Thursday, April 15, 2021 / by Natasha Salter
Thinking of renovating to resale your home and want to get top dollar? Let’s talk about some popular home interior upgrades that can make quite the impact on your property’s resale value. Here are seven projects that have proven to be hot tickets with buyers!
- Complete Kitchen Renovation. Topping most buyers’ wish lists would be the kitchen of their dreams. Year after year, a complete kitchen renovation ranks number one on the National Association of Realtors (NAR) lists of both projects appealing to buyers and of projects likely to increase home resale value within their Remodeling Impact Report. Although it’s a big undertaking, the popularity of the project among buyers means you could earn your money back and then some by committing to a major kitchen overhaul. If a full renovation is not in the budget, consider small tweaks to the kitchen. For example; refreshing the backsplash, painting the cabinets or upgrading worn out surfaces.
2. HVAC Replacement. Energy efficiency is a top draw in the home market today, so it’s no surprise that buyers are looking for a recently replaced HVAC unit when shopping for homes. Replacing the HVAC unit to a more current model improves energy efficiency, the home’s heating and cooling capabilities, and lowers energy bills – a winning trifecta. In addition, this update may help you qualify for the IRS energy efficiency tax credit for properties placed in service before December 31, 2021. Speaking of energy efficiency, you can also consider upgrading your insulation.
3. New Master Suite. When it comes to expected value when selling the home, a master suite ranks just behind a kitchen renovation/upgrade and replacing the HVAC unit. In the bedroom, consider new flooring and fresh paint, while in the bathroom, swapping laminate counters for marble or quartz, switching plumbing fixtures to brass or copper, and painting cabinetry all can create a new, luxe look.
4. Bathroom Renovation. Powder room looking dated? Giving a half bath a quick renovation can add major ground floor appeal to a home since such small spaces often lend themselves well to trendy and bold design flourishes. Or, if a home is lacking that all-important second bath or half bath buyers are looking for, consider repurposing closets or other less-used spaces into another bathroom.
5. Basement Conversion to Living Area. A big way to improve livability in a home is to increase the usable square footage. Without building on an addition, a basement conversion is a shortcut that turns unused space or space formerly relegated to storage into a new living area. Converting a basement to a living area makes a house more livable and seem more spacious, which is why it ranks high on the list of what today’s buyers are looking for. NAR estimates this project could cost around $46,900 but could be recovered at resale to the tune of $30,000, meaning 64% of the project’s value would be recovered.
6. Flooring Renovations. According to NAR data, floors can pay off in a big way in terms of recouped earnings from an initial investment. New wood flooring has a recovered project cost of 106% with refinished hardwoods trailing a close second at 100%. This means that, for an estimated $4,700 investment in installing new wood floors, you could recoup $5,000 at sale.
For refinishing wood, a cost of $2,600 would likely be recouped at $2,600, as well. Replacing tile or carpet with new wood flooring can instantly modernize a space, or if the home already has hardwood floors, consider refinishing the wood to restore it to its former glory. By sanding out those scratches and putting a dent in those dings, refinished hardwoods bring back that brand-new look.
7. Attic Conversion to Living Area. Just as with a basement conversion, an attic conversion can take storage space and add to the footprint of livable space in a home. By converting an attic into usable living space, a home can gain a bonus room (or bonus rooms!) that can be used as an additional bedroom, office, game room, or for any other purpose. When it comes to possibilities for the extra space, the roof is the limit. For an estimated $80,000 project, sellers would likely gain back 56% of the value of the project at resale, according to NAR data.