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Raise Your Home's Value Instantly

Written by on Wednesday, 18 February 2015 10:00 am
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Your real estate professional is advising you to declutter, stage your home, plant new flowers, and make repairs and updates. You may be reluctant because of the costs, but according to HomeGain, your real estate agent is giving you sound investment advice that can actually make you more money when you sell your home.

Through its Home Sale Maximizer feature, HomeGain, an agent referral website, identified the top 10 home improvements under $1,500 that add the most to home sellers' bottom line, as recommended by real estate professionals across the nation.

The top 10 home improvements are listed by the greatest return on investment (ROI):

1. Cleaning and de-cluttering ($290 cost / $1,990 price increase / 586% ROI)

2. Lightening and brightening ($375 cost / $1,550 price increase / 313% ROI)

3. Home staging ($550 cost / $2,194 price increase / 299% ROI)

4. Landscaping ($540 cost / $1,932 price increase / 258% ROI)

5. Repairing electrical or plumbing ($535 cost / $1,505 price increase / 181% ROI)

6. Kitchen and bathroom ($1,265 cost/$3,435 price increase/172% ROI)

7. Replace or shampoo carpets ($647 cost/$1,730 price increase/169% ROI

8. Paint interior ($1,012 cost/$2,112 price increase/109% ROI)

9. Repair floors ($931 cost/$1,924 price increase/107% ROI)

10. Paint exterior ($1,467 cost/$2,222 price increase/51% ROI)

What's interesting is how consistently listing agents recommended the same home improvements. Nearly 100% of listing agents recommend cleaning and de-cluttering, while 97% recommended lightening and brightening and 80% recommended staging. These top three categories cost just a little over $1,000, yet netted sellers as much as $5,734 at closing.

As defined by HomeGain, the top three money-makers for sellers are:

Cleaning and decluttering: Remove personal items; wash and clean all areas inside and outside of house; freshen air; remove clutter from furniture, counters and all areas of the home; organize closets; polish woodwork and mirrors, etc.

Home staging: Add fresh flowers; remove personal items; reduce clutter; rearrange furniture; add new props or furniture to enhance rooms; play soft music; hang artwork on walls, and more.

Lightening and brightening: Open windows; clean windows and skylights inside and outside; replace old curtains; remove other obstacles from windows that block out light; repair lighting fixtures; make sure windows open easily, among other suggestions.

It takes money to make money, and that's never been truer than when you're selling your home.

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  About the author, Blanche Evans

8 comments

  • Comment Link Peter Dolci Jr Friday, 13 March 2015 8:33 am posted by Peter Dolci Jr

    Well though insightful there is an added cost of $ 7612 for the seller as supposedly projected. Carpet replacement depending on the areas, the cost can be much,much more. So your saying that the increase in price or lets actually say that the buyers do not have a complaint to making a lower offer of that much is going to be $20,594.
    But I see these costs of putting a home into shape can be much more being just one update if really, really needed can be ones entire budget.
    The post does not mention exactly what the improvements actually pretain to.
    I see curb appeal as being one of the greatest items with schrubbery and mulching. Next Painting inside and out that would be in most cases if the seller has no means of doing it at a cost of about $4000 inside and out. and that is limited to maybe three colors only. Carpet cleaning is the cheapest, but replacing carpeting and having it installed can be upwards of $2500. Lighting in the kitchen would be the next as long as the kitchen is within a few years old and it does not need updating.
    I can go on and on but for the most part as long as things are simple and nothing is in need of amjor renovation or repair like aging roofs, and other costly items the cost and the increase is pretty close.

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  • Comment Link Stephen Shaw Friday, 27 February 2015 12:57 pm posted by Stephen Shaw

    Hey Blanche,

    Very insightful post! and really like the 'greatest return on investment (ROI)' breakdown. It would probably make for a great infographic!

    Leading on from this I've just published several ways of increasing your house value through checking and installing energy efficiency measures.

    Let me know what you think!

    http://homeenergysaving.realtytimes.com/advicefromagents1/item/33187-top-energy-efficiency-tips-for-improving-house-value

    Stephen

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  • Comment Link My response Sunday, 22 February 2015 3:35 pm posted by My response

    F*ckin' awesome issues here. I'm very satisfied to look your article. Thanks so much and i am looking ahead to touch you. Will you kindly drop me a e-mail?

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  • Comment Link Maureen Murphy Spriggs Friday, 20 February 2015 12:49 pm posted by Maureen Murphy Spriggs

    So much is plain common sense! A buyer doesn't want to work their way around " stuff " as they tour. Making a home organized and super pristine is basic to an easier sale. Many sellers forget to get the windows washed and sparkling . Many buyers love to look in kitchen & bathrooms drawers and almost always kitchen cabinets , ovens and refrigerators. Be ready and your sale will be easier. Some of my sellers have a pre- listing inspection . These are helpful for serious surprises but buyers rely on their own inspections. Just some thoughts on making the sale of a home easier....

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  • Comment Link Annie Becker Thursday, 19 February 2015 11:42 am posted by Annie Becker

    I totally agree with the Top 3. Well written explanations of each too.

    But what is #6? Do what to the kitchen and bathroom?

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  • Comment Link Peggy Gost Thursday, 19 February 2015 10:10 am posted by Peggy Gost

    In some cases doing the items mentioned will get the home sold faster and closer to asking price. If the terms for financing are not in the best interest of the buyer some of these items will not help the seller.

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  • Comment Link rr-team Wednesday, 18 February 2015 9:36 pm posted by rr-team

    *agenda buster, I think how much a finished basement yields in return will vary depending on neighborhood/location. Some locations, it won't make much of a dent, but in the right neighborhood yes it can certainly be a breaking point between the sale of one home over another in the same area. Some neighborhoods the cost to return ratio doesn't add up but in others it can certainly make a difference. That is a decision to take into consideration of home value, max return vs investment of basement. If 10,000 is worth it then yes but if 10,000 won't gain you 5,000 more in listing price, then it would be a bad investment.

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  • Comment Link Agenda Buster Wednesday, 18 February 2015 8:34 pm posted by Agenda Buster

    Interesting these improvement don't address finishing a basement. A finished basement can double square footage of living area on many ranch style homes.

    Here in Colorado, people won't look at a home without a basement. Most not willing to settle for half a house.

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