Selling a home is no simple task this year. With mortgage rates closing in on 7% following a tumultuous year of sky-high home prices, buyers are backing off and cooling the market at a rapid pace. Home prices are going down and the challenges of selling a home are going up.
To make selling your home easier, consider making a few key repairs first.
About 95% of home sellers made an average $14,163 in repairs to their properties between mid-July and mid-August, The Wall Street Journal reported. That’s nearly a 20 percentage point increase from last year.
However, not all home repairs hold the same value to the housing market. According to the National Association of Realtors, there are 11 major ways you can repair or upgrade your home, but only two of them will offer a major return on investment in the process.
| Remodeling project | Cost recovery |
|---|---|
| Hardwood flooring refinish | 147% |
| New wood flooring | 118% |
| Insulation upgrade | 100% |
| Basement conversion to living area | 86% |
| Closet renovation | 83% |
| Attic conversion to living area | 75% |
| Complete kitchen renovation | 75% |
| Bathroom renovation | 71% |
| Kitchen renovation | 67% |
| Add new bathroom | 63% |
| Add new primary bedroom suite | 56% |
That being said, the association also noted that a vast majority of homeowners who participated in house renovations perceived an improvement to their quality of lives. While most of the renovations listed above will not provide a huge return on investment, they may improve your living experience.
“Most consumers are pleased with the overall result and 57 percent would tackle the project the same way, while 35 percent would make a few different choices such as finishes or materials,” the association’s report said. “After remodeling, 84 percent of owners have a greater desire to be in their home. Sixty-nine percent have increased enjoyment in their home. Fifty-seven percent feel happy, and 39 percent feel satisfied when they see their completed project, with a typical Joy Score of 9.6. Sixty-nine percent feel a major sense of accomplishment when they think of their completed project.”
Ultimately, homeowners looking to improve their house’s odds on the market should focus their renovation efforts on hardwood flooring refinishes and new wood flooring projects. Upgrading your insulation will likely not cost you any money in the long run, but will also likely not make you any profit.
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