Renovation projects that can add equity
April 10th, 2014
When selling a home, there are numerous steps homeowners can take to improve the closing price they receive.
Property values have been climbing during the housing recovery, but that doesn’t mean sellers shouldn’t do what they can to make a bigger profit before trading up to new property. With a combination of contemporary renovations, price appreciation and tight inventory that has many buyers vying for few homes, there’s a good chance a seller can walk away with some extra cash. Given the competitive buying market, those additional funds can be helpful for winning a bidding war. Here are a few renovations that add to a home’s value:
- Update the kitchen. Of all the hot spots in a home, the kitchen is probably the room where homeowners can reel in more buyers with a few renovations. Adding stainless steel appliances, new cabinets and perks like a pasta arm can encourage buyers to spend a little more for a contemporary cooking space.
- Overhaul the bathroom. Like the kitchen, bathrooms are a key selling point for buyers. Caulking should be replaced, and fixtures can be updated with brushed chrome variations for a more contemporary look.
- Apply a fresh coat of paint. New paint is one of the lower-impact renovations that can add to a home’s value. Both the interior and exterior of the home should be given a coat of a soothing color that does not call too much attention to itself.
- Replace the windows. A home’s energy efficiency is important to buyers, which is why upgrading to more insulated windows can be beneficial. Wood trim is popular, and there are vinyl windows for homeowners looking for a less expensive option.
- Buy a new garage and front doors. Sellers with old or beat-up garage doors should consider buying new ones, especially if they are clearly visible from the street. Steel front doors are a relatively low-cost upgrade, and they are more durable than wooden doors.
- Clean and remove clutter. Even a small home can appear large if it is clean and free of clutter. Straightening up can be useful for creating the illusion of an additional room, as having a spacious and organized garage or basement often conveys more usable space. Furthermore, cleaning has a low time commitment and cost in most cases, and a clean home appears more inviting to buyers.