If you haven’t heard, the real estate market in the Dallas-Fort Worth region is a boon if you are seller. Sales prices have gone up annually an average of 10% or more since 2014. Prices are being driven by very little inventory and a lot of buyers looking for homes. Since the busy season started in Mid-March, buyers have been buying properties the first weekend the property has been on the market, many of the properties have had multiple offers on them. However, there is one catch. The homes that go fast are stellar in their presentation and have made all the nice upgrades to their homes to lure buyers in for showings. If you don’t make the right preparations, you should expect to get fewer showings.
Luckily, we have decided to write this post outlining five rehab projects that will bring you the most bang for your buck and get your house sold for more than than the others on the block. We are basing these five projects on the report laid out by the Remodeling site, Cost Versus Repair 2018 report. We scanned the list for Texas and picked out the ones that bring the most return for doing the repair in terms of getting top dollar for your home and the ones that will sell your more quickly. Be sure to look over the entire list to get an idea of what other repairs will be bring to the value of your home.
When you are done reading over our five rehab projects, be sure to contact us so we can chat about getting your house sold. If you need to get a head start on value, be sure to go here to get a quick value report on your home. We will touch base after the report is sent to you.
1. Bathroom Remodel – The old adage that bathrooms and kitchens sell homes is very true. I am often amazed at buyers who love everything about a house, but if a kitchen or bathroom is not up to speed, they quickly write it off. How much do you get back with a bathroom remodel. According to the Cost report, you are going to get back 73% in value (58% for luxury sellers) when you remodel your bathroom. The sales price of your home will definitely see an increase with a bathroom remodel. Based on today’s buyers, I would say you need to put in nice counter tops. Floors must look new and easy to maintain. Two sinks in the master bath is almost a requirement. Many buyers today only require a shower in the master bath as long as their is a tub in the guest bathroom. Accents need to match the rest of the bathroom decor and make sure the toilet is fresh and large. If your budget allows, you can even go for one of the smart toilets.
2. Front Door/Garage Door – First impressions are very important part of your sales presentation. As the buyer walks up the driveway or sidewalk to your home, they should be awed with its appearance. It is amazing how much a nice front door and garage door do for the curb appeal of a home. It is also a great way to bring some value to the sales price of your home. According to the cost report, a new door can bring over 125% to the value of your home. If you spend $500 on a front door, you can expect to add a $625 to the value of your home. Not bad! Here are some ideas on doors.
3. Kitchen Remodel – Kitchens are centerpieces to a house and you should be sure to pay plenty of attention to this area of your home if you want to sell your house quickly and at top dollar. With a kitchen remodel, the cost report indicates you can stand to add 57% of the cost to the sales price of your home. It might not be the best return when it comes to the actual sales price of your home, but you have to think about the perceived value of an upgraded kitchen. What will make buyers want to buy your home? What do buyers perceive need to be top notch for them to purchase your home? I bet you will get kitchen at the top of the list with every single buyer. Kitchens sell homes! Remodel magazine has a great article on 2018 kitchen trends. Be sure to read this before you make any decisions! What was hot even last year can easily no longer be a desired item for buyers.
4. Backyard Deck/Patio – Outdoor entertainment is another important component for most buyers in Texas (and many parts of the country). We love to sip our wines and ice teas out on our covered porch while the BBQ is grilling. I have had many buyers decide to select a house based on the outdoor features over anything else. A covered patio can bring back about 55% of the cost to the sales price of your home. Once again, it doesn’t compare with other remodel jobs, but the perceived value of a great backyard is enough for you to invest some of your remodel budget towards making the backyard a great place to entertain. Home Advisor is one of the best sites I have found to locate costs of remodel projects. For the covered patio, the high end is $6k. It can run up to the $10K level is you attach the patio to the foundation and have a shingles matching the rest of the roof.
5. Roof Replacement – The fifth rehab project is not really much a rehab project and is quite boring compared to the other items on this list. Roofs should always be considered in your rehab budget before selling your house. Why? Roofs have to be functional and in good enough repair to get an insurance policy on the home. If you have a bad or old roof, the buyer won’t be able to get the insurance policy and you don’t sell your house. In the cost report, roofs used to bring a lot more value back for the cost. This year, the report has it at just over 50% but the practicality of a solid roof far out weighs the value it will bring back in value.
Honorable Mention: Foundation repair…Fix the foundation. I tell people they can get their full value back on the cost of the foundation. Why? Because if the buyer had to repair the foundation themselves, they would require you to lower the sales price to account for it, usually dollar for dollar. You can be assured that your foundation repair will bring your home’s value up to compliment the rest of the market.