Ask Eli: Resale Value of Home Improvement Projects

This regularly scheduled, sponsored question and answer column was written by Eli Tucker, an Arlington real estate broker and a resident of Arlington. Please email him your questions for an answer in future columns. Video summaries of some articles can be found on YouTube in the Ask Eli, Live With Jean playlist. Enjoy!

Question: We are planning to launch our home this spring and seek advice on renovation projects to maximize our sales. What tips do you have for DIY projects with the best resale value?

Answer: The decisions you make about the money you spend or not on pre-selling home improvements can have a greater impact on your bottom line than most other decisions made during the selling process. These are also the decisions that you have the most control over, so take your time and plan carefully.

Most remodeling projects lose $$ $ on resale

Remodeling.com publishes an annual report showing the resale return on specific remodeling work, based on the region of the country, and the 2022 report was released earlier this month. Unfortunately, I can’t share the Washington area report due to copyright issues, but it’s worth visiting the link yourself (basic information required).

The results of their report show that most projects (e.g. bathroom / kitchen remodeling, new roof / window / siding), made individually, only pay off 50-80% of the cost. I’ve seen another Zillow study that shows similar predictions.

Of course, there are always exceptions to this tip. For example, if most of your home has been updated except for one room / bathroom, you’ll likely get a much better return by making small tweaks to the lagging space to keep it flush with the rest of the home.

Another example is improving something that is in an extremely bad condition, such as replacing old rotting single-glazed windows that are not working and have air leaks; you are likely to earn close to or above 100% return on that job, not the ~ 65% determined by Remodeling.com’s study.

So, when considering larger-scale DIY projects – renovating a kitchen, new roof, adding a porch – it’s rarely a good idea to do this work for the sole purpose of reselling, but only if you intend to draw personal value from it.

Should you ever spend to prepare an auction?

The study mentioned above refers to more expensive home renovation projects and does not cover the most common (and profitable) jobs that are done in preparing an auction, such as painting, electric washing, cleaning, landscaping and flooring.

Before most sales, every homeowner should make a list of possible repairs and improvements and get a quote for all valuable projects. If you are planning to hire a real estate broker, I highly recommend doing so with your agent who should have a good understanding of profitable and unprofitable projects for your real estate market / type and have a team of contractors available to support the work.

They should have sufficient knowledge of buyers’ preferences, your market segment, and project costs to come up with a set of recommendations for preparing an auction based on your home and budget, rather than a generalized, one-size-fits-all plan.

Once you have a complete list of potential improvements ready, you can tier them and analyze each tier for cost, project schedule, and expected resale value impact to determine which improvements make the most sense. These levels generally fall into three categories:

The cost of making improvements goes beyond the cost of labor and materials. Don’t forget to consider things like:

There is no doubt that a kitchen remodel will generate a higher selling price, but it is rarely advisable to invest money in improvements unless you pay back more than 100% of your investment. This is the challenge and strategy of planning your improvements. Understanding the profile of potential buyers and their value, as well as other factors such as market conditions and property type, is critical to making investments that earn a profit, not just a higher price.

If you want to talk about buying, selling, investing or renting, please contact me at [email protected].

If you would like an answer to a question in my weekly column or discuss buying, selling, renting or investing, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube in the Ask Eli, Live With Jean playlist.

Eli Tucker is a licensed Real Estate Broker in Virginia, Washington and Maryland at RLAH Real Estate, 4040 N Fairfax Dr # 10C Arlington VA 22203. (703) 390-9460

What renovations are worth doing before selling?

The best upgrades to sell your home quickly To see also : Sweating a joint? Space Balls? 11 weird conditions for home improvement All DIY people should know.

  • Add a fresh coat of paint to sell your home. …
  • Update your front door. …
  • Complete your bathroom remodel no matter how small. …
  • Organize your home to attract buyers. …
  • Make your home more energy efficient to add value. …
  • Update your floor throughout your home. …
  • Add a simple landscape.

Is it worth doing repairs before selling? There are many reasons to upgrade your home if you have the opportunity. Currently, many buyers want to be able to implement a turnkey house in a state of the art to introduce. A modernized home can also compete better with others on the market, especially new build. Perhaps most importantly, first impressions matter.

On the same subject :
Whether you’ve recently purchased a home and want to make some adjustments…

Should I sell my house now or wait until 2022?

Before 2022, many homeowners were able to lock mortgage rates below 3%, making sales in the near future much less attractive. To see also : How to cash in billions in tax credits and green home rebates. Unless other factors make the necessary move, enjoy the low interest you have blocked and continue to build equity in your home.

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Better weather, longer days and more schedule flexibility means the house improvement…

Do you have to fill holes in wall when selling house?

Should I fill in holes in the walls when moving? Again, unless the contract specifies that this must be done, the decision is mostly yours. This may interest you : Homeowners in these states take out the highest rate of home improvement loans. If your contract includes a ‘make damages’ clause, you can legally be expected to fill any gaps.

Do I have to fill in the nail holes when moving? Because whether you’re a tenant getting ready to move out (and hopefully you take a deposit with you) or a homeowner ready to put your home up for sale, filling nail holes is necessary – and not always is. super easy. task to undertake.

Do you have to fill holes in walls when you move?

7. Should holes in the walls be filled when moving? Again, unless the contract specifies that this must be done, the decision is mostly yours. If your contract includes a damages clause, you may be required by law to fill any gaps.

Should you fill holes in walls when selling a house?

1. Patch holes in walls. The sight of walls with holes – even small holes left by nails – is an immediate distraction for home buyers, says Sarah Fishburne, director of trends and design at The Home Depot. But you don’t have to repaint the whole house to keep it looking fresh again.

Do you have to patch holes when moving out?

Leaving nails sticking out of the walls is even worse, so the only good option for you will be to patch up all the nail holes before you move out. With enough time and confidence, you can properly cover the nail holes when exiting – using paste, sandpaper and paint.

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Disclosure Statement: We receive a commission from affiliate links to Forbes Advisor.…

Is it worth dressing a house for sale?

Research shows that home staging can increase the value of your home by up to 10%. The same report found that 85% of real estate agents say a house on the scene sells up to 3 times faster. While you can pay the professionals to direct your home, you can do it entirely yourself.

Is it better to furnish the house or sell it empty? Staging makes your home more attractive to potential buyers, which can help you sell faster and for more money. Ninety-five percent of stage houses sell in 11 days or less, which is 87% faster than non-stage homes. They also sell an average of 17% more, so you can recoup your staging costs and even more.

Should you set table when selling house?

In general, when you put your home up for sale, I advise you to avoid setting the table, instead focusing on the space rather than your belongings. This is, after all, the whole concept of staging for sale.

Should you stage your home to sell?

A recent study by the International Association of Home Staging Professionals shows that staging helps you sell homes three to 30 times faster than unstaged competition. Moreover, staging can help increase the selling price by up to 20% on average.

How do you set a table to sell your house?

Simple, light plates work best. Remember to add fabric napkins (plain or colored) and don’t forget votive candles and glasses! In order to arouse interest and drama, we suggest not making a fussy table, formally set. Free and comfortable work is best at the “dinner is sold” tables.

When staging a home does the furniture stay?

Home Stagers are constantly changing their inventory. No real estate broker or home buyer wants to see the entire list of homes that feature the same four items. So what happens to all the furniture cut from the stager’s arsenal? They are sold out… and often at a discount.

Does staging a house really make a difference?

A recent study by the International Association of Home Staging Professionals shows that staging helps you sell homes three to 30 times faster than unstaged competition. Moreover, staging can help increase the selling price by up to 20% on average.

Is it worth it to stage a house?

Home staging has become a must-do for many sellers, as 82% of buyers’ agents say home staging makes it easier for potential buyers to visualize the property as a future home. Historically, staged houses have also sold faster and for more money than non-staged houses.

Is staging an empty house worth it?

In fact, 82% of buyers’ agents say home staging makes it easier for their clients to see the property as a potential future home. Agents selling see similar benefits, with 23% saying staging also increases the bid amount by 1% to 5% compared to homes that are not staged.

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