Although the return on investment for home improvements is not as significant as it once was, some home renovations are still wise investments and add value, especially in a changing or down market.
Thank you for reading this post, don't forget to subscribe!According to associate professor Sriram Villupuram, who led a study from the University of Texas at Arlington (UTA), the latest research shows that curb appeal “… can sell up to 7% of a home’s value”.
“The curb appeal premium is more pronounced during housing market weakness…” concluded the study.
Let’s take a look at some of the study’s findings that you can provide to your listing clients to help them get more money at the closing table.
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new siding/paint
When considering ways to increase curb appeal, you can’t go wrong by recommending your clients get new siding.
This will increase the value of the homeowner’s “… home by approximately $12,500, claims Andrew Dunn of CreditKarma.com, citing a recent real estate cost versus value report. “It also assumes that approximately 1,250 square feet of new siding was installed and represents a 67% return on investment,” he concluded.
If your listing lacks siding, ask your buyers to paint the exterior of the home. ROI estimates for fresh paint vary, according to Jenny Norris with the International Association of Home Staging Professionals, “…it’s the least expensive investment for the greatest return”.
Be the agent-in-the-know by offering tips on current trends. These include “… colors in the ‘greige’ family,” suggests Mekayla Oakes at Redfin.com. She claims that Kelly Moore’s ‘Gallery Grey,’ with ‘Desert Shadow’ as an accent color, will have buyers stepping out of their cars and out the front door.
add new window
Not only will new, energy-efficient windows offer your customer an 85% return on investment, but they may also be able to garner a nice tax credit to boot.
Suggest your customers visit Energy.gov to learn how to shop for energy-efficient windows.
enhance landscaping
The ROI of landscaping renovations has been the subject of many studies over the past decade. According to the experts at the Arbor Day Foundation, “Numerous studies have shown that trees increase property value by 3.5 to 27 percent.”
They state that “an analysis of 844 single-family homes sold in Athens, Georgia, showed that homes with an average of five trees (regardless of species) in the front yard cost 3.5 to 4.5 percent more than comparable homes.” Sold. Without trees.
Recommend that your salespeople visit ArborDay.org’s tree database to find trees that grow well in your area.
Then, suggest they pull out the weeds, green the lawn, add some color, and apply fresh mulch to the beds.
There are solutions to the current market uncertainty. Make sure your clients understand that curb appeal may compel buyers to either get out of the car or drive to their next showing to see the rest of the home.
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