Winter brings a lot of time spent indoors, and with it, a lot of looking around your home, wanting to make some changes. But before you upgrade your space, how will you know if it’s really worth it?
“The rule of thumb is to think about how personalized the upgrade you’re making is,” says Amanda Pendleton, Zillow’s home trends expert, citing a kitchen renovation with very specific features as an example. “These renovations typically yield some of the worst returns on investment—about 50 cents on the dollar.”
Meet the expert
- Amanda Pendleton is a home trends expert at Zillow, a real estate service for renters, buyers and sellers.
- Charlie Pugh is Head of Local Services at Matriarchy Build, a platform that offers consulting and matchmaking services to retailers.
While you’re always welcome to upgrade anywhere in your home, if you’re looking for resale value, there are a few places you should look first. We asked home pros for their best tips on where to spend your money (and which places you should definitely skip).
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Invest in an outdoor TV
Outdoor spaces have become increasingly popular over the past few years and the more opportunities available outside, the better for resale. Outdoor spaces that include a TV can sell for 3.1% more than similar homes without one, Pendleton says.
“Not only has outdoor space become increasingly valuable to home buyers, they’re looking for functional outdoor space,” says Pendleton. “A space that feels like an extension of their home where they can entertain friends or relax with family.”
Not a big TV fan? Other features such as an outdoor shower, kitchen, pizza oven or shed can also add value, she says.
Check your light bulbs
Sometimes the smallest upgrades can make the biggest difference, and that includes light bulbs.
If you’re on a tight budget, making sure the color temperature of each light bulb in your home fixtures is one of the first things you can do that makes a difference, says Charley Pugh, head of local services at Matriarchy Build.
If you have a little more budget, you can play more with the lighting, but don’t overspend.
“Upgrading bathroom and kitchen fixtures that look really dated can also go a long way, but they shouldn’t be too high-end or there will be no going back,” says Pugh.
Paint your walls in neutral shades
If we’ve said it once, we’ve said it a hundred times, but color can do wonders in any home.
“A fresh, neutral color makes a place feel new,” says Pugh.
While we’re known to favor a bold color palette, the more neutral the better if you’re concerned about resale value so you can appeal to the most buyers.
“Painting the walls in a neutral palette is almost always the quickest and easiest way to get your home ready for sale,” says Pugh.
Add a coffee bar
Have you dreamed of a coffee station in your kitchen? Now is the best time to add it. Zillow estimates that a coffee shop can add up to a 1.4% sales premium when it comes time to list your home.
If you want to spend a little more, wine fridges are out, beverage centers are in. Adding a beverage center or under-cabinet refrigerator for any type of beverage can increase the increase by 2.4%, Pendleton says.
Replace your hardware
Not every home upgrade needs to take weeks. Replacing outdated hardware is a small weekend project that can increase the value of your home and result in a cohesive look. But don’t just buy old hardware, says Pendleton.
“Replacing legacy hardware with matte black hardware could contribute a 2.9% sales premium,” says Pendleton.
2 places you should skip
Built-in cabinets, according to Pendleton, and really high-end lights, according to Pugh, are two things you should avoid in your next DIY for the best value. Pendleton recommends connecting with a local real estate agent for advice before committing to remodeling to increase value.
“They have extensive knowledge of the market to make sure you’re investing and highlighting the right features that will appeal to buyers in your neighborhood and maximize your sales price,” says Pendleton.
While you may not get the most bang for your buck on every home project, that’s no reason to stop yourself from adding a feature you know you’ll love.
“So many people do a ton of work to sell their homes, and then they’re shocked at how great the place looks,” says Pugh. “Don’t wait until you move to get that upgrade.”