Warm weather really brings out people’s desire to clean and fix. Especially during the spring and summer months. According to a 2019 Trulia survey, 90% of the homeowners said they planned on doing some sort of revamping to their homes in the coming months. Even more interestingly, 17% of those planning to remodel also have plans to sell their homes within the next 2 years. This makes sense because updated or renovated homes are often more valued in the real estate market and tend to sell quicker than outdated homes. The bottom line is that buyers like to see that a home has been taken care of and is “move-in ready”.
Homeowners considering renovating their homes to eventually sell should evaluate the ROI (return on investment) in doing so. Is your home a major rehab case? Or will a few touch-ups and upgrades do the trick? Many factors could determine what you can afford, which projects would get you the best bang for your buck, and whether you’re just better off lowering the price of your home versus making huge changes to it before selling. These are things you should ask yourself before you grab your hammer and get to work.
It should be noted that a major home remodel might have a lower return on investment. As a comparison, a big kitchen upgrade costs an estimated $25,000 and according to NAR’s Remodeling Impact Report, only recovers about 57%. While smaller projects like refinishing hardwood floors cost about $3,000 and many homeowners can recover 100% of that project’s cost. Of course, these estimates vary.
Homeowners that want to give their homes a facelift for a reasonable cost and still add value to the property when it comes time to sell may want to invest in a few smaller projects. For example, adding granite countertops, a fresh coat of paint, new bathroom tile, or new landscaping can go a long way. These small upgrades are a great alternative if you don’t necessarily have the time or money to spend on high-end renovations. Any upgrade, big or small, will make your home more attractive to potential buyers.
Another spring-cleaning tip for homeowners is to not overlook necessary repairs or the power of a deep clean. Walkthrough your home, inside and out, and make note of areas of improvement. Small repairs and a little bleach can be beneficial in the long run.
Lastly, a note from the insurance professional: make sure your insurance covers your new changes. When it’s time to renew your home insurance, make sure your policy is adjusted to reflect the improvements because it is likely the value of your home has since increased. Also, don’t overlook unattached structures outside, either. This includes swimming pools, hot tubs, and gazebos. All of these could affect the value of your home and, therefore, impact your homeowners insurance renewal.
If you neglect to report these renovations, you run the serious risk of not being fully protected. After all, disaster seems to strike when you least expect it to.
So, if you plan on remodeling your home this spring or summer, keep these tips in mind.