One of the most common concerns homeowners face when preparing to sell is how much they will have to spend on home upgrades. In the face of pressure to improve a home’s salability, they may be tempted to spend thousands of dollars updating every little thing, only to find those updated did not actually help them boost their listing price very much.
Of course, there are always little things you can do to spruce up the appearance of your home for relatively little money, and even if those tweaks do not increase the value, they increase your chances for a quicker sale. That said, there are some updates you can make that are “budget-friendly,” meaning they can boost your listing price by a higher amount than the amount you spent on them. Let’s take a look at seven of these home upgrades that either do not require a huge outlay of cash or offer cash returns that make the upgrades well worth the investment.
1. New Paint
Most people assume a new coat of paint simply “shines up” the place, but it can boost your home’s perceived value (and therefore your list price) by up to 3 percent, if you do it right. Repainting your exterior and your front door in current colors will greatly enhance first impressions, and painting the interior with neutral colors helps remove distractions so potential buyers can envision themselves in the space more easily.
2. Install a Hot Tub
It seems like a random thing to do, but hot tubs are surprisingly budget-friendly and, considering that outdoor space is a real selling point these days, anything you do to build out your backyard will increase your home’s value. Do not go overboard and install an in-ground pool or spa (unless, of course, you want to). Above-ground hot tubs start as low as $600, but, on average, you will pay between $3,000 and $8,000, depending on the size and model. When you consider you can raise your selling price by 1-4 percent, this could be a low-headache investment that pays off well.
3. Kitchen Upgrades
For adding actual value to the home and boosting your price, you almost cannot lose by making upgrades in the kitchen — and, unless your kitchen has not been updated in 20 years, you will not have to do a complete overhaul to see added value. Even simple touches like refinishing the cabinets, changing out the hardware or installing stainless appliances will add more dollars to your list price than the cost of the upgrades themselves.
4. Make It a “Smart Home”
In today’s high-tech world, Smart Home Technology is rapidly becoming the norm. An average home automation system can cost as little as $1,200 to install, and, according to Consumer Reports, it can add to your home’s value by anywhere from 3 to 5 percent.
5. Update the Landscape
Never underestimate the power of curb appeal. A landscape update generally starts at the cost of several hundred dollars up to a few thousand, but the dividends can boost your sale price by up to 5 percent, depending on how elaborate you’re willing to go. Words of caution: aim for low-maintenance upgrades. A lush landscape is eye candy to buyers, but it can also be time-consuming to maintain — and younger buyers tend to avoid high-maintenance like the plague.
6. Finish Out the Basement
This upgrade is perhaps the most expensive on our list — a full basement remodel averages around $19,000 by Home Advisor estimates — but the return on investment can be up to a 10 percent increase in home value. The added value is not the basement, per se — rather, anytime you increase your home’s usable square footage, you can ask more money for the home. However, basements are usually the easiest and most cost-effective spaces to upgrade. If the basement is unfinished, you will boost your asking price considerably just by adding walls and a floor; if it is finished but open, consider putting up some cheap walls to create an additional bedroom.
7. Go for Energy-Efficient Upgrades
If you are in a situation where you must make a major update or repair before listing your home — for example, replacing an old HVAC or installing new windows — spend a few extra dollars for the energy-efficient or “green” options. Environmentally conscious choices are popular right now and are likely only to become more so. Anytime you can boast savings on energy bills or a reduction of your carbon footprint, you will make your home more appealing and more valuable to the buyer.
These are just a few cost-effective upgrades you can do to boost your sale price comfortably. For more ideas on getting more money for your Atlanta home, give Atlanta Fine Homes Sotheby’s International Realty a call at 404.948.4812.