Struggling to get your house to sell?
In today’s tough real estate market, a smart home remodel might be just the edge you need. The rules of selling a home have changed. Buyers are more picky than ever. The game of attracting their attention has never been harder.
Here’s the deal…
Most home remodel projects are a big rip-off. You think you’re making an investment, but you’re really just flushing cash down the drain. But a few home remodeling projects can pay back almost double what you spend.
The secret is knowing which projects work and which don’t.
What’s in this article:
- How Home Remodeling Impacts Real Estate Success
- The Surprising Remodel Projects That Really Pay Off
- 4 Mistakes Homeowners Make With Home Remodel Projects
- The Smartest Home Remodeling Strategy for Getting Results
How Home Remodeling Impacts Real Estate Success
Let’s start with why home remodeling projects matter when you’re trying to sell a home…
Home remodel success in real estate isn’t all about what’s “pretty”. It’s about making smart investments in your property.
Here’s the secret…
First impressions matter when selling real estate. The moment a buyer sets eyes on your home, they’re mentally checking items on a list. Does the property look well maintained? Will I be inheriting someone else’s deferred maintenance headache? Is this home just how we want it to be?
Fortunately, recent data shows that certain home remodeling projects are now offering the highest return values on record according to the 2024 Cost vs. Value report. We’re talking home remodel returns in the 194% range on certain home projects. Incredible.
That’s why when real estate sellers in competitive markets are looking to make decisions about home remodel projects, homeowners choose Team Farrell to help. The guidance on the remodeling projects that really have a positive impact on the market value of a property can literally save a seller thousands of dollars in unnecessary renovation costs.
But what most people get wrong…
Is betting the bank on the remodeling projects that get all the attention. The high-dollar, show-stopping kitchen renovations and exotic bathroom upgrades. They feel great while you’re living in the home. But when you sell? They don’t provide the biggest bang for your buck.
The Projects That Really Pay Off
Let’s get into what the data is telling us actually works when it comes to smart home remodel projects that result in real estate success.
In a word? Curb appeal.
Say what?
Yep. According to Zonda’s latest Cost vs. Value data, garage door replacement tops the list at 194% ROI. And it doesn’t stop there. Nine out of the top ten home remodel projects with the highest returns are…wait for it…exterior projects. NOT kitchens. NOT bathrooms. EXTERIOR projects on the home.
Here are the home remodel project winners:
- Garage door replacement – This is the current king of all home remodel projects, at a nearly 200% return.
- Steel entry door replacement – Powerful curb appeal with a major first-impression impact. Improves security, too.
- Manufactured stone veneer – Adds architectural pizzazz at a relatively low cost.
- Wood deck addition – Outdoor living space that buyers crave.
- Fiber-cement siding – Mix of durability and low maintenance that also turns heads.
See the common thread here? These are all projects that impact what buyers see first. It’s that first second when a buyer drives up to the house. Or when they get out of the car and approach the front door.
One more thing…
The best part is, the average costs for most of these projects are a fraction of the costs of major interior renovations. A steel entry door replacement? We’re talking about an average cost of just $2,355. Compare that to a major kitchen remodel that can easily run $50,000 or more.
Where Most Homeowners Go Wrong With Home Remodel Projects
Ok, let’s get into some common mistakes people make with home remodel projects…
The biggest home remodel mistake of all? Kicking off a major upscale kitchen renovation or an exotic bathroom remodel just before putting your home on the market.
The numbers back this one up. Major upscale kitchen remodels and midrange bathroom remodels right now return only 38% to 45% of costs at resale. You’re losing more than half your money on these projects when it’s time to sell.
WHY does this happen?
Personal taste doesn’t always equal value. Yes, those custom features and high-end finishes might be absolutely perfect to you. They won’t necessarily match up to buyers’ wants, though. And buyers certainly won’t pay a premium for your personal design preferences.
Instead, these projects perform better:
- Minor kitchen updates – Replacing cabinet doors or drawer fronts, painting cabinets, new backsplash, and new fixtures recovers about 96% of costs.
- Midrange bathroom refresh – New fixtures, flooring, and paint recovers about 74% of costs.
- Fresh exterior paint – One of the most cost-effective curb appeal home remodel projects available.
Smaller, strategic home remodel projects beat big-budget overhauls when it comes to real estate value.
Another mistake? Not paying attention to what local buyers actually want in your specific market.
Real estate markets differ dramatically across the U.S. Pacific region offers the highest returns on most projects. Some other regions trail by miles. The details of your local market matter more than national remodeling averages.
Smart Strategies for Maximum Home Remodeling Impact
Ok, you’ve got an idea of what to do and what not to do. Now how do you approach a home remodel the smart way?
- Start outside. Step across the street and really look at your home through a buyer’s eyes. Do an honest assessment of what pops and what doesn’t. What looks outdated or rundown? These are your remodeling project targets, and they’re all outside.
- Clean it up. Sometimes, a thorough cleaning is all it takes to make a big difference. Decluttering, power washing, and simple landscaping changes can transform the appearance of your property. No renovation necessary.
- Function over flash. Buyers want to know a home will work for them. A new roof means no big repair bills on their horizon. Energy efficient windows mean lower utility costs. These functional improvements have real value.
- Don’t ignore the hidden heroes. Buyers are smart. They know the value of the “unsexy” upgrades. HVAC systems, insulation, electrical panels. They don’t photograph great. But a savvy buyer knows they’re important.
Timing is everything, too.
If you plan to sell within a year, limit yourself to cosmetic updates and critical repairs. Skip major renovations until after the sale.
Planning to stay put for 3-7 years? That’s the perfect time to tackle kitchen upgrades, flooring replacements, and major improvement projects. You’ll benefit from them before the sell.
Steer clear of these value killers:
- Swimming pools. More maintenance hassle than buyer appeal, in most cases.
- Over-personalized spaces. Bold color schemes or quirky features can narrow your market.
- Partial projects. Any renovation that looks like it was never completed 100% sends red flags to buyers.
Bringing it All Together
Selling a home is all about strategy, not just spending.
The data couldn’t be any more clear. Exterior home remodel projects win the ROI game. Curb appeal sells homes. Modest, well-considered updates almost always outperform big-budget overhauls.
Here’s a quick recap of what works in home remodel projects:
- Start with what buyers see first – the exterior
- Focus on remodeling projects with a proven track record
- Avoid overspending on personalized customizations before selling
- Match your home remodel projects to your local market
- Time your home remodel projects to fit your actual plans
A winning home remodel strategy that translates to real estate success isn’t just about spending money. It’s about spending wisely.
And the best place to start? Your garage door and front entrance. Clean it up, give the landscaping a little attention, and make that first impression a good one. These simple steps could quite literally double your home remodel investment.
Let that sink in. That’s the secret to home remodel success that really moves the needle.
