Joi's Real Estate Blog

Home Improvements & Return on Investment
Many of us enjoy making updates and improvements to our homes. It makes our homes a special place for us to live. These updates can also increase the value of your home when it is time to sell.

I often go into homes that have been beautifully updated. The sellers have done a wonderful job choosing where and how to spend their money, their selections are tasteful and they match the style of the home and make sense for the neighborhood. These people usually sell their homes quickly even in less than ideal market conditions. I also very often see people who have updated poorly or left things undone. Maybe they decided to save money and go for a cheaper solution or they did it themselves and ended up with crooked tiles. Generally, your updates should be appealing to a large audience and consider the value of the home and what is happening in the neighborhood. You do not want to over or under improve. At the same time, unique but tasteful touches can make the difference. People looking at homes start to recognize builder grade fixtures that can be found at every big box store.

So, go ahead and do that project you have dreamed of! See below the best improvements to make to get a return on your investment.

Joi’s Lucky 7 Home Improvements

Painting – Paint is the most amazing thing to me. It can completely transform a home or a room. It can provide a major update and makes everything seem fresh and new. And best of all it is cheap! For a little elbow grease, you can really transform a home. Don’t forget about painting trim and baseboards which incur a lot of damage and show dirt easily. Though exterior paint can be more expensive and often requires hiring a professional, it can be worth the cost. Curb appeal is important as it is the first impression of a home to a buyer.

Siding - If you live in an older home replacing old rotting wood siding or vinyl siding with fiber-cement (Hardiplank) siding can greatly improve curb appeal. Again, this is the first impression of the home and can greatly affect the buyer’s perception. People generally see 88% return on investment with this improvement.

Building a Deck – Buyer’s love outdoor living spaces. A fresh wood deck can recoup an average of 85% of its cost. Composites and other more expensive materials might not get as high a percentage return but if you can enjoy them for some time before you sell it can make sense. Maintain your deck by sealing and power washing regularly.

Updating Your Kitchen – The kitchen is one of the most used rooms in a home and an updated kitchen can help a home sell quickly. Kitchen updates can range from just replacing appliances and countertops to complete remodels including cabinets, paint, flooring, light fixtures, and backsplashes. You can save money by keeping cabinets and staining them to a modern finish or replacing only the doors and hinges. Minor remodels generally recoup 83% of their cost while major remodels recoup a little less at 78%.

Replacing Windows – Replacing windows on a home not only looks beautiful but can also help save on energy costs and help the environment. Double pane windows are more efficient and you can also consider solar screens. Homeowners can generally recoup about 83% of costs on window replacement.

Bathroom – Bathrooms, especially Master bathrooms, are a great place to spend your updating dollars. Again, you can do a minor remodel or a major remodel. On a small budget, updating can be as simple as paint and new plumbing and lighting fixtures. Major remodels could consist of new cabinets, sinks, toilets, floors, and shower/tub. Bathrooms generally recoup 68-78% of their cost.

Landscaping – The front lawn or plant beds are part of the first impression on a home. So, focus on the front first and then move to the back yard. Keep it simple, very neat and include pops of color for interest. With water restrictions and increased water bills, consider using low water and native plants. Even if the buyer isn't concerned about the planet, they are concerned about their pocketbook! Check out this City of Austin website for information on native plants:
http://www.ci.austin.tx.us/growgreen/plants.htm

Bonus Tip: Studies have shown that a front door can increase the value of a home by as much as $4000. The entry sets the tone for a home so you may consider replacing your front door to update the home with a new style. You can also paint or stain the door and put on new hardware to update on the cheap!