When it comes to home improvements and interior design, I am regularly asked by clients if it's worth it for them to invest this much into the remodel or if they're better off just selling. So in an effort to improve myself for my customers and provide valuable insights for you into the best home upgrades, I interviewed a seasoned real estate agent in our area, Jim Anderson from Real Estate One in Trenton, MI. We had a great conversation about the top home improvements and what to consider when making decisions. Here are some of his expert recommendations, aimed at helping you maximize your return on investment and what ROI means to him.
Market Insights
Q: What are the most sought-after features in homes in our current market?
A: Currently, it is a sellers market so unless the house is in horrible state the need to update prior to listing is not necessary. Meaning, if cabinets are falling off the wall yes replace but with minimal expense. If not then just a deep clean, fresh coat of paint and decluttering will most likely be the recommendation but discuss with your realtor first. They'll be able to direct you but also consider that buyers frequently come in and tear out a lot of items to change it to their style so for example if you install new carpet thinking its necessary for the sale but they come in and tear it out anyway because they want hardwood floors well you could have saved a few thousand dollars and just got your carpet cleaned instead of replaced to put the house on the market.
Q: How do local market trends influence the value of home updates?
A: Local market trends play a crucial role. For instance, in areas with a high demand for family homes, features like additional bedrooms or play areas can significantly boost value.
Kitchen and Bathroom Upgrades
Q: Which kitchen updates tend to provide the highest return on investment?
A: Upgrading countertops to granite or quartz, installing modern energy efficient appliances can yield high returns. These updates make the kitchen more functional and visually appealing, which is a big selling point.
Q: Are there specific bathroom upgrades that significantly increase a home's value? A: If it's in an area that is primarily young families then having a tub in at least one of the bathrooms is best so they have a place to wash children. However if it's a client who's in their seventies and only has one full bathroom but plans to live the remainder of their days and wants a walk-in shower instead of a tub then don't worry about the ROI. If it allows them to stay in their home comfortably it's worth it.
Energy Efficiency
Q: How important are energy-efficient features to buyers?
A: Energy efficiency is increasingly important to buyers to help lower utility bills. And many companies, like DTE, offer rebates for installing new energy efficient items in older homes.
Q: Which energy-efficient upgrades are most likely to pay off?
A: Upgrading to energy-efficient appliances, and improving insulation are among the top upgrades. These investments can lead to savings on energy bills. Solar panels are gaining popularity for the savings but the aesthetic of them is not appealing.
Curb Appeal
Q: What exterior improvements offer the best return?
A: Simple updates like fresh paint on the front door and well-maintained landscaping can improve curb appeal. These changes create a strong first impression, which is crucial for attracting buyers.
Living Space
Q: Are open floor plans still in demand, or are buyers looking for more defined spaces?
A: Open floor plans are popular but I have noticed a growing appreciation for having some defined spaces.
Q: Does adding a home office or a flexible space add significant value?
A: Yes, a flex space has increased in popularity . A well-designed flex space (multipurpose room) can significantly enhance a home's appeal. For example if you have a room that can act as a toy room or office but also be a guest room for the occasional family visitor is a great addition.
Technology and Smart Home Features
Q: Which smart home features are most appealing?
A: Smart thermostats, being able to control it remotely is highly desirable.
Q: Are there any technology updates that are considered essential?
A: A strong, reliable internet connection is essential nowadays.
Material and Design Trends
Q: What materials and design styles are currently trending and likely to stay in demand?
A: It may be my age but warm tones are more appealing to my clients.
Budgeting and ROI
Q: What are the best updates to consider if on a limited budget?
A: Bring items up to code first that the inspector says needs to be addressed.
Q: Can you provide examples of cost-effective updates that offer a high return on investment?
A: You'll get the majority of your investment when updating the kitchen and bath, that's a well known fact. But aside from those if you add square footage then you're adding value to the house. So add an egress window in the basement if you're updating it so now all that basement square footage can be used as added space. And adding a four seasons type space but it must have heat to it, will add livable space to your home which adds value immediately.
Q: Do you feel that if they don't plan on moving that ROI should not be calculated?A: ROI is more than just a financial gain. It's also an emotional and safety gain to consider. If a remodel allows you to stay in the home if you've lived in for 20 years and avoid going into a nursing home then that is totally worth it.
Local Considerations
Q: Are there any specific updates that are particularly beneficial in our local climate or area?
A: In our area, investing in proper insulation and energy-efficient windows is crucial due to our changing seasons.
Q: How do neighborhood characteristics influence the types of updates that add value?
A: It's important to match the style and quality of updates to the neighborhood.
Personalization vs. Neutral Updates
Q: Should updates be neutral to appeal to a broader audience, or can personalized touches increase value?
A: If you're selling then keep it neutral. But if you just purchased and don't plan on moving for 20 years then make it your own and enjoy the home while you're there.
Q: How do you balance modern trends with timeless appeal?
A: Combining timeless elements like classic cabinetry and flooring with a few modern touches, such as trendy lighting or fixtures, can create a balanced look that appeals to a wide range of buyers.
Conclusion:
After speaking with Jim I was so happy to hear that he also valued a clients well being and comfort over numbers on a sheet. And with the knowledge he shared, making an informed decision just got easier! Investing in the right home updates can significantly increase your property's value and attractiveness to potential buyers when you're ready to move. And by focusing on key areas such as kitchens, bathrooms, energy efficiency, and adding livable square footage you now have a guide to make educated decisions that will pay off in the long run. Consult with a real estate professional when preparing to sell and speak with a designer if you're staying in your home but need the space to work better for you!
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