Home Improvement Projects with the Best and Worst ROI, According to the Data
Thinking of spending the big bucks on renovation projects to get your home ready to sell? Before you hire that contractor, you'll want to know which home renovation projects are actually worth it. Will that kitchen upgrade give your selling price the boost you expect? Can you afford to skimp on landscaping?
The answers might surprise you. Let's take a look at the data, how it was compiled, and how you can use it to make the smartest choices for getting your home in the best possible shape to sell.
Here's What the Data Says
To compile this data, the real estate site HomeLight conducted a survey of more than 900 top-performing real estate agents across the country in the first three months of 2019. The survey consisted of more than 30 questions, both open-ended and multiple choice, across various topics related to real estate selling and the industry at large-including which home renovation projects create the best return on investment (ROI) for home sellers.
That information can be found in this infographic:
Best and Worst ROI on Home Renovation Projects
As you can see, the data found in general that smaller, less expensive improvements create a significantly greater ROI than major renovations.
Your ready-to-sell home improvement checklist
Now that you've got the information, where do you start? Here's our easy-to-follow checklist for getting your home ready to bring in a top price as quickly as possible.
Declutter. There's no doubt that a top-to-bottom decluttering is worth the time and expense. As HomeLight's Top Agent Insights report found, spending $486 on decluttering will result in a $2,584 increase in home selling price, or a 432% ROI. This is a task you can easily DIY using an online guide or template, like this one from Pure Fiji. However, with this rate of return, it might make sense to hire a professional organizer to help.
Deep clean. Once you've decluttered, it's time to give your home a thorough deep cleaning. This simple task results in by far the greatest ROI-by spending just $167, you can add $1,728 to your sale price, giving you a 935% ROI. Like decluttering, you can DIY this one if you like, or hire a cleaning company to give your home the spring cleaning treatment. Not only that, but according to Accent Maid Service, a professional cleaning can help you save money in other ways: appliances or other elements of your home that you think may need to be replaced, might actually just be in need of a deep clean.
Do some simple landscaping to add curb appeal. While fancy landscaping won't do much at all for your selling price, resulting in a -9% ROI, simple landscaping-adding fresh mulch, mowing your lawn, adding lighting to walkways-provides a solid ROI. According to the National Association of Realtors, 99% of agents say curb appeal is a critical factor in attracting a buyer, so some sweat equity and a modest financial investment will be well worth it.
When you're getting ready to sell your house, don't strive for huge transformations like you see on those home flipping reality shows. Instead, put some time and money into the smaller, more practical home improvement projects that will not only help your home sell faster, but for more money.
Need some guidance along the way? A top-performing real estate agent in your area can help you zero in on what attracts local buyers, price your home correctly, and make the home selling process go as smoothly as possible.