With the ever increasing options in the real estate market, home selling has become as cumbersome a task as home buying. For sellers, simply putting up their property on the market is no longer an option; it has become necessary to ensure that your property stands out from competition. Renovating your property before putting it up for sale makes it more attractive to potential buyers, making it a long-trusted and efficient way to increase value as well as ensure a faster sale. In this article, we will discuss some of the most lucrative home renovations you can undertake before selling your home for a better and faster deal.
See also: Renovation vs remodelling: Which is the one for you?
Why renovate your home before selling?
If you are wondering whether renovating your home before putting it up for sale is a good idea or not, here are some reasons why you should consider it:
Increases market value
Renovations and updates significantly boost your home’s appraised value, thereby allowing you to list it at a higher price. If done strategically, updates can often yield a strong return on investment at closing.
Attracts more buyers
Homes that are visually appealing in online listings and open houses draw more potential buyers. A strong first impression created by a well-renovated home can go a long way in encouraging viewings.
Faster sale
By making your home more livable before selling it off, it becomes easier to convince buyers as they are more likely to make quick decisions on ready-to-move homes. Renovations go on to eliminate hesitation over repairs, thereby shortening time on the market.
Competitive edge
In a market as saturated as real estate, renovating your property can make it stand out against similar competitors. This edge over similar properties can drive more interest and potentially spark bidding wars.
Justifies your asking price
By explicitly showcasing the added value and quality of your property, renovations can validate a higher asking price. Homes that feel new and require less immediate work are highly sought-after by buyers and can potentially fetch larger sums of money.
Fewer buying objections
Making upgrades before sale can automatically address several common issues that might arise during inspections. This also reduces renegotiation risks and helps keep deals from falling through.
Boosts exterior aesthetics
Fresh paint, new landscaping, updated fixtures, and other similar external upgrades can enhance your home’s visual appeal. A visually pleasing exterior creates an impression on buyers before they even step inside.
Tax advantages
You might be eligible for deduction on capital gains tax upon sale on specific renovation costs. It is therefore recommended to discuss the financial benefits of the same with a tax advisor.
Better listing photos
More attractive photographs due to the updates increases the chances of your listing grabbing attention online. In a market undergoing rapid digitisation, this might serve as a benefit as good photos are key to drawing interest.
Appeals to modern tastes
When aligning with contemporary trends and designs, renovations can make your home more desirable since buyers often favour homes that reflect modern styles and features.
Best value-adding home renovations
Once you decide on renovating your home, the next question that arises is what to renovate and where to start. To help you make a better decision, here is a list of the most profitable home renovations you can make before sale.
#1 Kitchen remodel
Boost the overall appeal and functionality by updating cabinets, countertops and appliances. When it comes to kitchen remodeling, even minor upgrades can yield high returns, all the more reason for it to top the list!
Estimated cost: 2 – 8 lakh INR for modular kitchens
ROI: 67 – 75% approx.
#2 Bathroom upgrade
Clean and contemporary bathrooms are highly sought after. Think modern fixtures, fresh tiling, new vanities, or even adding an extra bathroom if possible to increase the value of your home.
Estimated cost: 2 – 5 lakh INR depending on materials used
ROI: 50 – 60% approx.
#3 Interior painting
Possibly the most common home upgrade, a fresh coat of neutral paint goes a long way in giving the home a clean, updated feel, while also appealing to a wider range of buyers; to say nothing of the cost-effective nature of the upgrade! If you are up for it, you can even pull it off the DIY way without the need of professionals.
Estimated cost: 16,000 – 40,000 INR for professional services
ROI: 50 – 60% approx.
#4 Floor replacement or refinishing
Clean, durable flooring is highly-valued by buyers. If your home has got hardwood floors, a refinish before putting it up for sale is recommended for enhanced visual appeal. Even something as simple as replacing a worn carpet can make the home feel newer.
Estimated cost: 800 – 300 INR per sqm., depending on the material
ROI: 50 – 60% approx.
#5 Lighting and fixture updates
Instantly modernise your space by upgrading outdated lighting and hardware like faucets and cabinet handles. In the case of electricals, this step can also improve energy efficiency.
Estimated cost: 5,000 – 25,000 INR for lighting; 4,000 – 12,000 INR for fixtures
ROI: 50 – 60% approx.
#6 Entrance and exterior enhancements
Boost first impressions with landscaping, exterior paint, a new front door and clean walkways. Exterior aesthetics are a great driving factor when it comes to faster and profitable sales.
Estimated cost: 50,000 – 3 lakh INR, depending on the scope
ROI: 70 – 80% approx.
#7 Energy-efficient improvements
With eco-consciousness on the rise, installing energy-efficient windows, insulation and smart appliances might be an appealing prospect. Not only are these sustainable options, but can also lower future utility bills, making it a great selling point.
Estimated cost: Varies depending on specific material and installation
ROI: 60 – 70% approx.
#8 Basement finishing
Add square footage to usable living space available by turning an unfinished basement into a rec room or guest suite. This provides buyers with more functional space without addition.
Estimated cost: 8 – 15 lakh INR
ROI: 65 – 75% approx.
#9 Open floor plan adjustments
If possible with simple changes, modifying your space into an open concept layout can make it feel larger and more modern. You can do this by removing non-structural walls. This can work to your advantage as buyers prefer open, flowing living areas.
Estimated cost: Varies based on structural considerations
ROI: 60 – 70% approx.
#10 Roof and gutter repairs
Nothing screams good care and maintenance better than a newer roof and gutters being in a good condition. Apart from functional considerations, these essential repairs can also help prevent inspection issues that can be potentially deal-breaking.
Estimated cost: 50,000 – 2 lakh INR, depending on the extent of repair
ROI: 60 – 70% approx.
#11 Solar panel installation
With energy costs on the rise and sustainability becoming a priority, rooftop solar panels have gained popularity among homebuyers, especially in metros. This upgrade not only cuts down future electricity bills but also adds a “green” premium to your property.
Estimated cost: 1.9 – 2.1 lakh INR for a 3 kW system (before subsidies)
ROI: 60 – 70% approx.
#12 Smart security features
From video doorbells and CCTV cameras to smart locks and motion sensors, integrating modern security features adds both peace of mind and a tech-savvy edge. Buyers appreciate the convenience and safety, particularly in urban areas where gated communities and smart homes are trending.
Estimated cost: 10,000 – 50,000 INR depending on the setup
ROI: 50 – 70% approx.
#13 Dedicated parking space
In densely populated cities, having a proper parking facility is no longer a bonus, it’s a necessity. Whether you’re converting a front yard into a carport or creating a covered garage, adding secure parking significantly boosts your home’s appeal.
Estimated cost: 2 – 5 lakh INR
ROI: Up to 100% in metro areas
#14 Built-in storage solutions
Smart use of space is a winning feature, especially in apartments or compact homes. Installing built-in wardrobes, under-stair storage, or modular shelving helps keep the home organised and clutter-free, which appeals to today’s efficiency-driven buyers.
Estimated cost: 50,000 – 1.75 lakh INR depending on design and materials
ROI: 50 – 60% approx.
Housing.com POV
To make sure that the renovations indeed add value to your home without becoming a financial liability, it is essential to carefully decide the kind of renovation that is required. This small step goes a long way in ensuring the best price for your property without burning a hole in your pocket. The final decision should be based on the condition of the property and the budget allotted for renovation purposes.
FAQs
Which home renovation adds the highest resale value?
Kitchen renovations offer the highest ROI if done with modern yet budget-conscious upgrades as they balance functionality and visual appeal.
Should I renovate the whole house or just focus on key areas?
Focusing on high-impact areas like kitchen, bathrooms and exterior is more cost effective when it comes to renovating for resale.
Are small cosmetic upgrades worth it before selling?
Minor updates like fresh paint, new light fixtures and hardware replacements can significantly enhance appeal with minimal investment.
How much should I spend on renovations before selling?
A good thumb rule is to not spend more than 10% of your home’s current value on renovations and prioritising projects with ROI above 60%.
Is it better to renovate or sell the home as it is?
If your home is in poor condition, basic renovations can prevent lowball offers and help avoid prolonged time on the market.
Do energy-efficiency upgrades increase home value?
Features like double-glazed windows, LED lighting and solar panels attract modern buyers and improve long-term cost appeal.
Should I stage my renovated home before selling?
Staging can help buyers visualize the full potential of each space, complementing the renovations admirably.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |