Home Improvement Projects That Sell

By Lisa Scontras

If you think that money spent on upgrading your home will auto-magically translate to an extraordinarily higher sales price, you’ll likely be disappointed to find in many cases, that’s not the case.

“It’s a very common misconception,” says Stephanie Chan, a top broker and partner at Prudential Locations LLC. “The good news is by doing some simple research before choosing your upgrade projects, you can avoid some common yet easily avoidable pitfalls and maximize the return of your home improvement dollars.”

Mistakes include over-improving your home or selecting styles or colors that may not appeal to buyers. And, unless you’re a professional, Chan advises against doit-yourself projects, which may showcase expensive materials but are plagued by poor workmanship or design, or colors that are too loud. Inappropriate upgrades can be a waste of money, she says, and can end up being more of a detraction.

“I brought a client to a gorgeous apartment – the floor plan, views, everything was great, except for the bedroom.” Chan says. “The owner recently painted that room a shocking red and built in the most awkward shelving. It was such a turnoff that the clients decided not to move forward with buying the unit, despite all its upsides. Unless it is universally appealing, don’t count on the renovation to help sell your apartment.”

Remodeling projects that sell, according to Remodeling magazine’s 2010-11 Cost vs Value Report (www.costvs value.com), include updating an existing bathroom, adding a deck, and replacing the front door or garage door. Other cost effective projects are minor kitchen remodels, such as upgrading cabinets with new doors and drawers, installing new appliances and updating counter-tops and sink. New windows, adding a second story, or a new roof are also upgrades where the seller is generally able to recoup most of the cost when selling.

“In any home, the quality and appearance of the kitchen and bathroom are central,” Chan says. “They are both often-used rooms that wear down quickly, so special attention should be given to them to keep them constantly fresh and appealing.”

She adds that simple upgrades have the most impact.

“You can minimize the cost by refacing cabinet doors as opposed to purchasing new cabinets,” says Chan. “Don’t change the bathtub but maybe have the surface reglazed. Buy a new lighting fixture or change a rusty old faucet.”

Today’s market conditions means it’s more important than ever to set your house apart from the crowd. It makes sense that a tastefully upgraded home will generally sell faster and for more money than a competitor that doesn’t show as well. But it is equally true that shoddy workmanship and unconventional color schemes can send buyers running.

It’s all about making a home really sparkle.

“New appliances can easily and quickly give the house an edge,” Chan says. “If I take a buyer to five houses and one house has new carpet, a fresh coat of paint and new appliances, that goes a long way.”

Some of the projects where you can expect to recoup a smaller percentage of your initial investment include the addition of a master suite, adding a garage and adding a bathroom, according to the study. Likewise, spending a lot of money on the wrong improvements may make your home less attractive to potential buyers.

For the maximum return on your improvement investment, check with your Realtor to find what sells and what doesn’t.