How to Increase the Resale Value of Your Home: A Seller's Guide

By Mark Soto

October 29, 2024

If you're planning to sell your home, you should know that first impressions are a big deal. Big to small, certain home renovations and improvements can increase the resale value of your home.

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Home Improvement Projects That Boost Home Value

If you’re trying to figure out how to increase your home value, these are the top home improvement projects you should consider doing.

Add A Fresh Coat of Paint

A fresh coat of paint can add style and give a new life to a home. It can cover up any faded or peeling paint and gives off the notion that a home is well maintained by its owner. Surprisingly, interior painting can offer a bigger return on investment than exterior painting since exterior painting often costs more. If you plan on selling soon, it’s best to choose a color based on market preferences rather than your own personal preference. Neutral colors often have a better chance of adding ROI rather than bright ones that stand out or aren’t as commonly used.

Expect an ROI return of 100% to 107% for interior painting and 50% to 60% for exterior painting.

Remodel Your Kitchen

One of the most impactful home renovations that add value to a home is a kitchen renovation. Since homebuyers will spend a large portion of their time in the kitchen, an appealing area can sway the value of your home. A kitchen remodel can include everything from refinishing cabinets to fully replacing them, replacing older sinks and appliances with newer models, adding granite countertops, and even removing walls to create an open space. You can typically expect a 70% to 80% return on investment for this task.

Upgrade Your Garage Doors

Garage doors can make a big difference in curb appeal, especially if your garage is located in the front of your home. Garage doors take up a large space and can be quite noticeable. Replacing existing doors with steel garage doors can offer the best energy efficiency improvements, durability for harsh weather, and aesthetics. Other quality door materials include fiberglass and aluminum. You can expect anywhere from an 88% to a 96% cost return for switching out worn-out garage doors for new ones. It’s a safe home investment where reliable functionality and aesthetics both play a role in making sure that the value of your home rises.

Do a Bathroom Remodel

An outdated bathroom can sway many prospective homebuyers from making offers on your home. A bathroom remodel can increase your home value by around 60% to 70% of what you originally spent. While it’s not the best project you can do, it can be worth it if your bathroom really needs an update. Property owners can do small upgrades like adding rainfall showerheads, replacing new faucets and bathroom and shower mirrors with updated ones, and better lighting fixtures. A higher-end remodel, like installing heated floors, complete shower remodels, or adding cabinets can come at a higher cost without the best return values.

Replace Your Roof

A new roof can offer peace of mind for any new homebuyer. Noone wants to deal with a leaky or damaged roof after moving into a new home. By replacing an aged roof with a new one, you can significantly boost the interest of more potential buyers. Apart from structural integrity and security, it can also increase the curb appeal of your home. If you plan on living in your home a little longer before you sell, it’s also worth the added comfort and peace of mind for yourself. New roofs can offer an ROI of 60% to 70%.

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Refinish Hardwood Floors

Refinishing hardwood floors can yield a positive cost recovery since refinishing is relatively cheap. David Mo, a realtor turned loan officer from Mortgage With Mo, explains that an average refinishing project can cost about $3,400, and you can expect to increase the value of your home by about $5,000 afterward. This offers an expected ROI of 147%. This is a great project to consider if your exposed wood flooring can use a new shine. Installing brand-new wood flooring isn’t a bad alternative either and a positive ROI is also possible. Hardwood flooring is still one of the most desirable floor materials today, with a timeless look and the ability to be refinished. New products also now offer additional resistance to water and scratches.

Proper Landscape Maintenance

Visual appeal is important when marketing your home, and putting money into revitalizing your yard is worth the cost to make an impressive first impression. Landscape maintenance comes with annual mulch application, lawn mowing, pruning of shrubs, and planting of approximately 60 annuals or perennials. According to David Mo, it can offer an ROI of 104%. This speaks to the value of maintaining the outside appearance of your home and the effect it can have on its value. Not every home renovation project has a cost recovery of 100% or more, but it’s no surprise that landscaping related projects do.

Hire Someone For Home Staging

You can increase the value of your home by making it more attractive through home staging without spending money on any home renovations. Professional home stagers can rearrange the furniture and redecorate your home to make it more appealing to potential buyers. According to the National Association of Realtors, home staging can increase the value offered by home buyers by 1% to 5%.

One important thing to consider is that there is an upper limit for adding home value through renovations. The biggest limiter is the neighborhood. Many people take into consideration the average home sale value for the houses in your neighborhood and additional home improvements will only do so much for the price. The current market conditions and how hot the current market is can also play a role.

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