When preparing to sell your home, making the right renovations can significantly impact its resale value. However, not all upgrades are created equal—some can provide a strong return on investment (ROI), while others might actually hurt your chances of selling at a price. In this guide, we’ll explore a variety of renovations and what determines whether their ROI is low or high.

Renovations That Can Hurt Resale Value

1. Room Conversion or Expansion
   While adding an extra bedroom or repurposing a space might seem like a good idea, certain conversions can be a major turnoff for buyers. This renovation could limit your home’s marketability. While converting an office, flex room, or dining space into another bedroom (or vice versa) may suit the needs of certain families, it may not appeal to the majority of buyers. Keeping spaces versatile gives you access to a larger share of the housing market.
2. Adding a Wall to Divide Kitchen and Dining Areas
   Open-concept living is highly desirable in today’s real estate market. Adding a wall to separate the kitchen and dining area can make the home feel smaller and less inviting. Instead, consider enhancing the flow between these spaces with well-thought-out furniture placement.
3. Overpersonalized Upgrades: Bold Paint Colors, Wallpaper, and Trendy Décor
   While personalizing your home is important, going too bold with paint colors, wallpaper, or trendy decor can make it harder for potential buyers to envision themselves in the space. Sticking to neutral palettes and timeless decor ensures that your home appeals to a broader audience.

Some Renovations Cost More than They’re Worth

In addition to upgrades that can hurt resale value, there are many that cost more than they are worth. For example, high tech smart hubs or adding a pool might deter some buyers since smart hubs age quickly, and pools are costly to maintain. In addition to renovations that require upkeep, also avoid luxury renovations. High-end kitchen remodeling with state of the art appliances or extensive landscaping with large gardens are unlikely to recoup their full costs.

Instead, focus on cost-efficient renovations that universally increase value to all buyers. Strategic choices will have a high ROI so that you can sell your home with a price increase greater than the costs of the renovations.

Renovations with High ROI

1. Curb Appeal: Small Changes with Big Impact
   First impressions matter! Enhancing curb appeal can make a home more inviting and increase its perceived value. Simple upgrades like repainting the front door, refreshing exterior paint or siding, and some basic landscaping (such as trimming hedges, mowing the lawn, and adding fresh mulch to planters) can go a long way in boosting curb appeal.
2. Kitchen Upgrades: Small Updates Over Full Overhaul
   A full kitchen remodel can be costly, and many homeowners may not recoup their investment. Instead, focus on small but impactful upgrades, such as replacing cabinet hardware, updating backsplash tiles, refinishing cabinets, or upgrading light fixtures. These changes can modernize the space without breaking the bank.
3. Bathroom Regrouting and Caulking
   Bathrooms are key selling points in a home. A full remodel may not always be necessary, but freshening up grout and caulking can give the bathroom a clean look. These minor touch-ups are inexpensive yet significantly enhance the overall appearance of the space.

Conclusion

The renovations with the highest ROI tend to be those with a small cost and a big visual impact. Big renovations are risky because a large investment doesn’t guarantee that the changes will align with a buyer’s priorities or preferences. Keeping updates versatile and appealing to a wide range of buyers will ensure the best return on investment. A few low-cost renovations can help buyers envision themselves in your home and increase the value of their offers.

If you’re thinking about selling your home and starting fresh with a brand-new build, consider working with Visionary Homes. Our expertly designed homes offer the perfect balance of modern style, functionality, and comfort. Check out our communities to find the perfect build for you!