(Originally posted on my old blog on August 27th, 2015)
One of the most asked questions we have had to answer so far when we help sell homes (though I am sure there will be plenty more!) includes “What can I do to be able to ask more for my home?” The general question being, in the current real estate market, how does one increase the property price, or home value? So of course, I do some research to avoid providing inaccurate information. Some things I would have not considered on my own, others made complete sense, and still others surprised me.
The #1 project that has a Return On Investment (ROI) of greater than 100% across the board according to a number of different sources (National, South Atlantic Region, and Orlando/Clermont Central Florida Area) is Entry Door Replacement with a Steel Door. This provides great “curb appeal” which is important when selling your home for both internet pictures, and Open Houses. It is reported to return 101% of your investment when you pay someone to replace your front door, and upwards to a whopping 500% if you Do It Yourself (DIY)! You may even be able to complete this project with no money down… more on this in just a few minutes!
None of the other projects would increase the real estate home value quiet as much and return more than one would spend across the board, however a number of projects still provided over 100% ROI in the Orlando/Clermont Central Florida Area (National and South Atlantic Region were just under 100% ROI).
- Replace Garage Door
- Replace Windows (see no money down projects later in the article)
- Stone Veneer Accent
- Pressure Washing Driveway (Can also paint and seal)
- Pressure Washing the Deck if you have one
- Add Outdoor Lighting (with Motion Sensors)
And finally, the following projects may not return 100% or more of your investment, however they will make selling your home easier (faster), still allows you to increase the real estate home value in any real estate market, and I know I personally would enjoy a couple of them before I put my home on the market!
- Add a Deck – but do not go cheap! Use real Wood rather than composite material
- Replace Vinyl Siding or Paint Exterior
- Outdoor Kitchens and/or Fire Pits (some reports show great ROI upwards to 200%, others debatable. Ask your REALTOR®)
- Replace the weeds in your lawn with sod
- If you have a porch, screen it in
There is an honorable mention I wanted to touch on as well. This is more for the families that know they want to sell their home in the future, but may have a few years before they feel ready. I would encourage families to look into Energy Saving Upgrades for no money down. I found this while doing some reading, and happened to really like the direction of the article.
Energy Saving Upgrades for No Money Down
Under the Florida Property Assessed Clean Energy (PACE) program, homeowners can pay for energy-efficient upgrades as part of their personal property tax bill, with decent interest rates (currently 6.5-7%) and no money down.
Different projects include:
- Solar Energy
- Windows (mentioned earlier!)
- Doors (mentioned earlier!)
- Air-conditioning Units
- Wind Mitigation improvements (New Roofs)
This program is not funded by the government and does not rely on tax money, but rather is funded and operated privately by agencies (example being the Orlando based Florida PACE Funding Agency). This program has not been adopted by all counties, so be sure to ask your REALTOR® to see if your county has adopted the program. What is really neat, is that since the bill is paid for via property taxes, so there is a record of the improvement in the county tax records, and the remaining payments can transfer with the sale of the home!
And the largest benefit – the savings you will see in your utility bills. I personally can attest to the power an old Air-Conditioning Unit uses over a newer, higher SEER unit. My August bill one year was $425. After replacing my Air-Conditioning unit, the next years August bill (with an additional child in the house mind you) was somewhere around $175. $250 in savings in a single month! Even if I only saved half of that every month of the year, that is $1,500 in savings over 1 year! Easily worth the investment, and I had no idea I could do it with no money down!!
If anyone would like more information, please do not hesitate to contact me. And if you would like some referrals for companies that can help complete some of these projects, I can provide those as well. Just let me know.
Source: “Best Money-Saving DIY Projects (and Tips for Doing Them Right),” Houselogic, June 2015
Source: “How Fast Internet Affects Home Prices,” The Wall Street Journal (June 30, 2015)
Source: “2015 Cost vs. Value,” www.costvsvalue.com (July, 2015)
