The moment you close on a new house, you’re hit with an excited impatience to move in and transform it into a home. With no landlord dictating how you decorate your living space, you’re free to go crazy expressing your unique design style in every room. But should you?
It’s fine to let your creativity run wild with small projects that’ll be inexpensive to change when you’re ready to sell — like cool cabinet pulls, vivid paint colors in one or two rooms, or even unique light fixtures.
But for those big projects that’ll cost several grand to change out, you need to stick with styles and materials that have mass appeal. Just ask April Stephens, a Raleigh, North Carolina agent who earned the Best of HomeLight Award in 2018 for being in the Top 1% of agents in the area:
“Always put yourself in the mindset of a seller when you’re making home improvements, even if you’ve just bought your home. It’ll help you avoid any taste-specific projects that are very expensive to undo when you sell in the future.”
Tackle low ROI projects now vs. later
The real estate world measures the value a project adds to a home by the return on investment (ROI). This makes sense for homeowners renovating right before selling, because no one wants to pour major dollars into a house you won’t own in a few months.
But for new homeowners picking out your first home improvement projects, ROI isn’t the only factor that matters.
The truth is that some of the most desirable projects — like kitchen and bathroom remodels — don’t have the best ROI.
So, it’s smarter to do these low-ROI upgrades when you first buy your house while you’ve got years of homeownership ahead of you. That way you’ll get some mileage out of your upgrade investment as a trade-off for the lack of a return you’ll get in real world dollars.
When you balance long-term personal satisfaction with actual added value and ROI, these five upgrades come out on top.
1. Kitchen upgrade
Kitchen upgrades top the list with a joy score of 10 out of 10 according to the National Association of Realtors’ (NAR) 2019 Remodeling Impact Report. While the value recouped on a complete kitchen renovation is only around 59%, new owner customization comes in at number two on the top reasons for the upgrade.
Getting your money’s worth out of your kitchen remodel isn’t the only reason to complete the project before you even move in:
“It’s a major pain to remodel a kitchen once you’re living in the house, so I would go ahead and knock it out before you move in,” suggests Stephens.
“Going without a stove and dishwasher isn’t fun, especially when the project takes a lot longer than anticipated.”
Speaking of buying new appliances, you need to pay just as much attention to their style as you do to the look and finish of your kitchen’s cabinets and countertops.
According to HomeLight’s Top Agent Insights Q3 2019 Report, style is the most important factor to almost 58% of buyers, higher than quality or energy efficiency.
Steer clear of any appliance finish fads, like slate or black stainless steel. Almost 75% of buyers prefer traditional stainless steel over other finishes.
And while your overall ROI on your kitchen remodel may not be great, you could actually recoup up to almost $2,000 more than you spend on new appliances.
2. Master suite makeover
Rejuvenating your master suite slips into number two with a joy score of 8.4 in the NAR’s Remodeling Impact Report.
Unfortunately, you’ll only make back about 50% of what you spend when it comes time to sell. That’s why it’s best to tackle the remodel early, so you’ll still have years to enjoy your relaxing retreat.
The master suite remodel isn’t quite so inconvenient for homeowners who have a full guest bathroom and a spare bedroom to get them through the project — so there’s no need to postpone your move-in date.
In fact, you may want to let the weather dictate when you schedule your master suite remodel. According to our Q3 Agent Insights Report, you’ll save on both materials and labor if you wait until autumn or winter to makeover your master suite.
3. Install wood flooring
Consider this tale of two homes:
House No. 1 has engineered hardwood in the dining room and master bedroom, different tiles on both bathroom floors, vinyl in the kitchen, and dingy carpet in the living room and the smaller bedrooms.
House No. 2 has gorgeous mosaic tile floors in the kitchen and baths, and polished wood flooring throughout the rest of the house.
Which house would you pay more for?
Just as you would, your future buyers will pay more for a house that has consistent, quality wood flooring throughout than one with hodgepodge flooring. Wood floors are so popular with buyers that they have a joy score of 9.2.
Plus, you’ll actually make a 51% ROI when you install new wood floors.
“New homeowners should replace the flooring sooner rather than later, because once you get all of your furniture in, you’re much less likely to do it,” advises Stephens.
Remember those hodgepodge floors in house one? That happens when homeowners tackle new flooring room-by room, because it’s a pain to install new flooring throughout the house when you’re already moved in.
So they do one room now, then they replace the floor in the next room a few months later — only to discover the flooring they purchased for the first is no longer available. Or worse, they buy the same flooring, only to discover the new batch has a slightly different color or finish that doesn’t match the other.
The only way to avoid issues like those is to purchase flooring for the whole house at the same time. And if you’re going to spend money to buy the materials upfront, it just makes sense to install them while the home is still empty. That way, you won’t have to also pay the installers to shuffle your furniture and belongings from room to room.
4. Plant new landscaping
A whopping 94% of surveyed HomeLight agents say that great curb appeal has a major impact on your home’s value.
As an added bonus, the NAR’s 2018 Outdoor Features Remodeling Report found that an overall landscaping upgrade has a joy score of 9.6, and you’ll recoup up to 83% of the money you spend on landscaping improvements.
The trouble is, many homeowners only consider the impression made by the design and condition of the front yard when it’s time to sell. Landscaping improvements made right before listing have little time to grow.
By planting your landscaping when you first move in, you’re allowing plenty of time for your new lawn, shrubs and trees to mature and grow lush, which adds more value over time — provided you plant foliage that’ll flourish in your area.
Where you plant your greenery is just as important as the type of plants you pick:
“We see a lot of new homeowners making the mistake of planting trees and bushes too close to the house. After five years or so of growth, those trees and bushes are now eating your siding, or scratching the windows, or even damaging the foundations,” explains Stephens.
5. Replace the roof
Roof replacement is less about the look and more about the overall health of your new home. The good news is you will recoup about 94% of what you spend on a new roof.
We admit that a roof replacement isn’t the most exciting update, and you’re not likely to buy a house with a bad roof in the first place, so do new homeowners really need to think about reroofing first thing?
The real question you need to answer is this: How often do you have an extra $10,000 to $12,000 sitting in your bank account?
Because that’s what reroofing will cost you (depending on the style and materials used).
Unsure which upgrade will best boost your new home’s value? Ask your agent.
Unfortunately, making all 5 upgrades upfront is out of the question for most new homeowners. Figuring out which one will add the most value to your home is a guessing game that you can win if you ask an expert:
“Don’t be afraid to ask for your agent’s opinion on any expensive home improvement projects you’re considering, so you don’t wind up spending too much on fads that won’t last,” says Stephens.
Your new home is your most expensive possession. If you want to preserve and improve your home value, it’s a wise idea to start investing in renovations soon after closing on your home, and even before moving in.
Header Image Source: (Sidekix Media / Unsplash)