Top 3 Interior Renovations for Return on Investment (ROI)

Homeowners renovate and remodel for various reasons. According to a recent National Association of Realtors (NAR) report, when consumers remodel it is to upgrade worn-out surfaces, finishes, and materials (30 percent), to add features and improve livability (20 percent), and because it is time for a change (16 percent).

Whether you’re thinking of selling your house or just like the idea of a return on your investment (ROI), certain home improvements can not only make your house look better, but also increase its market value.

Kitchens and bathrooms are still the most popular rooms to renovate. However, the top three interior remodeling projects with the highest ROI are hardwood flooring refinishing, new wood flooring, and an insulation upgrade. Wood floors are universally loved and preferred by most homeowners. A floor that looks and feels good can improve your mood as well as your home’s selling price. Refinishing hardwood flooring has a 147% cost recovery, meaning homeowners are likely to recoup well more than their cost. For comparison, a kitchen upgrade has a 67% cost recovery.

With the average 30-year fixed-rate mortgage topping 7% for the first time in 20 years, home shoppers are facing higher monthly mortgage payments and tighter budgets leaving little room for renovations. A home in need of repairs may be out of reach for most buyers today. Sellers hoping to increase the likelihood of selling quickly may need to spend more on improvements than they would have a year ago.

Between mid-July and mid-August, about 95% of home sellers made updates or repairs (spending an average of $14,163) before listing their properties for sale, up from 71% of sellers 6-12 months ago, according to Realtor.com.

Making repairs or even minor cosmetic improvements could make the difference between getting your asking price or giving a discount. Consider the smaller things that are likely to turn buyers off and fix them fast. Mitigating strong odors is a relatively low-cost fix that helps sell a home. Enhancing curb appeal helps a home stand out to buyers and reduces seller concessions.

Looking for advice on which home renovations to tackle to help your home sell? Give us a call: 870-867-2215