Planning to Sell Your Home Soon? Hold Off on Too Many Renovations
Certain Home Renovations Deliver ROI. Others, Not so Much.

Many homeowners who are tired of staring at their interiors through the pandemic are anxious to renovate and make some upgrades. However, it you plan to list your home for sale in the foreseeable future—say, within the next two years—you might want to resist renovation temptation. Many major home improvements are costly and you will never see the money back at time of sale.

Sure, it may help your home stand out from others in your local market, but the money you spend will not automatically come back to you in full when you close.

Remodeling magazine put out a 2021 Cost vs. Value Report that lists 22 popular projects and tracks their cost, resale value and ROI in terms of percentage recovered at resale. You can search by U.S. region (the report covers 150 different U.S. housing markets) for how prices stack up in your area and which projects will yield the best return or retain the most value at resale.

The top remodeling projects which did the best in terms of net cost vs. value (60% ROI or higher) are:
1 – Garage door replacement – highest at 94%
2 – Manufactured stone veneer
3 – Minor kitchen remodel – you will only recover 72% of the cost
4 – Siding replacement (fiber cement did slight better than vinyl)
5 – Window replacement (vinyl did slightly better than wood for this project)
6 – Deck addition (wood)
7 – Entry door replacement (steel)
8 – Deck addition (composite)
9 – Grand entrance (fiberglass)
10 – Asphalt shingle roof replacement
11 – Mid-range bathroom remodel

You can read the entire report here.

Repairs and renovations that make financial sense
Harvard’s Joint Center for Housing Studies estimates that Americans’ total spend on home remodeling projects will rise to $337 billion in the second half of 2021, and increase of $5 billion from third quarter 2020. This, despite the fact that the average amount recouped for home remodeling projects. However, if you want to catch buyers’ attention, there are quite a few projects worth investing in:

1 – Expanding square footage is at the top of that list. In 2020, 44% of real estate agents cited the “need for more space” as the top motivator for moving. Creating a more open floor plan is also an attention-getter.

2 – Curb appeal is so important—it’s the first impression prospective buyers get of your home. A nicely landscaped home says “well maintained” and the landscaping costs will bring sales results.

3 – Finishing the basement ups the asking price to high-income home buyers in the Northeast, Mid-Atlantic and Pacific Northwest according to the NAHB.

4 – Definitely in invest some money and time into touching up the paint (or repainting altogether) to make the house look fresh and well-cared-for. Light neutral colors are advised. Now is a great time to power wash the exterior and your patio or walkways.

5 – If you are tempted to redo the bathrooms or kitchen, make moderate upgrades that update the look without breaking the bank. For example, change out the cabinet and drawer fronts but keep the cabinet boxes in place. Replace fixtures or install a new floor if the current one is worn or outdated.

6 – If your home has hardwood floors, refinish them as needed or replace them with new wood flooring. The NAR’s 2019 Remodeling Impact Report states that refinishing hardwood floors recovers 100% of the cost at resale, while new wood flooring recoups 106% of costs.

7 – Handle big-ticket repair items such as replacing a roof or installing a new HVAC system. Also, buyers look for energy efficiency and savings on utility costs so consider putting in energy-efficient appliances (Energy Star), smart or programmable thermostats, energy-efficient windows, and low-flow toilets.

At CENTURY 21 Cedarcrest Realty, our real estate agents can guide you on what will make the most sense to invest in before you list your home for sale. We know what buyers are looking for in the North Jersey real estate markets in which we specialize, and can connect you with other professionals who can bring new life to your home to help it sell more quickly to the right buyers. Contact us at 973-228-1050 to discuss how we’ll market your home or for help finding the home of your dreams.

Winter Home Improvement Projects for North Jersey Homeowners

In northeast New Jersey where our offices are located, snow, ice and cold temperatures make outdoor renovation and home improvement projects unlikely in the winter. However, there are some projects you can do now to get your home ready for an early spring showing, or to beautify and update your home for your pleasure.

If your project requires a contractor or home improvement specialist, you may be able to take advantage of these professionals’ off season in terms of scheduling and rates., before they get into the spring hustle.

TIP: Remember to check your municipality regarding which kinds of projects require permits from the building department and build that into your timeline.

Paint and accessories

Painting your home’s interior is a great indoor project and instantly refreshes rooms (we recommend you choose light neutral tones if your home is going on the market). After you’re done painting, you might be inspired to change out carpeting or area rugs, add toss pillows in new colors, or hang new drapes in coordinating colors.

Bathroom or kitchen remodel

Whether you’re considering cosmetic changes such as new kitchen counters and cabinets, or a new bathroom vanity, or a more large-scale renovation, remodeling will bring new life to your home. A full kitchen renovation may not pay off in terms of sale price, since tastes and lifestyles differ, but appliance upgrades, freshening up cabinetry, and new lighting are great ways to update a kitchen.

A popular bathroom upgrade is to replace the traditional showerhead with a spa-style showerhead that offer a more luxurious shower experience. Handheld shower heads are also a great (and less expensive) shower upgrade. If you’re going for a full bathroom remodel, heated floors, overhead heat lamp, and heated towel bars are other luxuries to consider including.

Even low-cost updates, such as painting walls a new color or adding a colorful backsplash can perk up these spaces and add value to your home. If you’re prepping your home for sale, these changes will also give you new ideas for real estate staging.

Weatherproofing

There are many ways to make your home more energy efficient and comfortable, from adding insulation to walls or the attic to sealing up cracks and caulking around windows. Even your high-hat lighting cans can be an entry point for cold or hot air. Replacing old exterior doors with insulated models will also “tighten the envelope.” Installing smart thermostats also help control energy costs. A more expensive project with long-term benefits is to replace old windows with top-quality energy-efficient windows.

Organize the garage

Grab a jacket and get out there to organize your gardening, snow and hand tools. Hang wall units made specially for holding and hanging these items, and shelves above or in front of vehicles to stack boxes, cans and large objects. If you have a workbench, hang a peg board for hand tools and store large items underneath the table. Clean out what you no longer need (including old boxes of stuff that came with you from the last move).

Prune and nourish your trees

OK, this one’s outdoors . . . but late winter is a great time to trim trees and shrubs before the spring bloom starts. The bare limbs give you clear visibility and because the trees and shrubs are dormant, they are less likely to attract insects or disease. This is also a time to add fertilizer in preparation for spring. Take time now to plan out any landscaping updates as well.

Install a security system

From smart doorbells to connected alarms, these products will keep your family and belongings safer and are a great selling point to prospective buyers.

Finish the basement

This is a highly worthwhile project, providing extra (and insulated) workspace, storage, a playroom or entertainment area for your family-even a guest bedroom depending on the home’s structure. A finished basement also increases your home’s value. It’s like adding on a room without breaking ground.

At CENTURY 21 Cedarcrest Realty, our sales associates will review your home improvement plans or discuss timely projects that make good sense to handle right now. Contact us for questions about listing your North Jersey real estate.