyers, and how buyers are searching for properties, especially in the current market. In this guide we will look at which home renovation projects provide the best “bang for the buck” to increase your home’s value.
First impressions are crucial for buyers, so optimizing your home’s curb appeal is a must. Usually, a front exterior photo is the first image that a buyer will see when looking at a property listing. And since open houses and private tours have become more difficult, more and more buyers are starting their searches online (some are even managing the entire process digitally). Many buyers will also use street view or drive by in person to scope out the home and surrounding area. So it’s important to make sure that the front yard, entry, and facade of the home look as clean and inviting as possible. Projects to spruce up your home’s curb appeal can include:
Since the majority of buyers will look at listing photos and video online before ever seeing a house in person, the importance of the first impression also extends to the interior of the home. Especially in a competitive market like we’re in now, buyers will quickly skim photos and make snap decisions about whether a home is worth exploring more. Whether a buyer is walking through the front door or perusing photos online, it’s important that the interior of the home appears clean, bright, tasteful and free of clutter. A few renovations to achieve the “wow factor” are:
Indoor/outdoor living has never been more popular, and having outdoor space that is usable for living and entertaining is more important than ever – especially in a market with a mild climate like Southern California. And since the start of the pandemic which forced most of us to stay home, more and more people have been looking for homes with good, usable outdoor space. Buyers want gardens, patios and yards where they can bbq and dine outdoors, and enjoy a bit of nature and fresh air in privacy. The most important (and cost-effective) improvements for a dreamy outdoor space are:
Now more than ever, prospective buyers want features to improve the connectivity, convenience and energy efficiency of their home. While some smart home systems can be costly and intrusive to install, there are many options to easily add technology to an existing home.
The last piece to consider is the timeline, and your goals with the renovations. Are you making upgrades to improve your enjoyment of the home, or solely to boost the value for resale? If you and your family plan to enjoy your home renovations, then it might make more sense to splurge. But if you want to invest in home projects just to maximize value when listing your home, then make sure to be intentional with where your dollars are spent.
A good agent knows what sells, and can advise on which updates to invest in to maximize your home’s final sales price. Consult with your listing agent early in the process, before starting on renovations, to get up-to-date intel on what buyers are looking for, and to strategize on the best places to spend renovation funds. And of course, reach out to Urbana Real Estate if you’d like to discuss how to get started!
To achieve a quick sale and the highest possible price, it’s crucial to polish your home’s image to make it as inviting as possible to potential buyers! In this guide, we lay out a step-by-step process to make sure you are covering all your bases when preparing your home for sale.
Part 2 – The continuation of our podcast-style interview with a lender! In this interview we dive deep into the topic of loans to answer some of the biggest questions, including what mistakes you should avoid!