Crunch Some Numbers
Before you go too far, it’s crucial to have a realistic picture of how much you want to spend on home renovations. That way, you can prioritize where your dollars go and don’t end up spending more than you’ll get back, or worse, run out of funds before you reach your pet project.
When budgeting for renovations, some experts suggest the best rule of thumb is to avoid going beyond 10 to 15 percent of your home value estimate. To determine that number, Bigger Pockets points out you should order comps through an area real estate agent.
These professionals have a finger on the pulse of the local market and can look at your home, find similar homes recently sold and put together a realistic picture for you. You can order comps on your property by going online. Then, keep your calculator handy to help determine your upgrades.
Turn Necessary Into Beautiful
One of the smallest rooms in the house is an absolute necessity to all homeowners and it also ranks at the top when considering home upgrades. That little room is the bathroom and you should put it high on your list when deciding where to spend your renovation dollars.
On average, a bathroom remodel runs between $9,600 and $11,000, so if your home is worth $110,000 or more, it’s well within the 10 to 15 percent target range. In terms of ROI, a bathroom remodel promises up to 80 percent of your investment.
Boost the Heart of the Home
Kitchen remodels are a top contender when choosing where to put your renovation dollars. According to Dave Ramsey, most homeowners spend between $5,000 and $50,000 on a kitchen remodel, with a typical full kitchen remodel coming in at $64,000 and more restrained versions averaging $21,000.
Be sure to let your home value estimate guide you because it’s easy to get carried away on kitchen remodels. A gourmet-style kitchen can run you well over $125,000.
Amp Up Eye Appeal
They say that what house hunters see on the outside of the house will affect whether or not they want to see what’s on the inside of the house. With that in mind, consider boosting your home’s curb appeal through landscaping improvements.
If you’re ready to put in some sweat equity, by investing as little as $500 to $3,000 in plants and materials, you can potentially add between 5.5 percent to 12.7 percent to your home value estimate. On a $100,000 home, that’s between $5,500 and $12,700.
Revisit Color Schemes
Painting is something many homeowners are willing and able to do themselves and it’s also an opportunity to catch more buyers’ eyes. Of course, there is a wide range of painting projects one can do. Some are far simpler and inexpensive than others and yield a range of results.
You can have your front door painted for as little as $100 to $400, or DIY. Some research indicates homes with a charcoal, black, or smoky front door bring $6,271 beyond expectations when they sell.
Similarly, exteriors painted yellow sold for $3,408 less. Hiring a pro to paint your full exterior is smart and it’ll run you from $1,000 to $6,000 or more.
Neutrals are the general rule of thumb for interiors, noting red and brown walls drag home values down about $2,310.
When preparing to sell your home, make sure you have a clear idea of where to spend money on renovations. Get a home value estimate, tally your percentages, and prioritize where you want to spend for the best ROI.
Good planning can raise your home’s value in less than a year, leading to an optimal price and a quick sale.