The Best Home Renovations That Profit at Resale

Are you planning to sell your house this spring? If you’re like most homeowners, you’ll consider doing some remodeling first, whether it’s simple cosmetic work like repainting or larger repairs like replacing cabinets or bathroom fixtures. bath. But not so fast.

You may be surprised to learn that not all home improvement projects add value when you sell your home. To find out which ones add the most value to your remodeling budget, Remodeling’s annual “Cost vs. Value” or CVV report can be a great resource.

Each year, Remodeling releases a report that compares the average cost of 22 popular remodeling projects with the value those projects bring in at resale. The publication surveys more than 6,000 real estate agents across the country, providing each with project descriptions, photos and illustrations, construction costs and median home prices for their market, then asks how much value each project adds to the selling price of a house. Statistics released in 2024 reflect 2023 costs and values ​​based on 2023 home sales.

The results are often surprising. This year, for example, the top-performing project nationally was the replacement of a mid-range garage door, which, at an average cost of $4,513, adds $8,751 in value to the sale, for a return on investment of 194%.

The same project in the New England Remodeling market – which includes the Boston, Burlington, Hartford, Connecticut, Portland, Maine and Springfield metro areas – generates a whopping ROI of 314.7%, with an average cost of labor of $4,365 and an additional value of $13,738 at sale. .

In fact, the four top-performing remodeling projects in New England this year were all exterior improvements, with steel door replacement, manufactured stone veneer, and fiber cement siding replacement returning 236.2%, 151% respectively. .7% and 118.3% of the cost. , when the house is sold.

Why are curb appeal projects such a good investment?

“When someone approaches a house that looks great from the outside, they are much more willing to buy it,” said Clayton DeKorne, editor in chief of the JLC Group, which publishes Remodeling. “But think about the opposite situation: If you approach a house that clearly needs a paint job or a new roof, your mind immediately thinks of the amount of money and work it will take to repair this house. This is not where you want a buyer to walk through the door.

The old adage “You don’t get a second chance to make a first impression” applies here, and that’s why curb appeal is so important to a potential buyer. A home’s exterior has a strong psychological effect on people, DeKorne said, and sets buyers’ expectations before they even walk through the door. If they start with a good first impression, they’re in a better frame of mind and are also more willing to pay a higher price, he said.

The top-performing interior project on Remodeling in New England’s list this year, and fifth overall, is a minor mid-range kitchen remodel, which would include refacing cabinets; replace household appliances with new energy-efficient models; install new counters; update flooring, sink and faucet; and repaint. With an average cost of $27,495, this project generates a return of 110.8%.

“A minor kitchen remodel is the only project that has consistently been in the top 10,” DeKorne said. “Buyers want to get into a kitchen that they could live in for a year or two without having to spend more money renovating it.”

When Deborah Katz, a paralegal at a Westborough law firm, was preparing to sell a three-bedroom townhouse in Chestnut Hill that she and her brother had inherited from their parents in 2021, she knew the house needed to first “being refreshed” because her parents had not followed routine maintenance.

The siblings’ agent, Debby Belt, senior associate at Hammond Residential Real Estate in Chestnut Hill, suggested minor renovations in the kitchen and bathroom. The kitchen cabinets were refinished, knobs replaced, fixtures and appliances upgraded and new flooring installed, and the baths received new vanities and fixtures. Everything was painted. The result: The townhouse was listed in October 2021 for $999,000 and was signed in three days in a no-strings-attached deal after a bidding war. It sold in November for $1.08 million, $81,000 more than the asking price.

The sellers had invested $35,000 for the improvements.

“It was money well spent,” Katz said. “It was clean, looked great and someone could move right in. We did very well on the sale.”

Belt, the real estate agent, managed the renovation process on behalf of his clients. She said minor improvements will help sell most homes, except for those that are very old or “in terrible condition,” where it may not make sense to do work because the cost will be too high.

“Buyers don’t necessarily have imagination, so a house that looks like it needs a lot of work can be overwhelming,” she said. “But a house you can spend a little money on and get a big return is worth it.”

Of course, your results may vary. The return on investment for home improvement projects varies greatly depending on the type of home, the market, and even the neighborhood. In a competitive seller’s market, where inventory is low and buyers engage in bidding wars just to get a home under contract, it may not be necessary to do so. any of them improvements while enjoying maximum value, as buyers will be likely to overlook an issue just to secure a home.

This is where an experienced local real estate agent can add considerable value. A local agent understands the market, the competition and exactly what it will take to present your home in the best possible light to achieve maximum value when selling.

“It was very important for me and my brother to trust our real estate agent’s advice,” Katz said. “She told us that if we did everything she asked of us, we would succeed. And she was 100 percent right.

Robyn A. Friedman has been writing about real estate and the housing market for more than two decades. Am here @robynafriedman. Send your comments to (email protected).