In Spokane's bustling real estate market, homeowners and potential sellers are often caught in a whirlwind of decision-making when it comes to home renovations. The most common question I hear from sellers revolves around which remodeling projects enhance a home's resale value and which might not yield the expected return on investment (ROI).
You may be thinking, only big, costly renovations will get you greater returns, but that’s not necessarily true! Let me share a story from my experience that illustrates this point. A few years ago, I sold a home to a couple of clients who, due to unforeseen circumstances, needed to sell their home just two years later. Unfortunately, the care they had given their home was less than ideal, and when the time came to sell, I estimated its value at about $420,000, barely enough for them to break even.
I connected them to one of my vendors to invest in some cost-effective improvements, including interior and exterior painting, deep cleaning, landscaping, and minor repairs. This work, which cost them $20,000, was expertly handled by my recommended vendor. To their delight, these enhancements significantly improved the home's appeal, allowing them to sell it for $460,000. This sale not only covered their mortgages but also left them with a surplus, showcasing the dramatic difference that thoughtful, well-executed renovations can make.
Over my last seven years as a Realtor in the Spokane area, I’ve helped hundreds of people sell their homes and identify the best ways to maximize their homes' resale value through strategic renovations. Here’s how you can increase your home’s market value by making thoughtful improvements.
Interested in selling your home in 2024? Connect with me to get the conversation started!
Bigger Renovations Are Not Always Better: Think Functional!
Contrary to the popular belief that major remodels like kitchen and bathroom renovations are the golden tickets to boosting home value, smaller projects are often more fruitful. Refinishing hardwood floors, for instance, is a shining example of cost-effective upgrades, boasting an impressive 147% cost recovery, according to National Association of Realtors (NAR) statistics. Similarly, insulation upgrades and basement conversions into living spaces are notable for their 100% and 86% cost recovery rates, respectively.
In addition, essential home system improvements such as installing a new roof, furnace, or air conditioning unit, and updating kitchen appliances are pivotal in enhancing a home's appeal to potential buyers. Though seemingly mundane, these upgrades play a crucial role in improving the functional aspects of a home, making it a more enticing prospect in the Spokane real estate market.
Related: Your Guide to Selling a Home in Spokane, Washington
Renovations with the Best ROI for Spokane Homeowners
When considering renovations, I encourage homeowners to focus on projects that blend aesthetic appeal with functional improvement. New flooring options, such as replacing outdated carpets with wood floors or luxury vinyl plank (LVP), offer a fresh and modern look. Similarly, a new coat of interior and exterior paint, upgrading light fixtures, and adding a kitchen backsplash can significantly revitalize a home's appearance.
Curb appeal enhancements, including basic landscaping and the addition of bark, not only beautify the property but also contribute to its perceived value. These exterior improvements create a strong first impression, potentially increasing the property's appeal to a broader range of buyers.
Related: Frequently Asked Questions About the Spokane Real Estate Market
The Impact of Energy-Efficient Upgrades
Energy efficiency is a growing concern among homebuyers, with many prioritizing modern, high-quality windows and improved insulation. These upgrades are not only environmentally friendly but also offer a 100% cost recovery rate, providing a direct impact on resale value.
Furthermore, transitioning to natural gas, forced air heating systems can lead to significant savings on monthly expenses, making a property more attractive to energy-conscious buyers.
Related: Predictions for the Spokane Real Estate Market in 2024
Renovation Projects to Approach with Caution
While it may seem like all the HGTV shows encourage people to do big, splashy bathroom and kitchen remodels, in my experience, these major renovations may not always be the best decisions for homeowners planning to sell in the near future.
Instead, focusing on lower-cost improvements that offer a higher ROI, such as updating fixtures, flooring, and paint, can make a substantial impact without the hefty price tag. These upgrades enhance the overall appeal of the home, ensuring it is well-presented and cared for, which is often enough to secure a successful sale.
In addition, by making lower-cost improvements and forgoing big renovation projects, you’ll avoid the headache of having to get permits. Significant modifications to kitchens, bathrooms, decks and other structural elements require permits by law, as they assure potential buyers that all renovations meet local building standards. If you decide to go with a major remodel, keep the permitting process in mind during your home sale timeline.
Renovating Your Spokane, Washington Home
Investing in home renovations can be a strategic move to increase a property's market value in the Spokane area. However, I recommend homeowners prioritize projects that offer the best return on investment, focusing on both aesthetic enhancements and functional upgrades.
By emphasizing strategic renovations over extensive remodels and understanding the importance of energy efficiency and permits, homeowners can navigate the home improvement landscape with confidence, ensuring their property stands out in the busy real estate market.
Have questions about the home selling process or the Spokane real estate market? Reach out to me for more information!
