If you own a property and are looking to sell or rent it, investing in certain home improvements can drastically increase the asking price. In fact, a JLL study found that spending on tenant improvements rose 10% in 2017 and 13 percent in 2018.
The concept is simple: the nicer the house or apartment, the more it can cost to purchase or rent. However, not just any home improvement project will guarantee an increase in the return value. Here are a few suggestions for those wanting to increase the value of their property.
You Have to Spend Somewhere
In 2018, there were $394 billion in total home improvement sales in America, so knowing where to invest your money in updates is going to be the most important part of renovating your home. The biggest thing to note when aiming to increase property value is that too much decoration or personalization with tiling or wallpaper does not sell well. Avoid over-stylized decor or even bright colored wall painting as it can be a turn off for buyers. Even though you might like a unique look, it can make it difficult for potential buyers or renters to see themselves in the space.
Similarly, high-cost projects like adding a pool, buying the most expensive appliances, or updating the flooring throughout the house won’t always pay off. Particularly, updating the floors is a game of chance. You could put all the time, money, and effort into updating to hardwoods throughout, and instead, the buyers enjoy carpet or tiling. When it comes to selling a property, curb appeal is everything. Only invest in projects that yield a higher ROI.
How the home looks from the outside is going to be the first impression you make on your potential new homebuyer or tenant, so you want it to be a good one. Nearly 90% of real estate agents encourage homeowners to invest in landscaping prior to selling. Making sure the yard is well maintained and looks pretty with various flowers and shrubs will be a subtle but important tactic toward making the home more appealing.
The same can be said for your roofing and siding. If you have worn off shingles, damaged siding, or even leaking gutters, the potential buyer won’t be impressed. If your goal is to increase return value on your property, look into landscaping and roofing services.
Don’t Forget the Kitchen
While buying the most expensive appliances won’t guarantee you an increase in the return value, that’s not to say that spending money in your kitchen won’t. New, functioning appliances are better than expensive appliances, especially if they’re stainless steel. Less expensive upgrades, like changing fixtures to sinks and cabinetry, are a better way to increase return value in the kitchen.
Similarly, a fresh coat of paint can go a long way with buyers, especially in the kitchen. Like mentioned before, you’ll want to make sure its a more neutral color than something bold or bright. Homeowners can always repaint a room, but you could scare them away with your personalization if they can’t envision their style in the space because of it. In the kitchen, you want the cabinets and appliances to stand out more than the walls, which will likely get a little dirty because of messy cooking experiments anyway.
Knowing where to spend your money and where not to spend your money is an important part of increasing return value. If you want to get the biggest bang for your buck, be sure to do the research specific to your area for the best results.