As a real estate broker, I get asked all the time, is it worth doing this or that to
our house before we sell it and will it help in getting us more money. Below is
an article that may help you.
Home remodels and upgrades have long been a way to increase the perceived
value of a home. But belts are tightening in the current economy, and
homeowners are turning away from big remodeling projects. In fact, the Joint
Center for Housing Studies of Harvard University predicts that spending on
home improvement projects will fall by 2.7% and 5.9% in the first and second
quarters, respectively, of 2024.
But just because homeowners are spending less doesn't mean they're willing to
spend nothing at all — especially when an improvement can result in a higher
sales price. The trick is to determine which projects will net a positive return on
investment and/or can be accomplished on the cheap.
That's why we've rounded up a handful of remodeling ideas that, according to
research, either offer a positive Return on Investment (ROI), can be
accomplished on a budget, or both.
Budget Projects: The Power of Paint Colors
Let's start off with some good news: one of the easiest ways to boost the value
of a listing is by simply changing up the paint colors, according to a 2023 Zillow
study. That's low-hanging fruit that nearly every homeowner can reach, no
matter their budget.
According to the study, homes with these colors sell for more than similar
listings:
Deep graphite gray kitchen: +$2,512
Midtone pewter gray kitchen: +$2,553
Dark gray in living room and bedrooms vs. pale neutrals: +$1,755
Terra-cotta brown bathrooms: +$1,624
There's bad news for homes with white kitchens, however: they sell for $612 less
than similar homes. Fortunately, if your seller has a white kitchen, all it takes is a
quick coat of paint in a more desirable color to fix the drop in perceived value.
Interior room colors aren't the only thing that impacts buyer perceptions. Zillow
says that a midtone gray, or a "cement gray," front door decreases a home's
sales price by $3,365. Meanwhile, a door that's a midtone rosy brown can bring
in an extra $300.
An earlier Zillow study from 2022 has more to say on the impact of door colors.
Slate-blue doors bring in an extra $1,537, and black doors a whopping $6,449
(though they can be controversial). Pale pink doors, however, should be avoided
— they decrease purchase prices by $6,516 (sorry, Barbie).
Bigger Projects: A Look at ROI
Sometimes your home needs a little bit more than a paint job. But before you
break out the sledgehammer, use a little bit of data on which projects are most
worth their while.
According to NAR's 2022 Remodeling Impact Report, only two remodeling
projects net a positive return on investment: hardwood floor refinishing and
installing new wood floors. Owners break even on insulation upgrades, so they
need not fear losing money if this is a needed project for their home.
A more recent study, NAR's 2023 Remodeling Impact Report: Outdoor Features,
looked at the ROI of outdoor projects. The report hints that it's all about curb
appeal and regular maintenance — standard lawn care service recouped owners
217% of its cost, while landscape maintenance offered a 104% ROI.
Homeowners broke even on landscape upgrades and installing an outdoor
kitchen.
The research above reflects broader national trends, and the ROI may vary in
different regions of the country. For example, an outdoor kitchen is likely a poor
investment in the snowy Northeast, but may be a stronger one in places with
year-round warmth like California, Florida, and the Southwest. Lean on your
personal judgment and experience when advising clients.
You can also rely on experts, such as pre-sale renovation firms like Revive, which
offer professional renovations aimed at increasing a home's market value.
So if you are looking at selling your home, give me a call so we can see just what
is the right next step for you.
Mary Cockburn
505-639-2090
MaryCockburn.Realtor@gmail.com
