Maximizing ROI With Home Remodeling
If you are considering selling your property, understanding the return on your investment (ROI) is essential. Zonda Media recently unveiled its 36th annual Cost vs. Value report, highlighting which home renovation projects offer the best return on investment. This year's report confirms the established trend that exterior replacement jobs tend to bring about a greater financial reward.
The reason for a high return on exterior projects comes from the time-honored expression: “First impression is everything”. If potential buyers see what they consider to be a run-down exterior, they tend to be thrown off from making an offer. If a property looks well taken care of, they tend to be more willing to spend on a property.
This year,
there are 2 exceptions:
86% RETURN | Minor kitchen remodel
67% RETURN | Midrange bath remodel
The average seller can expect an 86% return on a light touch to the kitchen and a 67% return on a modest bathroom renovation.
In today’s tightening economy, buyers want to feel like they are making a good investment. They want workable kitchens and bathrooms, not more work to take on.
MINOR KITCHEN REMODEL
When remodeling your kitchen for selling, upgrading appliances to new, eco-conscious models should be at the top of your to-do list.
81% of potential buyers list eco-friendly appliances as an essential home feature
National Association of Home Builders
In the current market, web appeal is EVERYTHING. Great listing photos are key to a successful sale. Upgrading a kitchen will stand out to buyers and make them more likely to view the property in person.
Another way to add appeal is by swapping outdated fixtures, hardware, and other small touches for modern pieces. This will greatly elevate your space without breaking the bank.
In the Minneapolis area, a minor kitchen renovation earned sellers 16% more at closing compared to a major remodel in 2022 (www.costvsvalue.com)
A few ways to accomplish minor kitchen upgrades:
Replace cabinet front panels
Replace drawer fronts
New hardware
Replace countertops
New paint
Replace appliances with energy-efficient models
MIdrange BATHROOM REMODEL
There are 2 kinds of rooms that sell houses: kitchens and bathrooms.
If you thinking of selling your home, there is no need to gut the entire space for a remodel. There are a few smaller ways to update the space:
Replace fixtures like shower heads, faucets, and sinks
Replace the vanity
Replace lighting with bright, modern light
In addition to the kind of remodel, workmanship and materials used also contribute to your overall ROI. Before starting a remodeling project, it’s important to consult with a trusted professional to create a plan, get proper permits, and advise on execution.
Get started on your remodeling journey with a free consultation today!