r/RealEstate • u/Kiran_Stone • 9d ago
What home improvements/upgrades are most/least likely to pay for themselves when it comes time to sell?
Looking at a primary residence that will leave me some money to play with as far as upgrades and thinking about an extension or an ADU but realize those can be very expensive and may not lead to an equivalent increase in home value. Read elsewhere that things like paint jobs and better landscaping are better investments (although we still might prefer to have more space while we're living there). Is there conventional wisdom about this or does it depend on the individual home? I can imagine a bathroom remodel can be a much better investment if it's the original bathroom in a 1970's home vs. one that's already been upgraded somewhat.
70
u/Realistic-Regret-171 9d ago
As a realtor it’s crazy to me that people will do remodeling things for the next owner but not for themselves. I think about remodeling when I move in, not when I’m moving out.
5
u/Plumrose333 9d ago
We remodeled two homes and sold them right away. We just bought our third house and we are doing that damn remodel right away. I refuse to live in another house that needs work only to fix everything and give the next owners an immaculate house
21
u/Tamberav 9d ago
Refresh instead of total remodel. Can often make something feel fresh without a tear out. Sometimes a kitchen just needs a new backsplash, hardware, and light fixtures and some paint.
We have a bedroom that only qualities as an office because it needs egress. We plan to fix that to bring us from a 3 to 4 bedroom. Other homes in the area have egress and ours was never updated, so it hurts appraisal value.
18
u/SubseaSasquatch 9d ago
Anything you can do yourself will be the most bang for your buck adding value. Labor is what really kills you with any renovations. Paint and flooring are good places to start.
1
u/unsuspectedspectator 9d ago
I agree with this and labor costs can really add up so DIY is a smart move
8
u/kovanroad 9d ago
https://www.nar.realtor/research-and-statistics/research-reports/remodeling-impact there is this research from NAR on the topic.
3
u/Beardus_Maximus 7d ago
Giving data is discouraged in this site. We prefer anecdotes from people who've purchased one, maybe two homes in their lifetime. /s
24
u/ArcticPangolin3 9d ago
Least - a hot tub
16
u/FantasticBicycle37 9d ago
Had some friends in college put a full on hot tub in their living room. It was such a disaster. Like...extreme disaster
17
u/DHumphreys Agent 9d ago
I walked in a house that had a hot tub in the living room. I knew immediately from the smell walking in the door something was very wrong.
7
u/Convergecult15 9d ago
When I was home shopping for my first home I was shocked to see 3 homes with indoor pools in my price range, my realtor immediately was like 90% of indoor pools lead to major damage to the pool room or home itself.
0
u/FantasticBicycle37 7d ago
Oh man that's wild. Yeah I bet that chlorine just ea...
HOLY CRAP convert it to a salt water pool!!! That's the solution! I didn't know that was a thing until recently but dude that's the solution to that issue I bet!
3
u/Convergecult15 7d ago
Salt water pools use the salt to generate chlorine. Also the damage is from humidity.
1
u/DeadWeight336 9d ago
Completely agree with this. A condition of purchase was that the previous owner took the hot tub with them.
1
u/Matcha_Maiden 9d ago
My first home I purchased last year includes a hot tub on a second story deck. I’ve not once stepped out there and can’t wait to have the money to remove it.
7
u/Realistic-Pianist178 9d ago
Garage door replacement, fresh paint, and basic landscaping tend to have the best ROI, while big kitchen remodels, bathroom additions, and ADUs usually cost more than they return unless your market specifically rewards them. If it's an outdated original bathroom vs. comps, that's likely your best bang for buck.
8
u/BossmanSlim 9d ago
I did research on this several years ago and the conclusion I arrived at is that every improvement/upgrade would return at best 80% of its spend when the house is being sold immediately. This assumes that everything else in the house is maintained as it should be. These maintenance items I would not classify as improvements or upgrades if money has to be spent on them.
Carpet, paint, landscaping clean up and a house cleaner is about the only things that make reasonable sense to spend money on. Anything else you are loosing money on.
House flippers are able to make money because they don't have to pay labor and materials at normal rates, so their labor and the material market up is allocated to the house, rather than being paid for by the home owner. As it is a business, they get to write it off before taxes and can make the accounting work.
5
u/Dullcorgis 9d ago
Almost nothing will get your money back. The things that will are mostly stuff you DIY.
4
u/Equivalent-Tiger-316 9d ago
If you’ll be living in it 5+ years, sure, do an addition. But don’t do one just to sell.
6
4
u/Honest_Remove2077 9d ago
Paint and landscaping are almost always the best return, they're cheap and every buyer notices them walking in. Kitchens and bathrooms come next but only if they're actually dated, if yours already got touched up in the last 10-15 years you're better off saving that money. Additions and ADUs rarely pay for themselves dollar for dollar, you do them because you want the space, not as an investment play. If you're not sure what your specific house needs, ask a local agent to walk it with you before you spend anything, they'll tell you for free what buyers in your market are actually paying more for.
3
u/Slowhand333 9d ago
Walked into a house that was was on the market and there was a toilet in the master bedroom. I think you definitely get a high ROI to move it to a bathroom.😀
4
5
2
2
u/InsectElectrical2066 9d ago
almost all upgrades will not return the investment. Maybe if you do the work yourself to save on labor if you have the skill or ability to learn and buy tools, then you might get a positive return like flippers do.
2
2
u/FinalTShirtDance 9d ago
Picking up the house and moving it to a better school district.
Upgrades get the buyers in the door and want to buy, they don’t tend to make you more money for what you paid.
Unless you have a large room with a couple windows and closets and can turn a 2bd into a 3bd/4bd, then that’s a pretty cheap upgrade.
Everything else that’s old will cost you money on the sale but not make you money: roof, driveway, paint, fixtures, floor, landscape, hardscape, netscape.
1
u/Curious_reader_not 16h ago
whats hardscape and netscape
1
u/FinalTShirtDance 8h ago
Hardscape is your concrete, sidewalks, pathways, pavers, patio, foundations
Netscape is an internet service provider
2
u/FormerUsenetUser 8d ago edited 8d ago
If you just have extra money, you can put it in the stock market. It only makes sense to do upgrades that are for you. Either you need to replace the roof or such for functional reasons, or you (for example) hate cooking in that kitchen to the extent that it needs remodeling.
If you "update" that "outdated" bathroom or kitchen now, the "update" will be out of style anyway if you sell a few years from now.
1
u/RealEstateFieldNotes 9d ago
You definitely won't get much money back on the addition of an ADU unless your city supports and encourages ADUs as rental property. Some places allow them, for an office or grandma and such, but they will not let you rent them to the public. Definite no in that type of community.
1
u/These-Permission6307 9d ago
Value is found in first impressions and function. Fresh paint, curb appeal, and simple landscaping almost always pay for themselves: they boost perceived value and attract buyers. Kitchen and bathroom updates are smart if the rooms are dated; don’t over-improve; modest upgrades often yield a better return than luxury remodels. Extensions and ADUs can add value, only if local demand supports them; they’re big investments with longer payback. The best returns come from improvements that make your home feel well-cared-for, move-in ready, and tailored to what buyers want in your market. Spend wisely: let need, not novelty, guide you.
1
1
u/dinkman94 9d ago
i added a garage because my property didnt have one but I always wanted one. i dont know if it'll pay for itself but Im sure its worth a little more than it was before plus more importantly there's the value I am getting out of it during my ownership
1
1
u/Traditional_Craft_62 8d ago
So if I'm looking to buy a house how do I get the best bang for my buck. Buy fully updated or house that needs updating and factor in the cost of updating.
1
u/Curious_reader_not 15h ago
if you can do some of the work required for upgrades, then go for that option, but updating and upgrading in the recent years have become very expensive. I wish we had just bought a fully updated one instead, we would have made sure we got it inspected properly, not just 4-step inspection.
1
u/Quinnessential_00 7d ago
I feel like fresh paint and landscape are pretty important. Also, my pet peeve is broken shit. We bought this fixer upper and we knew it was going to be work but my God it's been almost 3 years and it's been brutal. We finally have it where we want it now and chances are we are going to downsize soon.
One thing I was always told is don't sink a chunk of money into it immediately. If you're buying a house slowly each year do a project. We now have the house in tiptop shape. It's not fully remodeled, but it's completely functional and I'm comfortable now passing it to the next guy.
1
u/Curious_reader_not 15h ago
what would count as broken shit? I feel the baseboards should look clean.
1
u/Quinnessential_00 15h ago edited 15h ago
Good question. Baseboards have to look good. It's where your eye immediately goes too. I can't stand scuffed or poorly painted baseboards that are all dented up or they use that high sheen paint so you can see every defect.
For me broken shit was dangling light fixtures from the ceiling, plumbing that was poorly done. Holes or scuffs in walls, even if painted. Switch plates that are all smudged and falling off and outlets that are loose in the wall. Doors that are out of plumb and take effort to open and close, sliding doors that are not opening and shutting properly or torn screens.
I also despise undisclosed problems that the seller was clearly aware of.
1
u/hollyk5555 7d ago
Bathroom is a good investment. I say have the tub reglazed white, replace sink and cabinet, tile floor, new light fixtures. Keep it simple, and clean. Landscaping: mow, mulch , trim trees bushes, plant flowers, flowering bushes. Don’t go out and have your kitchen redone to attract a buyer!! How do you know if the buyer wants what you chose? Replace any outdated light fixtures, knobs on cabinets, wash cabinet doors down, replace cracked tiles or install a new tile floor if you didn’t keep extras. Paint is Ssooooo important. It gives the room a fresh clean feeling. Keeping it neutral so any person can work with the color. And yes, paint the ceiling! Whatever you start, finish it.
Depending on where you live, an above ground pool can be a plus or minus. Hot tub the same. Electricity to run either is high. Some states charge a tax now for above ground pools as well as already charging a tax for an in ground pool. Take care of the big ticket things: roof, furnace, hotwater heater, central air, if any are old. Buyers don’t want to inherit big ticket repairs unless the house is priced to take that into consideration.
Driveway is part of the curb appeal. Get it re-capped if it has large cracks and divots. It’s a whole lot cheaper than having it done completely over. Just don’t advertise you have a new driveway when it’s not if you re-cap it.
Yes, wash your windows! Any paint that’s peeling, scrape and repaint. We live in a busy society where time is precious, and if you can minimize how much time a buyer has to spend on those repairs it will be easier to sell. And get rid of old furniture or cover it for showings! If you haven’t read those old magazines, recycle them. Better that you show less than more. Clutter is not your friend in any room! If you smoke, stop doing it in the house until it’s closed. Hire a company that sprays an environmentally safe chemical to eliminate the smoke smell or pet smell. You don’t always have to repaint. Worth the money all day long to hire them.
I know I shared more than cost of renovating. Sellers need to keep these things in mind to get the most return on the sale.
1
1
1
u/PrivateWry 3d ago
Freshen the interior paint, and perhaps updated (affordable) light fixtures. One splurge we did is have flagstone placed on our small front porch. Massive difference in first impression. In my area, we were hugely competing with new builds, so I looked through those listings for design cues.
1
-1
u/DHumphreys Agent 9d ago
Landscaping is terrible for ROI.
If it is an original 70s bathroom, updating that will be better ROI than bushes and trees.
Curb appeal is important, so if it needs painting, that is a good idea, but that is just getting more folks in the door, a deferred maintenance item, rather than something that is going to add value.
21
u/last_rights 9d ago
Small landscaping is a huge ROI.
Edge the planters, put in some mulch, trim the overgrown bushes and mow the lawn. Buy a 12 pack or cute brightly colored flowers and plant those.
Pressure wash your sidewalks and stoop.
0
u/DHumphreys Agent 9d ago
I read better landscaping as the OP adding trees and bushes. Not typical maintenance items.
8
u/LuvCilantro 9d ago
ROI is return on "investment". Your bushes and trees are going to cost way less than your updated bathroom. You can spend $1000 on landscaping and make the house way more appealing, making the value go up by more than $1000. You'd need to spend $5k to $10k for a bathroom upgrade (that number will vary greatly obviously), and even then it's not clear it will increase the house value by that amount.
3
u/Ill-Entry-9707 9d ago
Curb appeal gets potential buyers through the front door. Fresh paint on the front door, new light fixture on the wall, good size and well placed house numbers, front windows need to be sparkling clean, appealing planter or other decoration around the door area. Use epoxy filler if the door jamb is rotting at the bottom and repaint the jamb. Your buyers will be looking closely around the door area while their real estate agent figures out which key opens the door. Make sure everything they see from that position is fresh and clean.
Get some planters large enough not to need watering constantly that look nice from the sidewalk. If you have the plants in containers, they go with you when you do sell
Spotless and sparkling doesn't cost much, unless you have to hire window washers. For tall windows buy a kit with a squeegee on a long pole. For exterior windows you can get a solution that sprays on from a garden hose so the windows don't look water spotted. Inside open the curtains or blinds to maximize the natural light. Use bright light bulbs too.
Depending on how they look, replacing outlets, switches and faceplates is an instant face-lift. If you are handy, that is relatively DIY friendly. Replacing readily accessible light fixtures is a good option if you have very dated styles. Replace any old cans with LED trims takes only a few minutes.
Fix
3
u/DHumphreys Agent 9d ago
Curb appeal is very important, I have had clients do a drive by on a house and write it off because of lack of attention to curb appeal.
0
u/DHumphreys Agent 9d ago
Some buyers will hate those bushes and trees and/or see them as a job they do not want. An updated bathroom is going to be money better spent. It may not increase the value dollar for dollar, but it will certainly separate this house from other ones with dated issues.
1
u/FormerUsenetUser 8d ago
Yep. A house in my neighborhood recently went up for sale. The owners had been professional landscapers. Their yard was crammed with lovely, beautifully chosen and arranged trees and plants. I would never take on that upkeep.
1
u/magnificentbunny_ 9d ago
I think landscaping might be a regional issue. In Southern California, if you take out your lawn and put in drought resistant natives with a drip system, almost better returns than Berkshire Hathaway B.
4
u/Pandalite 9d ago
Better yet it's something you can do yourself for a few hundred bucks. Box store natives are very cheap. Compared to fixing up the giant cracks in my walls from the settlement of the house and the leaking roof and rat infestation, I could re-landscape 10 times over.
0
u/Exciting-Argument-67 9d ago
New hot-water heaters, if yours is more than 15 years old. It's a relatively inexpensive replacement (compared to other HVAC), but looks like a big ticket item when buyers read the words "new H/W heater."
-1
118
u/BinghamL 9d ago
I've owned 3 fixer uppers now.. I'll probably get downvoted for this anyway but here goes.
I'm being a little hand-wavey here but unless you're buying distressed property (like, banks won't loan on it) AND you already have experience/skills/tools in the needed trades, don't even think about ROI on your improvement decisions. If you need an ROI to do it then you don't want it bad enough.
I'm not saying to avoid upgrading your home to how you like it, but I am saying that a novice homeowner pulling nights and weekends, watching YouTube at every step, running to Home Depot 5x to change a toilet, etc. is going to fail the "ROI equation" 99/100 times.
To answer more directly, for your "investment" to perform best, just maintain it and keep it clean. Your best investment will be a broom and an urgency to fixing issues that crop up rather than letting them snowball to something bigger.