Even if you function just fine in your home as-is, sometimes in order to sell your house, you have to put a little time and effort into a few home improvement projects. Even if you don't have the budget for a major construction project before selling your home, even a few simple kitchen upgrades could make a perspective buyer fall in love with your house and make an offer on it.
The catch is that it is likely the money you pour into improving your home is not going to be entirely recovered. For example, if homes in your neighborhood are worth $200,000, and you put $50,000 into fixing your house up, it's unlikely that you'll suddenly be able to sell your house for a whopping $250,000. The magic in making effective home renovations when selling a house is knowing what projects give you the highest return on investment (ROI). A few projects that are likely to pay you back include:
- Metal Roofing
Replacing your entire roof is probably not an endeavor you want to undergo when selling your home, but if your current roof is in poor shape, it's non-negotiable. Lenders who fund mortgages won't touch a home with a 10-foot pole if the roof needs to be replaced.
The good news is if you have the option replacing your rundown roof with metal roofing, you're probably going to be able to recover 85 to 95% of the cost of the project when you sell your home. Metal roofing is desirable to home buyers because it improves a home's energy efficiency by 25% and requires little maintenance. Furthermore, metal roofing experts say that a good metal roof lasts for 50 years or more. Insurance companies also love the fire resistance of metal roofs; your new roof could lower your homeowners insurance by as much as 30%. Studies show that homes with metal roofs sell for 6% higher than their counterparts with shingle roofs.
- Replacement Windows
The ROI you get from replacement windows is multi-faceted. Home improvement professionals suggest that about 77% of the cost of replacement windows will be returned to you when you sell your home. This is especially true if your existing windows have wood frames, which are rot- and leak-prone and can be a huge turn-off to buyers. On top of that, window technology has evolved so much in recent years that you can now get gas-filled windows that promote the heating and cooling efficiency of your home. There are tax credits available for homeowners who make eco-friendly upgrades, including the use of energy-efficient replacement windows. That takes a huge chunk off the bottom line cost immediately. And, of course, having new windows that are more efficient will help you wrack up your ROI through lower energy bills.
- Kitchen and Bathroom Upgrades
There are few home features that attract (or detract) a buyer as quickly as the state of the kitchen and bathrooms. Even a minor cosmetic update to your kitchen and bathrooms -- such as refacing the cabinets, upgrading the sinks and faucets, and replacing the outdated appliances -- can have a huge impact on your home's selling power. Kitchen renovations have an estimated ROI of 85%, and the ROI for bathroom updates is about 80%. More importantly, it could be the single reason you are able to sell your home at all.
- New Siding
Your siding is one of the biggest factors in your home's curb appeal. Outdated or dilapidated siding on a home makes the entire structure look like it's falling apart, whereas bright new siding on your home instantly puts it back in the prime of its life. In most cases, you can expect to recover about 80% of the cost of adding quality vinyl siding when you sell your home.
Have you ever invested in any home improvement projects in order to sell your home? What projects were worth the money to you? Please share your experience in the comment section below!