In recent years, more and more homeowners have been renovating their homes with no intention of selling their property. A recent survey conducted by LightStream found that only 7% of respondents are renovating their homes to prepare them for the market. Contrast this with the nearly 50% of respondents in the HomeAdvisor True Cost Survey indicating they want to make home improvements with no intention of selling their home. While the motivations for home improvement projects are shifting, there are still homeowners who remodel to sell. The Washington Post reports on a Zillow study analyzing home improvement projects that maximize returns on investment.
Two projects to avoid before you sell, according to Zillow, are a kitchen renovation and finishing a basement. Both these projects garnered about 50 cents on the dollar for homeowners, in part because of their high cost. In addition, a kitchen renovation could cost you buyers who would prefer a different style.
Among the projects Zillow says bring a better return are:
- New paint and landscaping: New paint inside and out along with basic landscaping and yard care cost about $3,000, according to Zillow’s researchers and are the most common and necessary improvements.
- Bathroom upgrade: A midrange bathroom remodel, such as replacing the toilet, tub and light fixtures, plus adding a double-sink, tiling the floor and hanging wallpaper, can result in a $1.71 increase in home value for every dollar spent, according to Zillow.
- New windows: Midrange windows can return $1.15 per dollar spent, according to Zillow.
