These 4 Renovations Have the Biggest Perceived ROI
This upgrade is thought to boost your listing by $27,000.
Published Apr 12, 2022 2:02 PM
There are countless ways to calculate the value of your home: You can hire a licensed appraiser; enter your address in an online estimator tool; or, if you have a real-estate agent friend, ask them for a free comparative analysis. But no matter how you run the numbers, there’s still one unavoidable factor: The listing price is (largely) in the eye of the beholder. According to a recent survey done by Rocket Homes, there are certain features home buyers perceive add more value to a house than others. For example, if a property’s location is thought to be desirable (i.e., it’s in a good neighborhood), the worth in their eyes jumps 30 percent almost immediately. They also assume that more tangible perks, like an updated bathroom, can up a house’s price by $12,000.
In the past, we’ve learned that replacing a thermostat, keeping up with yard maintenance, and painting the front door are proven ways to increase your home’s listing price. But it could also be well worth it to make renovations that buyers regard as value boosting to enrich the sale, and sometimes bigger changes are better. Ahead, we’ve highlighted a few of Rocket Home’s recommendations and how the costs compare to the benefits.
Upgrade the Kitchen
According to the survey, 55 percent of potential buyers believe that a “good” kitchen could be the thing that sways them toward a down payment. Whether it’s fresh cabinets or fancy appliances, a gut renovation costs between $13,500 and $38,200, depending on the size and scope of the project. With a shiny new cooking space, your home jumps up a perceived whopping $27,200.
Knock Out a Wall
Open floor plans are still the number-one layout. Knocking down that wall separating the living room from the kitchen will run you anywhere between $300 and $10,000 according to HomeAdvisor, but the tweak could add an estimated $19,400 to the listing price.
Add a Garage
Not only does an enclosed garage protect your vehicle from unpredictable weather, it adds storage space and bonus square footage. A structure that can fit two cars costs somewhere in the range of $17,000 to $39,400, but fortunately the assumed value is at the higher end of that spectrum at $39,400.
Resurface the Roof
Replacing a roof seems intimidating, but new shingles can affect the overall quality (and longevity) of your house. And while it will cost in the ballpark of $5,600 to $11,830, that’s nothing compared to the $16,747 value estimation. Maybe it’s time to literally raise the roof—and your asking price.