Typically, if you’re planning on remodeling your home, it means you’re planning on staying there for awhile and the investment has as much to do with your own enjoyment of your home as it does with increasing the value. Sometimes, though, potential sellers wonder if they should remodel or upgrade something in their home just before selling in order to make it more attractive to buyers and, hopefully, get more money or a quicker sale.
Generally, this is not a good idea. You are not likely to recover the cost of the remodel. The only time I encourage sellers to invest more money into their home is if there’s a clear material defect that will make it difficult to sell. If the kitchen is dated, that’s fine, especially since the new owners likely have a different vision of what a dream kitchen is than you do. If the carpet is older but still in okay condition, it’s also probably a good idea to just leave it as is and maybe offer a flooring credit. Again, the new owners might want a different style or may want hardwood or vinyl flooring.
That said, if the cabinets or counters are heavily damaged or the carpet is heavily worn, replacing them might be worth it. Many people may have a hard time envisioning what a home may look like fully remodeled or with items fixed or they simply want a truly move in ready home.
In their “Remodeling 2024 Cost vs. Value Report”, Zonda Media listed the following projects as recouping their investment (data from the Spokane market specifically):
- Garage Doors (227.5%)
- Entry Door (Steel) (186.3%)/Grand Entrance (Fiberglass) (100.3%)
- Manufactured Stone Veneer (137.5%) – This addition will depend a lot on the style of your home.
- Minor Kitchen Remodel (114.3%) – By comparison, a major kitchen remodel will only recoup 55.4% and what constitutes minor vs. major is highly subjective to both you a the potential buyer. The national estimates for a minor kitchen remodel only recoup 96.1%.
If in doubt whether to take on a particular project before selling, the best thing to do is get a couple of bids from contractors and then have your real estate agent give you their estimate on how much it will increase the value of the home. Remember, though, that while the bid from the contractor will be pretty close to exact, even the best real estate agents can only give an educated guess on how much a particular improvement will add to the value because, again, it’s all subjective.
At the end of the day, the most beneficial home improvement you can do is making sure the house is clean and tidy and the outside is free of junk or yard debris. Do things like pressure wash the driveway, patios, and walkways. Sweep away the cobwebs from around the entry. Plant some colorful flowers if it’s the right season and mow the lawn. All these things cost almost nothing other than your time and will do wonders in attracting buyers.
Two other great resources for remodeling costs are the National Association of the Remodeling Industry’s Remodeling Impact Report (2022 is the most recent) and Pillar to Post Home Inspectors Pillar to Post Cost Guide. Both of these reflect national data and estimates.
