Remodeling Before Selling? Think Small
Some agents say homeowners shouldn’t invest too much in renovations because some upgrades may not yield better offers.
NEW YORK — Construction materials and labor costs have increased, but homeowners will still want to determine what parts of their home to renovate before putting it on the market.
Real estate agents say homeowners don't want to invest too much in renovations because some upgrades may not yield better offers from buyers.
Zonda, a residential construction-focused research company, says that homeowners replacing a garage door in 2024 recouped 194% of the $4,513 in average costs, providing it the most value among projects. The same held true for front entry door replacement, with homeowners recouping 188% of the $2,355 in average costs.
Many of the projects that generated high returns were minor exterior changes that made the house look nicer in photos, according to real estate agents. According to a 2023 National Association of Realtors® survey, sellers recouped 217% of the cost of lawn care, 104% of the cost of landscape maintenance, and 100% of the cost of overall landscape upgrades. Other in-house repairs that turned out to be worthwhile included refinishing hardwood floors. Remodeling bathrooms or kitchens or adding new bathrooms did not guarantee higher offers or quick sales.
Zonda added that adding an upscale primary suite only results in recouping 24% of the investment, while upscale kitchens only recoup 38% of the associated costs. Agents suggest thinking smaller, such as adding modern light fixtures or new cabinet pulls or reglazing a bathtub, to refresh older looking rooms. Other options include painting the walls, pulling up old carpets, washing windows, or decluttering.
Source: Wall Street Journal (01/02/25) Dagher, Veronica; Eisen, Ben
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