- The market is hot for sellers, but homeowners may still wonder how to put their best foot forward when listing their home for sale.
- A recent report shares three low-cost home updates that will earn back their money at resale.
- Soon-to-be home sellers can consider these projects as a way to boost their home’s value and interest among buyers.
If you’ve lived in your home for a few years (or decades), it likely will need a bit of sprucing up before you list it for sale. But it can be hard to know what buyers really want to see when they’re hunting for homes — and what they’re willing to pay for when they make an offer.
The 2022 Remodeling Impact Report
The National Association of REALTORS® recently released a report sharing the home renovation projects with the best return on investment (ROI) upon resale. The organization found that three of the lowest-cost home updates tend to pay off the most, earning a 100% or better ROI for sellers making updates.
Here are three projects that buyers love to see, and that will earn your money back at the closing table.
1. Refinishing hardwood floors
Cost estimate: $3,400
Resale value estimate: $5,000
Cost recouped estimate: 147%
Hardwood floors are in such high demand among buyers that NAR’s data shows that sellers can earn back 147% of the cost of refinishing their floors when they list their home for sale. This makes sense on a few levels: Well-polished floors will help a listing stand out online, which can lead to more buyers visiting in person. Once buyers enter and see the gleaming floors are as advertised, it may help coax an already-eager party into making an offer.
If your hardwood floors are covered in carpet, linoleum or have simply seen better days, the stats show that refinishing them will pay off when you sell your home.
2. Installing new wood flooring
Cost estimate: $5,500
Resale value estimate: $6,500
Cost recouped estimate: 117%
How much do buyers really want hardwood floors? Not only will refinished hardwood pay off at resale, so will brand-new wood flooring! For homeowners who still have carpet, laminate or other flooring in their main living areas, the replacement cost of new wood flooring will likely pay off at resale; NAR estimates these sellers will recoup 117% when closing on their home.
Note: This project includes real hardwood flooring, rather than laminate flooring. As a seller, you can make the determination whether you’d like to go with the “real thing” or a less expensive alternative.
3. Upgrading the home’s insulation
Cost estimate: $2,500
Resale value estimate: $2,500
Cost recouped estimate: 100%
If your home’s insulation is subpar, you likely experience inconsistent temperatures in your home, as well as high energy bills. Further, a home inspector may take note of your faulty insulation during their pre-sale inspection. To mitigate the issues you could face getting to the closing table, it may be worth paying for your home’s trouble areas to be reinsulated before you take it to the market.
NAR’s most recent data shows that this is a relatively low-price project, at just $2,500 on average. Best of all, NAR estimates you’ll break even at resale with a 100% return on investment at the closing table.
Get expert guidance before you sell
Not sure where to start as you consider selling your home? That’s where a local expert can come in handy! Remember to reach out to Edina Realty or your agent who can advise you on the most cost-effective, impactful changes you can make as you prepare to list your property for sale.