Renovations That Sell: Insider Tips for Attracting Home Buyers

The current real estate market is a little turbulent, but there’s plenty of opportunity. Home prices are at historic highs, and buyers are willing to take on some small renovations, but the major home improvements – bathroom, kitchen, flooring, etc. – can be a worthwhile investment that pays off exponentially in the sale price.

If you’re thinking about renovating your home, either to improve its resale value to list now or in the future, here are the projects that offer the highest return on investment.

1. Update the Kitchen

Kitchens can make or break a home sale. Well-designed, modern kitchens can significantly boost property value, especially when key elements like the cabinets, countertops, and appliances are new.

However, it’s easy to go overboard and cut into your profits. Some kitchen remodels can cost upwards of $125,000. Make sure you’re putting those renovations to work with timeless designs, high-quality materials, and energy-efficient appliances that buyers know they can count on for years.

If you’re on a tight budget, you don’t have to gut and replace your entire kitchen. Even minor upgrades that modernize your space, such as refacing your cabinets, updating the hardware, or swapping old appliances for efficient, modern stainless steel can pay off when it comes time to sell.

2. Refresh the Bathroom

Bathrooms are an important renovation when selling your home. Like kitchens, bathrooms can be expensive if they need a full renovation, so buyers want the peace of mind of knowing the bathroom is in good shape.

That said, you can upgrade your bathroom for a substantial impact on sale price for a relatively low investment. If you’re doing a complete upgrade, add luxury touches like rain showerheads, radiant floor heating, vinyl flooring, and a double vanity that creates a spa-like retreat.

If you don’t have the time or budget for a full bathroom remodel, you can make minor repairs and upgrades that will have a huge impact. For example, refinishing the cabinets, upgrading hardware, and making small, stylish upgrades to the fixtures make a good impression on prospective buyers.

3. Improve Your Curb Appeal

The first impression on the buyer sets the tone for the rest of a home tour, which comes down to your exterior. Make sure you invest in landscaping, fresh exterior paint, and a clean entryway. For example, something as simple as replacing your entry door and garage doors can make a remarkable difference in how your home looks from afar.

If you have more room in your budget, adding outdoor entertainment areas like a deck, patio, or luxurious outdoor kitchen can be selling points. Think twice about high-maintenance outdoor upgrades like pools or hot tubs, however, as they are expensive to maintain or remove if a buyer doesn’t want them.

4. Replace Outdated Flooring

Flooring is a big and disruptive home renovation that buyers may prefer not to make. In addition, buyers are typically looking for hard flooring that’s easier to keep clean than carpeting. If you have old carpet or outdated hard flooring, consider upgrading with hardwood. Though styles come and go, hardwood is a timeless, natural, and versatile option that works with just about any decorating scheme and stands the test of time.

Even if you don’t have the budget to completely replace your flooring, you can still make budget-conscious decisions. For example, if you have a room in your home where the flooring is a little worse for wear, such as the kitchen or bathroom, consider just replacing the flooring there. You could also consider more affordable flooring options like quality engineered wood flooring that’s less expensive but still improves the look of your home.

5. Increase Energy Efficiency

Investing in energy-efficient upgrades is not only good for the environment but appeals to cost- and eco-conscious buyers. In fact, one of the renovations that can give you the most bang for your buck is heating, ventilation, and air conditioning (HVAC) electrification conversion. Though this is a pricey upgrade, it offers incredible return on investment.

There are other upgrades you can consider to improve your home’s energy efficiency and assure buyers that they will have affordable energy costs, such as adding insulation, installing energy-efficient windows, and upgrading your lighting to LED. Tankless water heaters and solar panels are some other options to consider.

Many energy-efficient options also offer smart home technology. If it’s in your budget, think about upgrading to smart appliances that further enhance the appeal of your home. For example, smart thermostats offer a lot of energy savings – especially in a big home.

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6. Replace Your Roof

If your roof is nearing the end of its lifespan, replacing it with a high-quality material like fiberglass asphalt can be a worthwhile investment. Though it’s a lot upfront, new shingles can come with a 25- or 30-year warranty, giving prospective buyers peace of mind that they won’t need to replace the roof anytime soon and that they’re covered if there are unexpected repairs.

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7. Create a Functional Basement

An unused basement offers a lot of opportunity to expand the living spaces and increase your home value, especially if your home is on the smaller side. It’s a relatively simple renovation that can be adjusted to just about any budget as well.

Your priorities should be lighting, insulation, and ventilation to make the space safe and comfortable. Then, consider how to spruce it up to turn it into a guest suite, theater room, extra family room, or home office. With more people working from home, remodelling that space to make it more functional can stand out to prospective buyers.

Get Your Home Ready for Market

Home upgrades are an investment that can seriously pay off in your selling price. Strategic planning is a key part of making your money work for you with renovations, so focus your efforts on energy-efficient improvements, updated kitchens and bathrooms, and improving your home’s curb appeal. If you can’t do a full home overhaul, prioritize upgrades that offer the highest return on investment and appeal to buyers the most. 

Author Information

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Michael Alladawi, CEO & Founder of Revive Real Estate, is a Southern California real estate veteran with a proven track record as a builder, investor, and respected home flipper. Michael created Revive Real Estate to share his industry knowledge and help homeowners maximize their profits when selling their homes. Michael's passion for his work is as big as his desire to create lasting partnerships. For Michael, it all comes down to how much value one offers, both in business and life relationships.