Home upgrades are not only done to make your home more comfortable, stylish, or functional, but they are also great for maximizing your ROI. Whether you are a homeowner or a flipper, choosing the right upgrades can help you make the most out of your investment.
However, it goes without saying that not all home upgrades rake in massive ROI. Some even contribute little to no profit, while there is a handful of others that can result in losses. That said, every homeowner or flipper must do due diligence and choose the upgrades that make sense financially, like these ones:
1. Kitchen cabinets
As one of the most vital parts of a house, the kitchen can make or break a home sale. With that in mind, home sellers can both increase the appeal of their home and maximize their ROI by upgrading the kitchen.
One of the best kitchen upgrades that you should consider is new kitchen cabinets. Kitchen cabinets generally take up the most space in the kitchen and are the first things that home buyers see when they walk into the room. Thus, upgrading them can increase the appeal of the entire kitchen even if nothing else is modified. If you think this upgrade is right for you, look for experienced cabinet makers who can make and install new kitchen cabinets in your home.
2. Outdoor storage
Sheds are relatively inexpensive to build at around $5,000 based on the national average, but you can build a shed for roughly $2,000 to $3,000, depending on the materials you use.
A shed may seem insignificant to some home buyers, but the more savvy ones will see it as a great asset. Outdoor storage can be used to store garden equipment, seasonal decor, sports gear, lawn care tools, and many other things that require protection from the elements. Moreover, having a place to store items outside of the house means that homeowners can save space in their garage and attic where they would store the items otherwise.
3. Finished basement
In many homes, the basement serves as a mere storage area or laundry room. But by finishing it, the basement can become an additional living space that can be used as a den, a game room, a bar, an extra bedroom, or even a home gym.
The catch is that it can cost around $20,000 to finish a basement, on average. However, a finished basement can add around $40,000 to $50,000 to the asking price which can easily bump the home into a higher price bracket.
4. Smart security system
One of the common things on a home buyer’s ‘wishlist’ is a modern security system. For some, it is even a necessity. So, if you invest in a smart security system for your home, you can increase your own security while living there and attract more qualified buyers when it’s time to sell.
The cost of a home security system varies depending on the brand and the level of security features that it offers. On average, the initial cost can range from $100 to $250, while the monthly cost can be around $10 to $35.
5. Exterior paint
The appearance of the exteriors of your home plays an integral part in the property’s curb appeal. After all, it’s the first thing that potential homebuyers see when they walk up to the property. Increase your curb appeal by applying a new layer of paint to the exteriors of your home, ideally in a neutral color that will appeal to most people.
If you don’t have the budget to repaint the entire house, you can ‘spot paint’ and cover up the flakes or chips in the existing paint to help the whole house look newer. Alternatively, you can pressure-wash the exteriors to remove the years’ worth of dirt that has settled onto the paint.
6. Garage door
A new garage door can do wonders for your curb appeal as well as increase your quality of life while you’re still living in the house. It can make buyers feel that the house is well taken care of and secure at the fact that they won’t have to replace the garage door anytime soon. Moreover, a new garage door can enhance the quality of your exterior photos on the listing, which can help you attract more buyers online.
Making a great profit off a house sale is easier said than done. But the great news is that you don’t need to play a guessing game to know what kind of upgrades will help you make the most profit. With these high-ROI upgrades, you not only increase your quality of life until it’s time to sell, but you can also maximize the money you get from the sale.