Thanks to the pandemic, our lives have changed in the last couple of years. How and where we work, shop, and live in our homes have been centers of significant change and re-evaluation. Whether you're considering selling your home or just looking to improve your quality of life, it's more important to know what upgrades have the best return on investment and adds value to your home.
For example, a dedicated home office and outdoor entertainment and living spaces are coveted by buyers in a house for sale. This blog post will look at trending home improvements that can add value to a house for sale in 2022.
We used surveys from real estate agents, expert data from the National Association of Home Builders (NAHB), and other industry experts to determine what home buyers are looking for in a house for sale in 2022.
Researchers estimate that total spending on remodeling projects in the U.S. could reach $430 billion by the second half of 2022. Growth is expected to taper in the third quarter due to rising costs of materials, labor, construction, and interest rates. A 7% annual inflation rate, the highest since 1982, is making everything cost more, including putting in new floors or refreshing a dated kitchen or bathroom.
According to a Remodeling magazine survey of real estate professionals, the average recoupment of 22 popular projects came in at about 60% nationally in 2021. That's down from 63.7% in 2020 and 66.1% in 2019. Some upgrades can add perceived and actual value to a house for sale if you're considering selling, making it stand out to buyers and offer a good return on your investment.
The way we live in our homes has changed since the pandemic. Homebuyers are looking for specific features when touring a house for sale.
Buyers always appreciate space. However, over the past year, they want even more. The NAHB report What Home Buyers Really Want – 2021 Edition found that buyers wanted a median of 2022 square feet, about 8% more than they currently have. Specifically, 46% were looking for three bedrooms, 37% wanted two bathrooms, and 42% preferred a two-car garage. A 2020 survey of real estate agents found that 44% of buyers said the need for more space was their number one motivator. Another 31% cited the desire for more private outdoor space as a top motivation.
Here are some upgrades that will make your home stand out to buyers.
These can be pricey upgrades but make your home more appealing to buyers. If you're not ready to sell, these upgrades can improve your quality of life while adding to your home's resale value when it comes time to sell!
The trend for remote work was growing before the pandemic. The need for home office space exploded as we were forced into working from home in the early days of the pandemic. Even as we slowly return to the office today, remote work is here to stay.
A 2021 survey by Home Light found that 60% of top agents cited a home office as a top priority. Today, buyers care about a home office more than whether a home is move-in ready. Some buyers are looking for multiple home offices.
Creating a new room or dedicating existing space for a home office is a good investment if your buyers telecommute. Home Light data from mid-2020 indicates that a home office adds over $10,000 in resale value. Today, that number might be even higher as the hybrid work model takes hold.
Options include converting a walk-in closet or building an accessory dwelling unit. The estimated value that an ADU adds has gone from $47,600 to $66,000 since pre-pandemic times.
If you have an unfinished basement or attic, you have potential livable space future buyers can enjoy. Whether as a home office, a home theater, an extra bedroom, or an in-law apartment. according to HomeAdvisor, a finished basement between 400 and 1500 square feet has a potential ROI of 75%
Adding heated square footage bumps your house value to another level. Today, an unfinished basement adds $15,000 to $20,000 in value. A finished basement can add $40,000 to $50,000 to your asking price.
Buyers today love an open concept floorplan. People need a dedicated space to work, but they still want to entertain and enjoy time with family and friends. NAHB's survey found that 85% of buyers want an open floorplan between the kitchen and dining room. 79% prefer an open arrangement between the kitchen and family room.
While an open layout is great for adding natural light, you should speak with a contractor before knocking down any walls!
Simple exterior upgrades to your home's curb appeal can add significant value to your home. These affordable upgrades can grab a buyer's attention before opening the door!
Curb appeal impresses buyers before they enter your home. Attractive landscaping implies you maintain your home. In fact, buyers will pay a 7% premium for a house with stunning curb appeal. The highest ROI for curb appeal is in the Northeast, where an investment of about $3600 for curb appeal upgrades can yield a $14,800 bump in resale value for a 309% ROI!
Basic lawn care like cutting the grass, fertilizing, and controlling weeds costs around $340 but offers a 539% ROI!
Is your garage door looking worse for wear? Is it a dated design compared to your neighbors? A new garage door is another inexpensive way to add value. According to Home Light, a new garage door costs around $1200 but can add an average of $2797 in resale value for a 133% ROI.
If you live in a city, or town where street parking is at a premium, consider adding a concrete parking pad. It costs around $1200 and is a considerable upgrade in the city. It's affordable and can add significant value and up your asking price!
We've embraced the physical and mental benefits of being outdoors in the past few years. Today, outdoor living ranks third on the list of homebuyers' priorities, behind only a home office and excellent schools. Here are a couple of outdoor upgrades that can add resale value.
A deck or patio is the centerpiece of an outdoor living space. It's a place to eat dinner, entertain, have a drink, or work outdoors on a beautiful day. A deck can add over $7000 in resale value. You can build a deck for around $4380 to $10,000, so you'll likely break even or see a positive ROI for this upgrade.
54% of agents surveyed by Home Light said that 54% of their buyers cited having a fire feature, like a fire pit or outdoor fireplace, as a top priority. It's a great place to spend time with family and friends. An outdoor fireplace adds an average of $5700 in value.
Once reserved for luxury homes, today, everybody wants an outdoor kitchen! Along with a built-in grill, outdoor kitchens can include cabinetry, a bar, sink, and standard kitchen appliances. They can even include an outdoor flatscreen. The value of outdoor kitchens has increased since the pandemic. Pre-pandemic, an outdoor kitchen added $6100. An outdoor kitchen adds about $9800 in value in today's market.
These are just a few upgrades and projects that can add significant value to a house for sale. If you're considering selling your home, simple improvements can add interest to buyers and drive up your asking price.
As you look around your home and consider which upgrades are worth the investment, first consider your quality of life. If you're planning on selling in the future large projects like adding square footage can enhance your current enjoyment of your home, but when you decide to sell, they can add resale value.
If you're planning on putting your house for sale, look at any upgrades from a potential buyer's perspective. Does your home lack the modern features and amenities that a remote professional needs to balance family, work, and relaxation? Maybe it's time to add a dedicated home office or outdoor kitchen. If you're not sure, speak with a local Realtor®. They can tell you what buyers in your area value most.