Remodeling Projects to Avoid When Selling Your Home

It’s common for homeowners to feel compelled to remodel their homes before they sell. Renovating the spaces in your home can increase its value and help you compete with comparable listings in your area. However, some remodeling projects are more beneficial than others as you prepare to sell your home. Always talk to your agent to determine which projects are most appealing to buyers in your area.

Remodeling Projects to Avoid When Selling Your Home

When preparing to sell your home, you want to strike the right balance of upgrades. Making repairs and executing renovations will attract buyer interest, but you don’t want to dump so much cash into remodeling that you won’t be able to recoup those expenses when your home sells.

So, how do you know where to focus your efforts? Your agent is a vital resource in understanding your specific situation and will offer guidance on your remodeling efforts to sell your home for the best price. Here are a few projects sellers will want to keep off their to-do lists for the best return on investment.

Image Source: Getty Images – Image Credit: skynesher

Minor Cosmetic Upgrades

Whether you’ve made small cosmetic upgrades throughout your home typically isn’t a make-or-break proposition for most buyers. Let’s say you’re questioning whether to invest in a new toilet, vanity, and shower for your primary bathroom before selling. Unless these appliances are damaged and you can repair them without spending too much, it’s okay to sell as is.

Major Upgrades with Long Timelines

For any remodeling project, your agent’s analysis will help you determine its risk/reward potential. This dynamic is heightened with major remodeling projects and home upgrades, due to their higher costs. Four of the six lowest ROI remodeling projects found in the Remodeling 2022 Cost vs. Value Report (www.costvsvalue.com)¹ are upscale or major upgrades, all with roughly a 50% return on investment.

These projects come with hefty price tags and longer timelines than minor repairs and upgrades, which can complicate factors as you prepare to sell, especially if you have a deadline to get into your new home. They have the potential to temporarily displace you from the property, meaning you and your household may have to find somewhere else to stay until the project is complete.

The Bottom Line: To go through with a major home upgrade before you sell, its schedule must fit with your moving timeline. It should also align with buyer interest in your local market. If the project doesn’t meet these criteria, it should be avoided.

Building Code Violations

The rules dictating whether you can sell your home with building code violations vary region to region. It also depends on what the building code violation is and whether neglecting to update it is deemed a safety hazard. The buyer’s mortgage lender may also have stipulations saying that the loan may not be used to purchase a home with certain features that aren’t up to code, which could lead to them backing out of the deal.

If you’re selling an older home, you’re not obligated to update every feature that may be out of code to fit modern standards. These projects are often structural and require a significant investment. If the violation in question was built to code according to the regulations at the time, then a grandfather clause typically applies. However, you’ll need to disclose these features to the buyer.

Trendy Makeovers and Upgrades

Lastly, it’s best to avoid remodeling projects that target a specific trend in home design. Trends come and go. Timeless design is a hallmark of marketable homes because it appeals to the widest possible pool of buyers. Keep this in mind when staging your home as well. Creating an environment that’s universally appealing and depersonalized allows buyers to more easily imagine the home as their own.

Learn more about remodeling your home as you prepare to sell here:

Should I Remodel or Sell My Home As Is?

Featured Image Source: Getty Images – Image Credit: eclipse_images

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High ROI Remodeling Projects to Increase Home Value

This blog post contains excerpts of the “Remodeling 2022 Cost vs. Value Report” (costvsvalue.com).¹

As you prepare to sell your home, one of the major considerations you may face is whether to remodel, and if so, how to allocate your remodeling budget. Remodeling can help differentiate your home from competing listings in your area, but this competitive advantage comes at a price.

The following information provides insight on which remodeling projects deliver high ROI. To maximize the value of your remodel, talk to your agent about what buyers in your area are looking for and align your efforts accordingly.

High ROI Remodeling Projects to Increase Home Value

It’s no secret that buyers want to see a home with curb appeal and attractive interior spaces. But as a seller, you’ll only have so much budget to work with and you want to get the most return on your investment. As laid out below, here are the five highest ROI remodeling projects nationwide as found in the Remodeling 2022 Cost vs. Value Report (www.costvsvalue.com).¹

Remodeling Project	Cost of Remodeling Project (2022)	Resale Value of Remodeling Project (2022)	ROI
Garage Door Replacement	$4,041	$3,769	93.3%
Manufactured Stone Veneer	$11,066	$10,109	91.4%
Minor Kitchen Remodel (Midrange)	$28,279	$20,125	71.2%
Siding Replacement (Fiber – Cement)	$22,093	$15,090	68.3%
Window Replacement (Vinyl)	$20,482	$13,822	67.5%

This data shows that for a given remodeling project a higher expenditure doesn’t necessarily equate to higher ROI. It’s interesting to note that only one indoor project—the minor kitchen remodel—placed in the Cost vs. Value Report’s top five.

Four of the Cost vs. Value Report’s bottom six entries are upscale remodeling projects, all with roughly a 50% average return on investment. The conclusion to be drawn here is that remodels of this magnitude are expensive and should be considered carefully before you greenlight them. The upside to these projects, though, is that they have a much higher resale value than a simple fresh coat of paint or a change in décor. If you and your agent identify a logical upscale remodel with serious resale potential whose costs you can handle, it can help you get the best price for your home.

So, does this mean you should replace your garage door before selling your home bar none? Not necessarily. Again, your remodeling priority list should target the areas of your home that need attention while aligning with local buyer interest. Your agent can provide guidance on what competing listings in your area are offering and refer you to trusted remodeling contractors in your area.

Image Source: Getty Images – Image Credit: YinYang

Budget-Friendly ROI Home Projects

Though smaller scale home makeovers don’t have the value-adding power of larger remodeling projects, they can still make a difference when selling your home.

Instead of an upscale kitchen remodel, you can focus more on making minor improvements in several areas. For example, repainting or refinishing your cabinets, swapping out your drawer pulls and hardware, and installing new appliances can make your kitchen feel brand new with a smaller budget. When remodeling your bathroom, tasks like refinishing your tub, installing new lighting, and a new backsplash can make a strong impression on buyers.

For more information on budget-friendly home makeovers with ROI potential, check out our quick guides to upgrading your bathrooms, bedrooms, home office, and kitchen.

© 2022 Zonda Media, a Delaware Corporation. Complete data from the Remodeling 2022 Cost vs. Value Report can be downloaded free at costvsvalue.com.

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Hiring a Contractor for Your Remodel

Much has been said about the benefits of taking a DIY approach to home remodeling projects. It instills pride of ownership, builds the sweat equity you’ve put into your home, and can be more affordable than hiring a professional. The reality is, however, that sometimes, projects simply require a pro to be done right. Whether it’s the magnitude of the project, the caliber of skill required to successfully complete the job, or a combination of the two, certain projects are best executed in the hands of a professional. So, what do you need to keep in mind when hiring a contractor? Here are some quick tips:

Preparing to Hire a Contractor

Have your plans ready when you begin meeting with contractors. This will show them that you are prepared and fully invested in the project. Conduct phone interviews and meet in-person with potential candidates to give yourself the opportunity to gauge their professionalism and expertise. Here are some helpful questions to ask to get you started:

What prior experience do you have with this particular remodeling project?
Is your company licensed?
What is your timeline for starting and completing this job?
How long have you worked with your current subcontractors?
Could you provide a list of references that can speak to your quality of work?

Contractor Contracts and Implied Warranty

It is important that you understand the contract you’re agreeing to, and that you examine its finer points, such as the warranty terms. These terms will spell out what course of action will result should there be an issue with the contractor’s work. In the U.S., we have a legal concept known as “implied warranty” that protects those who hire out contractors. “Implied warranty” essentially means that it is understood that the contractor will perform quality work and that the home will continue to be safe to live in as a result of the repairs. These implied warranties are known as “good workmanship” and “habitability” respectively.

A good contract will have a detailed description of the labor and materials required to perform the job, a project schedule, the names of suppliers and subcontractors the contractors plan to use, and the payment schedule you have agreed upon.

Image Source: Getty Images – Image Credit: shynesher

Setting a Payment Schedule

When it comes to the cost of labor and materials, you won’t have much room for negotiation. The payment schedule, however, is one area where you can negotiate. Before the work begins, agree on a payment structure with your contractor. Good contractors want to perform high-quality work, completed on-time, and the agreement you reach together can incentivize their work. For example, you can stipulate that a certain percentage of the total job cost is paid out when certain stages of the project are completed.

The Potential for Temporary Housing

For large-scale remodeling projects, contractors need space to work at a high standard. Accordingly, it may be best for everyone involved if you and your household move out of your home temporarily until the work is complete. A home during a remodel is a noisy and chaotic place to be. Dust is flying, saws are buzzing, sheetrock is crashing to the floor, walls are being knocked out, and hammers are hammering. Trying to coexist with the remodel may be more trouble than it’s worth, since your usage of your home will be severely limited for the time being. If you plan on hiring a contractor to perform a large-scale remodel, search for housing alternatives far in advance to ensure that you and your household will have a place to stay.

For more information on remodeling your home, read our guide to remodeling your bathroom:

A Guide to Remodeling Your Bathroom

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Buying with Remodeling in Mind

Everyone has their own definition of a dream home. For some, they know right when they see a home that it’s perfect as is. For others, it takes remodeling to achieve their vision. Whether you’re looking for something in need of a few upgrades or a total fixer-upper, buying with the intention of remodeling comes with added considerations.

Finding the Right Home to Remodel

When it comes to choosing the right home to remodel, you’ll want to look for a property that not only aligns with your renovation plans but has significant ROI potential. How much value a home stands to gain depends on a variety of factors, like the cost of the project and your local market conditions. Knowing this information will help paint a picture of a home’s potential ROI. By conducting detailed Comparable Market Analyses (CMAs), your Windermere agent can provide helpful info on how similar homes in the neighborhood have performed on the market. Though these factors don’t provide a concrete valuation, they will help you understand how much your home could be worth.

Choose the Right Remodeling Projects

The right remodeling projects are the ones that align with your plans for living in the home. If you’re looking for an investment property, you’ll be targeting renovation projects that appeal to buyers, like a kitchen remodel, attic conversions, garage door replacement, and exterior projects that boost the home’s curb appeal. However, if you’re planning on putting down roots and staying for an extended period of time, you’ll want to focus on projects that maximize your enjoyment of the space. In either case, any structural issues require immediate attention and should be at the top of your list.

Know Your Remodeling Budget

Your remodeling budget will help you determine the scope of renovations you’re able to afford, and ultimately, which home is right for you. Knowing this information will help your agent identify which homes fall within your range. It will also guide your conversations with your lender when structuring your loan. For more information on home renovation loans, talk to your Windermere agent.

Break Down Your Remodeling Costs

Although remodel cost estimates aren’t always final, they give you an idea of what you can expect to spend. No renovation comes without hurdles and complications, so leave some wiggle room in your budget for unforeseen costs. This will allow you to expect the unexpected and stay within your budget. A cost breakdown will also help to identify areas where you can save money by doing-it-yourself. Painting projects, landscaping, and small-scale demolition are common DIY projects that can add up to significant savings.

Find the Right Contractor

For the remodeling projects that require professional expertise, finding the right contractor is another pivotal step in making your dream home a reality. Start by reaching out to your circle of friends and family for referrals. If someone you know and trust had a positive experience with a contractor, that’s a great starting point. Continue your search by gathering information for multiple contractors in your area and request project bids and timelines from each one. This will allow you to compare pricing and make a more informed decision.

Conduct Thorough Inspections Before Remodeling

Buying a home with the intention of remodeling means that a home inspection is likely to produce a longer list of items than a newly constructed home. Conducting a thorough home inspection is critical to formulating your plans for remodeling. Additionally, it will help identify which issues need immediate attention, enabling you to negotiate repairs and concessions, so long as the inspection is performed during your inspection contingency period.

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