Home Upgrades That Pay Off (and Those That Won’t)
Selling
Sure, you love your home but now you’ve decided to sell, so now you need to make sure potential buyers will love it even more. To help you figure out what you should fix, replace or just leave “as is,” we’ve rounded up some of the top home upgrades that pay off (and those that won’t) to get your home in selling condition. Complete with tips to help you prioritize and budget your presale remodeling projects and home upgrades, let us help you sell your house as quickly and profitably as possible.
Avoid Deal Breakers with Home Repairs
While they won’t add much to the sales price, repairs are necessary for those appliances that need to be fixed or replaced in order to sell your house or pass an inspection. Without them, the sale may not happen at all.
Allow yourself one to two months to get your home in the proper selling condition before putting it on the market. This gives you plenty of time to take inventory of your appliances and address any last-minute surprises. You may even consider hiring a home inspector before putting the home on the market to avoid any deal-breaking repair surprises.
Average Appliance Life Expectancy
Let’s help you make a decision about replacing appliances before you sell a little easier. This data, collected from the National Association of Homebuilders (NAHB) and other appliance manufacturers, provides a good overview about average life expectancies:
- Clothes washer or dryer- 10-14
- Water Heater- 11-14
- Hot Water Boiler- 20-30
- Furnace – 18
- Furnace with heat pump- 15
- Central air conditioner- 15+
- Humidifier- 8
- Dishwasher- 10
- Electric Range- 17
- Gas Range- 19
- Refrigerator- 11-13
- Freezer- 16
- Microwave- 11
- Sinks and faucets- 13-20
- Toilets- 50+
- Disposal- 10
- Paint – Interior- 5-10
- Paint – Exterior- 7-10
- Wallpaper- 7
- Carpeting- 8-12
Not sure how old your appliances are? You can find it in the owner’s manuals that came with your new fixtures and appliances or contact the appliance manufacturers.
If any of the above have been around longer than the average life span, you may want to consider leaving it as part of the purchase price since moving costs can tend to be more than the appliance is worth at this point in its life. But remember, first impressions are key; if a buyer notices any red flags, they may not give your home another chance.
Get the inside scoop from your realtor about your neighborhood specifics so you can best decide which projects are best repair, replace or upgrade.
Home Upgrades That Pay Off
Upgrades, on the other hand, can be a little trickier. Home improvements have the chance to help you sell your home faster, save on mortgage interest, property taxes and insurance costs. And when it’s time for your home to hit the market, your house will appear more desirable than the competition. So, you might be looking at things in or around your house to fix up or replace in order to make your home more profitable.
But tread carefully. Do too much and you’ll lose money. Do too little and the end result may be less-than-desirable.
To help you find the improvements that bring the most return, Remodeling magazine has been publishing a “Cost vs. Value Report” since 1988. They compare data on how much different home improvement projects are worth in 100 different markets nationwide. Of course, the return on investment trends can vary from neighborhood to neighborhood.
Some key influential factors that contribute to a gain in remodeling project’s payback include bigger and pricier projects, increasing new-home prices, curb appeal and energy efficiency.
Among those topping the list of projects that see the biggest percentage gains in cost recouped (bang-for-the-buck) include:
- Attic insulation project – energy-efficient fiberglass
- Manufactured stone veneer
- Midscale and upscale garage door replacement
- Steel entry door replacement
- Fiberglass entry door
- Minor kitchen remodel
- Deck addition
- Window replacements
- Roofing replacements
- Basement remodel
- Back-up power generator
- Siding replacement
- Grand entrance upscale
- Two-story addition
- Family room addition
One of the quickest returns on investment is to invest in a new front door. Of course, a fresh coat of paint on your current door would help, too.
Home Upgrades That Don’t Pay Off
In contrast, projects that have the worst return include:
- Composite deck addition
- Bathroom addition – midrange and upscale
- Upscale master suite
- Upscale bathroom remodel and addition
- Major kitchen remodel
You may think every homebuyer shares your same dream of a beautiful bathroom with heated floors, but they don’t. Bathrooms are one of the worst returns on investment on this list; a pretty expensive miss.
It can be a tough battle deciding between the economic reality of what needs to be repaired, replaced and how to avoid potential deal breakers. Just remember, the simpler the home upgrade project, the higher chances you’ll have a positive impact on the value of your home.
