What adds more value to your home: interior or exterior improvements?
If you are looking to increase the value of your home, whether it’s to sell it soon or just to start increasing its value for a later date, you might be wondering what types of upgrades will add the most value, to the home. ‘inside or outside. The short answer is that it depends, according to experts, but here are some tips to consider for either option:
The pandemic has changed all of our lives in many ways, and this may play a role in the importance of exterior home improvements, says Gary Grewal, financial planner and author of Five financiers. “With so much work from home and the pandemic pushing people outside, many people have become accustomed to eating, exercising, working and playing outside. Backyards are becoming the new centers of attention for owners.
First impressions certainly count when potential buyers or appraisers come to visit your home. “Exterior curb appeal goes a long way and should in no way be overlooked when looking to upgrade your home for resale,” says Betsy Moyers, Co-Founder, Creative Director and Chief Designer of Retreat Design.
Focus on small upgrades
However, the improvements that will add value to your home can be very specific to the local market, says Michele Harrington, COO of First Team Real Estate. “If you’re ready to sell in the immediate future, any large-scale upgrades, inside or out, won’t be a good idea, as chances are you won’t get a return on investment of 100% or more. “
Small-scale exterior improvements can provide the greatest value, she says. This includes a new front door, new garage door, and fresh landscaping.
Moyers agrees that simple exterior improvements are the best place to start. Like cleaning and cleaning overgrown brush to change the curb appeal of your home. Other simple exterior upgrades that make a huge difference include giving your home an inviting new face for buyers’ first impressions. Don’t forget to paint your front door a welcoming shade… we recommend a sunny yellow, classic red or aqua blue, “adds Moyers. If you want to take it up a notch, you may consider add a swing, outdoor seating or an enclosed porch.
Video: Home Renovation Essentials to Add Value to Your Home (Buzz60)
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Marty Basher, Home Design and Renovation Expert at Modular Closets, recalls that minor exterior improvements are a great place to start because they don’t cost that much “and will actually increase the resale value of your home by five to five. hundred “. He recommends replacing a garage door, fixing any broken siding, and paying for the house’s exterior cleaning, which can increase a home’s value from $ 10,000 to $ 15,000.
If you’re in a position to spend a little more, Justin Goldman, CEO and co-founder of RenoFi, which provides funding for the renovation, says decks and patios are a good next step. “These are less expensive than bathrooms and kitchens – around $ 10,000 to $ 30,000 – depending on size, materials and complexity, but generally offer a great return on your investment. “
While the exterior gets the most attention, there are some significant upgrades to the interior that will make a huge difference to a potential buyer.
Focus on kitchens and bathrooms
“Inside, the key to a buyer’s heart is an upgrade to the kitchen,” Moyers explains. “80% of homebuyers say they would prefer a home that is ready to move in over a home that needs work. Even though this is a minor refresh, we can’t recommend enough that you put in a little effort to modernize the heart of the house. She recommends changing cabinets, replacing faucets and hardware, painting and changing lighting.
Now, a kitchen remodel won’t come cheap. A total remodel can cost anywhere from $ 70,000 to $ 100,000 according to Goldman, but it’s worth it if you’re in no rush to sell.
In addition to kitchens, improving a bathroom is essential, according to James Chapman, director of Bella Bathrooms. “A modern and stylish bathroom attracts potential buyers. Replace outdated plumbing and lighting fixtures and make sure everything is working fine. Repair problems such as water leaks. Paint it with neutral colors for a clean and fresh look.
“Minor bathroom and kitchen renovations offer the highest average return on resale,” says Andrew Latham, Certified Personal Finance Advisor and Editor-in-Chief of SuperMoney.com. “If you still have money left, try creating additional living space for your home by converting an attic or basement into a bedroom or hobby room. “
Whether you’re making interior or exterior upgrades, keep in mind that most renovations only provide a 70 percent return on investment (ROI), says Goldman, who provides the funding for the renovation. “You shouldn’t necessarily expect to make a profit or make money on your home improvements. And I can’t pick the interior or exterior upgrades and say which one will increase the value of the house. It really depends on the project and the real estate market you live in, ”Goldman adds.
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This article originally appeared on GOBankingRates.com: What adds more value to your home: interior or exterior improvements?