Turns out, a brand new bathroom may wow buyers, but may not get the most bang for a sellers’ buck.
HomeLight released a study on the best and worst return on investments for home renovation projects and the results may surprise both you and your clients. Kitchen and bathroom upgrades, two of the pricier renovations that top the lists of most popular renovations year after year, actually had people losing money. A kitchen upgrade, on average, cost $23,140 in this study and only offered $23,122 in an increase of home value, an ROI of -0.08%, while a bathroom upgrade, cost $10,284 on average and sellers only recouped $10,180, an ROI of -1%.
Outside, ROIs can be even worse. A high-end landscape job costing $5,297 on average had an ROI of -9%, or $4,821.
So, what can sellers do to get the best value for their money before putting their home on the market? The old adage about first impressions being the most important isn’t wrong. A deep cleaning, estimated to cost $167, provided a whooping 935% ROI or a home value increase of $1,728, followed by a de-clutter, costing on average, $486 and offering an ROI of 432%, or a $2,584 increase in home value. For sellers looking to spend a little more money, both new wood floors (average cost of $4,338) and an exterior paint job (average cost of $2803) both add more than 50% ROI for home prices.
Outside, there are better ways to spend money than a high-end landscaping job. Lawn-care service, costing $268 on average, has an ROI of 352% or adds $943.36 in value, while fresh mulch costs $340 on average and adds 126% ROI.