Renovations Buyers Like to See

Not all renovations are created equal.  Many homeowners view a renovation in two separate categories:  Renovate for you own enjoyment or renovate to increase the value of your home.  If you’re adding a luxurious new bathroom or a “man cave” for your own purposes, you’re probably not too concerned about your return when the house goes on the market. You’re spending the money for your pleasure and quality of life, not the return.

But many homeowners see their home as a financial investment and understand that it’s quite likely the day will come, even if it is in a few years, when they are ready to trade up or move to a new market. With this eye, every renovation is a calculated decision. In this situation, you want to select projects which are likely to provide a good return.

Any renovation which improves the value of your home in the eyes of buyers without breaking your renovation budget is an excellent choice. So how do you know which renovations buyers want to see?

According to a National Association of Home Builder’s 2019 report of 4,000 prospective buyers, the following eleven features were on buyers’ most wanted list:

• Separate laundry room (91% preference): This is a small-scale project, expected cost $1,000 to $5,000
• Energy Efficiencies on Appliances and Windows (89% preference): Energy-efficient windows can trim heating and cooling costs by 12%.  Appliances can save upwards of $45 per year on utilities.
• Patio (87% preference): A concrete patio can run roughly $975 per 120 square feet.
• Ceiling Fan (85% preference): This is a small expense, costing around $466 per fixture with light kit and remote control.
• Garage storage space (85% preference): You can expect to pay $2,025 – $2,363 for 380 square feet of garage storage.
• Exterior lighting (85% preference): Light fixtures run about $65 each.
• Walk-in kitchen pantry (83% preference): Each design varies in cost, but the report says walk-in pantries are preferred over the reach-in closet.
• Hardwood Floors (83% preference): Costs around $1,000 per 120 square feet for red oak flooring
• Walk-In Closet in Master Bedroom: Cost varies by design.  These are gaining popularity with first- and second-time homebuyers.
• Eat-in kitchen: Cost $1,000 to $10,000.  These are especially attractive to families with children.
• Dining Room: $1,000 – $6,000 to add ceiling fixtures or structural columns to open floor plan

You can read the estimated costs and reasoning behind these features in the original Kiplinger article:  11 Features That Will sell Your Home Faster

While doing my research, I came across the same NAHB 2013 report outlining important features to prospective buyers.  It was interesting to see the similarities between the list from six years ago.   This reinforced to me, that there are some renovation areas in the home that are continually important to home buyers.

1. Separate laundry room (93% preference)
2. Exterior lighting (90% preference)
3. Energy Star-qualified windows (89% preference)
4. Garage storage space (86% preference)
5. Eat-in kitchen (85% preference)
6. Walk-in kitchen pantry (85% preference)
7. Wireless home security system (50% preference)

I love renovations.  If you are you planning to sell your home after a renovation, give me a call.  I’d be happy to help you find a current value for your home, contact me today!