The real estate market is hot right now due to an influx of first-time home buyers entering the market and driving up demand. However, we know that it won’t always stay this way. Many sellers are listing their homes as-is, selling quickly and still receiving more money than their homes are valued at. If you’re thinking of selling in a few years, now is the perfect time to invest in home updates that will recoup the greatest value. Here are some of the top renovations buyers look for when searching for their dream home, as well as some tips to help you navigate the complexities of these investment projects.
Modern Kitchens
Kitchens are where families gather to entertain and celebrate, it makes sense that home buyers would seek modern and up-to-date spaces to fit the needs of their lifestyle. Modern kitchens include sleek and updated appliances, ample storage space and large countertops or islands. Trends in kitchen design ebb and flow based on the year, but for your upgrade it’s best to keep it classic.
Avoid loud colors and stick to basic design principles. Keeping with classic designs will help buyers better visualize their lives in their new home. A great new luxury addition is an indoor-outdoor kitchen and dining space, or large interior kitchen doors that open up to an outdoor space. This improvement will make any room open up and feel bigger, plus it increases natural light within your kitchen, even when it’s too cold to utilize the outdoor function. Aim to create a warm and inviting space where people can gather and see themselves entertaining others. These design principles will appeal to several buyers and you’ll be sure to have offers on your home as soon as you list. It’s also best to resolve any issues that may come up in the home inspection process, especially in this area of the home, that way buyers have no reason to try to get a lower price for the house.
Energy Efficiency
Sustainability is a big draw for younger couples looking to become first-time homeowners; this group accounts for a majority of the potential buyers scouring the market right now. Some useful ways to make your space more energy-friendly include: opting for solar panels, updating to more efficient appliances and installing new window models to protect the home from changing weather.
Solar energy is a big bonus for new home buyers, as over time it will lead to a reduced monthly energy bill, especially at a time where the future of gas-based energy systems is uncertain. Additionally, there are some great tax benefits to installing solar panels now through 2024. The use of updated appliances and energy-efficient windows will set your home apart from others
when buyers are looking because they won’t need to be replaced right away compared to other available options. Some windows can last upwards of 20 years, which appeals greatly to buyers and shows that the home is ready to be lived in immediately.
Including these upgrades in your sale will only add to the attraction of your home. Some alternative ways to spruce up your space include adding a built-in composting system or rainwater collection, especially if you live in parts of the U.S. that experience more frequent droughts. These features might be more niche to some, but would be extremely attractive and make your home unique.
Curb Appeal
Another home renovation that attracts buyers is curb appeal, or the exterior presentation of your home. Popular home upgrades in this category include: new garage doors, front doors, windows, improved landscaping, manufactured stone veneer installation and replaced siding. This is your home’s “wow factor” and is the first impression it’ll make on potential buyers. Consider taking a drive throughout your surrounding neighborhood. See what design aspects compliment houses nearby or what newly built homes have that yours might not. How does your house compare to the neighborhood and does it look dated? There are a lot of options when it comes to increasing your home’s curb appeal and not all of them need to be expensive, either. For example, rather than replacing all of the doors, consider painting them. Use this opportunity to take on some DIY projects like your landscaping. Remember, a little can go a long way in adding to the appeal of your home.
Outdoor Spaces
A huge draw for buyers lately has been outdoor spaces that are entertainment-ready. Whether that means an in-ground pool, a finished deck or simply a pristinely kept backyard, these have all been big draws for houses on the market. Due to the consequences of COVID-19, outdoor entertaining spaces have become more sought after than ever, especially within the home as these spaces have become the forefront of safe celebrations. Think spaces that can be used for day or night, with coverage for shade and plenty of lighting in the dark. For families or people with dogs, enclosed backyards are also ideal to prevent accidents and create more privacy.
Colorado is one of the few states that experience all four seasons, and you’ll want to make sure your backyard space is equipped to handle them. If you already have some of these amenities, think about completing some touch up projects such as adding a quick coat of paint or hiring a professional lawn care service while your home is being listed. These details will go a long way in impressing potential buyers by allowing them to envision their life in your home without distractions. The most sought after houses will have a pool in the backyard to manage those hot summer months. Pools are projects that take a few months to install, however, the market is
expected to continue to grow throughout the summer and into the fall. Some more luxury outdoor entertaining spaces include a built-in grill and countertop, or even a pizza oven. These can be great amenities to set your home apart from others in a buyer’s search.
Getting Started
Any one – or a combination – of these renovations will add value to your space and create more interest from buyers, allowing you to earn the most from your home when selling. Decide which area of the house needs an update, or consider what you’d be most discontent with if you were repurchasing your own home. Make sure you distinguish what you feel your home needs instead of prioritizing what you want, especially because your intention is to sell.
Financing these projects can be daunting and they’re certainly an investment. Consider using a rainy day fund if you have one saved up, or look into how to get a home equity loan, which is tax-deductible when used to fund home renovations. Having your finances in order ahead of time will help you be prepared for when you’re ready to list and sell your home. Make sure you have a budget in mind so you don’t go outside your price range, hurting your chances of making a return on your investment. No one wants to have to compromise or risk home renovations going poorly, however, with the supply chain issues the U.S. is facing, it’s best to be prepared and budget accordingly. Keep your budget simple, but allocate a portion of it towards an overflow fund. This way you have a financial cushion should you hit any roadblocks along the way. It might be beneficial to undergo one project at a time, instead of taking on all of your investment projects at once, especially if you have some time before you want to put your house on the market.
When your home is undergoing renovations, you should consult a professional contractor, unless you have the expertise to do it yourself. Avoiding mishaps by trying to do the project yourself will also save you money doing further repairs in the long run. Use trusted experts who come highly recommended, and hold interviews with contractors to help decide which team is the best fit for your timeline and budget. Finally, make sure you use a trusted realtor when listing to make sure you get the best offer available. Make sure they fully understand all the recent updates you have completed so they can best market your home.
Experts don’t expect the housing market to cool down for quite some time, so use this period wisely to make the most money off your home when it’s time to sell, while also enjoying your space until you bring it to the market.
