When it comes to selling a home, one thing is certain: homeowners always want to get top dollar. To boost their home's value, many embark on renovation projects hoping, but not knowing, that those upgrades will significantly increase their bottom line when it comes time to sell. Questions like, "Will I see my money back from that bathroom facelift?" or "Is installing quartz countertops in my kitchen worth it?" abound.
As we head into the slower fall real estate season, when many homeowners opt to stay put and contemplate selling next year, the list of potential projects might be top of mind. So what should you focus on? If you want to tackle just one project this year, what should it be?
Local real estate company Opendoor just launched a Home Improvement Value Calculator that eliminates the mystery by enabling homeowners to see how much certain upgrades can increase their overall home value.
Looking at Opendoor data for homes valued around $400,000 in Austin (close to the current median price), here are the five upgrades that typically provide the biggest boost, along with the average increase in value:
- Add a pool: $34,000 (8.5 percent increase)
- Add 150 square feet of interior living space: $22,550 (5.64 percent)
- Add a second or third bedroom: $21,800 (5.45 percent)
- Add a full bathroom: $18,800 (4.7 percent)
- Add hardwood flooring: $15,550 (3.89 percent)
Opendoor also looked at data from the past year to identify which existing home features could be costing homeowners thousands. Here are the top five offenders, along with the average reduction in value for each:
- Carpet as primary floor type: -$5,500
- Located on busy street: -$4,800
- Low-quality cabinetry: -$4,000
- Plastic tub or shower enclosure: -$2,500
- Black or white appliances (as opposed to stainless steel): -$2,000
As one of the largest acquirers of single-family homes throughout Austin, Opendoor is able to analyze individual home features and understand how they add to (or detract from) the overall value of a home. The company has been keeping Austin buyers and sellers in the loop on real local estate trends since late last year, and has served over 500 local customers.
For sellers not interested in undertaking stressful, pricey renovation projects to get their home "open-house ready," Opendoor is a dream come true. Homeowners can go to opendoor.com to begin the no-obligation process today and Opendoor will provide a competitive, all-cash offer within 24 hours, regardless of whether or not a home has been remodeled.
Opendoor's calculator is offered for educational purposes and is not a guarantee of return on investment. Individual results may vary.