It has been estimated that nearly half (43%) of all sellers do not believe they they must update their home prior to listing it for sale. However, a recent report from Curbio titled “Preparing to Sell: 2022 Home Improvement Report” begs to differ. Of course, buyer expectations for home improvements change over time. For example, the increased desire for additional outdoor living space quickly became a highly desired feature throughout and after the pandemic. With this said, it is important to note that home improvements do not necessarily mean complete home renovations. We discuss some of the key highlights from the recent report below.
Pre-listing home improvements
Sellers often believe that home improvements mean taking on extensive renovation projects, however the highlights from the report below indicate otherwise:
Key Highlights
- 67% of potential buyers say they only consider homes with updated features and layouts
- 68% of potential buyers say the biggest dealbreaker to buying a home is disrepair and wear and tear
- 77% of potential buyers won’t consider purchasing a home that isn’t move-in ready
Home improvements with the highest ROI
- Kitchen update: Not surprisingly, updating the kitchen produces the highest ROI when selling your home. The estimated ROI = 377%. Some examples of these improvements include new appliances, countertops, cabinetry, and fresh paint.
- Refinishing/replacing flooring: The Curbio report specified refinishing hardwood flooring, however in markets such as South Florida, tile flooring it quite popular as well. The estimated ROI = 348%.
- Basic listing preparation: This broad category includes items such as minor repairs and interior electrical updates. The estimated ROI = 297%.
- Roof replacement: Although certainly not considered an inexpensive home improvement, replacing a roof can be quite significant when selling your home. In South Florida, obtaining insurance on an older roof has become extremely difficult. Therefore, a newer roof can be a huge selling feature. The estimated ROI = 288%.
- Carpet replacement: Nowadays, we tend to see less and less carpeting in the home. With this said, nothing can turn off potential buyers more than old and weathered carpeting. In particular, if the homeowner has pets, carpeting can retain various stains and odors. Fortunately, replacing carpeting is not a significant expense. The estimated ROI = 280%.
Summary
There is no doubt that the housing market has become more competitive for sellers. Although the inventory of homes for sale remains at low levels, the rapid rise in housing prices and mortgage rates has significantly reduced the number of home buyers in the market. With this said, it has become more important than ever for sellers to make their homes stand out from the rest when on the market. Therefore, implementing the right home improvements can not only result in an improved return on your investment, but it can also result in a quicker sale.
Are you thinking about selling your home in South Florida? We can help! Contact Natasha at Live South Florida Realty, Inc. today. Also, be sure to download the free Florida Home Search app for your smartphone or tablet.
