Home Improvements That Will Really Pay Off When You Sell

Doing home improvements before you sell produces one of life's great ironies: The imperfections you've lived with for years suddenly are worth fixing.

Most sellers spend money to make money, according to the 2016 Zillow Group Report on Consumer Housing Trends. More than 8 out of 10 sellers (83 percent) make improvements or renovations to get their homes ready to sell. The most common repairs include painting the interior or exterior (45 percent), renovating the bathroom (31 percent), adding curb appeal (27 percent) and landscaping (24 percent), and installing new carpeting or flooring (26 percent).

So what should you renovate to improve your chance of selling for the most money?

Know your market and neighborhood

As you consider what to fix or change, also consider your market. In a buyers' market, you'll likely need to do more work and improvements to help your home to stand out from the many others for sale. In a sellers' market, you still want to put your best foot forward but with fewer homes on the market, you face less competition.

Also consider your neighborhood. You don't want to stand out too much in either direction. If your home is in an upscale neighborhood but your home looks shabby, it's likely worth investing in paint, curb appeal and landscaping. But the converse is also true: Rethink spending a bundle if your neighborhood is primarily simple starter homes.

Pick your targets carefully

The Consumer Housing Trends report found that sellers who fetched above list price tackled expensive and messy renovation projects before selling, rather than passing them on to buyers. These sellers were about 50 percent more likely to modify the home's floor plan or finish off a basement than the average seller. Approximately 20 percent were more likely to renovate a kitchen or repair a roof, and 8 percent more likely to complete a bathroom upgrade.

Kitchens

A dated or worn kitchen could cost you in dollars and buyer interest, so it makes sense to invest in what many consider the heart of a home. Since total kitchen renovations are costly and are unlikely to have a very high return, consider more modest projects.

Some obvious kitchen to-dos: Replace that 20-year-old refrigerator that doesn't match the other appliances. Fix the grout around the sink. Install a new faucet. If your countertops are damaged and need to be replaced, go for granite. Despite what you’ve heard about it being out of fashion, it still brings in buyers and money. Freshen the room up with a new subway tile backsplash.

Bathrooms

According to 'Zillow Talk: Rewriting the Rules of Real Estate,' a mid-range bathroom remodel is one of the easiest ways to get the most return for your money. Mid-range means about $3,000 to replace the toilet, light fixtures and maybe add a new or double sink. A bathroom remodel of this type results in a $1.71 increase in home value for every $1.00 spent on the project. Some other quick fixes: Refinish your cabinets, change out mirrors, and upgrade hardware and lighting.

Curb appeal and landscaping

Want to make a great first impression on home shoppers? Start with cleaning up: Washing windows and walkways, trimming bushes and trees, moving the lawn. Landscaping in front and back can pay off in a quicker sale and higher price. Tidy up garden beds and add colorful pots of flowers to make your home look well-loved.

Is your front door looking weathered? Replace it, or at the very least paint it (see tips below). A new mailbox can pack a big visual punch and replacing your house numbers can freshen your home's look. Check here for more ideas.

Painting

Nothing makes your home feel fresh and well-cared-for than a fresh coat of paint, inside and out. And it's one of the best investments you can make as you prepare to sell. This is one job where hiring a pro might make sense, especially if you want to list soon. Painting is labor-intensive, involving lots of prep and ladders, and it can take weeks.

Outside, it's smart to keep your color scheme simple and neutral. You want your home to stand out from your neighbors, but not because it's purple. Reserve bright colors for your front door.

Inside, a neutral palette and simple finishes will give the new homeowner a fresh start. A nice white ceiling also makes rooms seem bigger. Here's some help for picking your paint colors.

Floors, nooks and crannies

Is your flooring worn or dated? This is a case when a significant upgrade could make sense. Hardwood floors can be refinished and will add value to any home while engineered hardwoods can be a cost-effective alternative. Removing old carpet is another simple way to freshen your home.

Other improvements can help your home appeal to buyers: Improving your attic space, refreshing your entrance, replacing your garage door and updating siding.

And a few inexpensive, last-minute touch-ups can make a difference. Just remember that some improvements are likely not worth the money (beware of swimming pools!), so if you're in doubt, ask your agent what's driving sales in your area.

And make sure to tell your agent about improvements that might not be obvious: New wiring or insulation, energy-efficient windows, new plumbing or sewer lines. These improvements may be worth including in your listing description and worth calling out to the bank's appraiser.