In today’s housing market, homeowners constantly seek ways to boost their property’s value. For homeowners looking to sell, a Realtor.com report issued found which renovations pack the biggest punch when listing prices.
The analysis examined listing descriptions of single-family homes across the U.S., focusing on renovation-related key words. The results challenge conventional wisdom about home improvements.
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Landscaping tops the list of value-boosting renovations. Homes with “new landscape” commanded an 8.1% premium over similar properties, translating to a $34,794 increase for the median-priced home.
“If the front of your home isn’t inviting, buyers may not even take the time to explore inside,” Terry Haas, a real estate expert, said to Realtor.com. “Curb appeal is everything.”
Kitchen renovations, long considered the gold standard of home improvements, claimed the second spot. Listings mentioning a “renovated kitchen” saw a 7% boost or $29,891 for the median-priced home.
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Interestingly, the term “remodeled kitchen” had a smaller impact, increasing listings by just 4%.
Bathroom updates also proved valuable, with both “remodeled bathroom” and “new bath” boosting listing prices by about 3%. Haas said that kitchens and bathrooms are focal points for buyers upon entering a home.
The study suggests a clear trend – visible updates generally outperform functional renovations regarding price impact. “Buyers are willing to pay a premium for things they can see and experience during a tour,” Haas said.
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This explains why a new roof, despite its practical importance, only increased listing prices by 1.1% or $4,585 for the median-priced home.
Other high-performing renovations included new driveways (5.9% boost), new appliances (3.6% boost) and new decks (3.6% boost). Even seemingly minor updates like updated lighting showed a meaningful impact, increasing listing prices by 2.2%.
“The land surrounding a home is also usable space that buyers value and it’s often the first characteristic they see,” Realtor.com senior economist Ralph McLaughlin said in the report.
The research suggests a strategic approach for homeowners looking to maximize their property’s value. Prioritizing visible, high-impact renovations – particularly those that enhance curb appeal – could yield the best returns when it’s time to sell.
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These are the impacts of home renovations, according to the report:
| Key Word in Listing | Listing Boost | Premium on Median Priced Home |
| New Landscape | 8.1% | $34,794 |
| Renovated Kitchen | 7% | $29,891 |
| New Driveway | 5.9% | $25,366 |
| Remodeled Kitchen | 4.2% | $18,244 |
| New Appliances | 3.6% | $15,551 |
| New Deck | 3.6% | $15,358 |
| Remodeled Bathroom | 3% | $12,891 |
| New Bath | 3% | $12,836 |
| New HVAC | 2.3% | $9,897 |
| Updated Lighting | 2.2% | $9,589 |
| New Roof | 1.1% | $4,585 |
| New Floors | 0.6% | $2,749 |
| New Windows | 0.6% | $2,439 |
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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