Yahoo Finance Real Estate Agents Reveal the Best Money They’ve Ever Spent on Their Homes
As a homeowner, there are many ways to boost your property’s value and avoid unnecessary expenses. A minor home renovation here and there can help you get higher offers if ever you decide to sell. Keeping up with preventative maintenance can minimize issues and the need for more expensive repairs later on. And, of course, there’s the added joy of getting to see the fruits of your labors every day that you live on the property.
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But what’s the best money you can spend on your home?
Ultimately, it depends on your needs, goals and preferences. For some, spending $30,000 to $100,000 on home improvements is entirely worthwhile. For others, not so much.
If you’re having trouble narrowing down your options, you might want to know what the experts are doing. Here’s what several real estate agents said was the best money they’ve ever spent on their home and why.
Changes With the Next Owner in Mind
If you’re thinking about selling your home and want to increase its value, don’t make changes based on what you want. Make them with the next buyer in mind.
“I’ve renovated (and then sold) every home I’ve ever owned and every time I was doing a renovation I was designing with the potential buyer in mind. I was thinking about what features, colors, design elements, layout changes, etc. the buyers would want and I incorporated those into the home,” said Angelica Ferguson VonDrak, associate real estate broker at Sotheby’s International Realty.
“This could mean small things like beautiful light fixtures and cabinet hardware or a farm sink to big things like replacing a wall with floor-to-ceiling glass doors or completely gutting a bathroom,” she continued. “All of my choices were made intentionally to evoke a feeling from the person who would live there next, to create an emotional connection to the place. Aspirational moments throughout the home let a buyer feel like their dreams can come true there and that adds value.”
Before making any changes to your own home, VonDrak suggested speaking with your real estate agent.
“You want to make sure you’re investing your money in a project that is going to add value to your home,” she said.
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Improvements to the ‘Great Room’
Common areas — like the kitchen, dining room and living room — are among the most important parts of any home. They’re also the areas that are likely to attract — or deter — the most buyers.
“The best money I have ever spent on a home is enhancing the great room concept with multiple trash drawers, two dishwashers, and a bar with wine storage, an icemaker and more,” said Lindsey Harn, a top agent at Christie’s International Real Estate. “It is the heart of the home and gives people space to spread out when entertaining.”
Both small and big changes can add a lot of perceived value to the home as well, as Harn pointed out.
“Having great furniture [and] theming rooms really make it an inviting space,” she said. “Working with an interior designer can be great, as they can bring the entire aesthetic and home to life.”
Property Overhaul
For some realtors, it’s not about making changes to their own homes but helping others improve theirs to increase its sales value.
“My team and I have had great success in helping our clients do both minor and major renovations before selling to attract the most buyers and get top dollar,” said Cody Horvat, a real estate broker at Scott Group Real Estate.
“Recently (three months ago), I helped guide a client to do renovations prior to selling their property,” he continued. “We decided to sand and refinish the floors, painted the entire apartment with four different paints depending on the room and the vibe we were trying to create, replaced lighting fixtures, updated kitchen appliances, and added new hardware to the kitchen cabinets.”
By the end of the project, Horvat’s client had over 80 prospective buyers and 13 competitive offers. They sold the property for $40,000 over asking price.
A Kitchen Remodel
The kitchen is a major focal point in most homes, so it stands to reason that it’d be an area that’s worth spending a bit more money on.
“The best money I ever spent was on a comprehensive kitchen renovation. Modernizing the layout, upgrading to energy-efficient appliances, and adding high-quality countertops made the kitchen more functional and visually appealing,” said Mike Kotler, a licensed real estate agent and CEO of Move Ahead Homes. “This renovation significantly increased our home’s value and made it a central hub for family gatherings.”
According to Kotler, the kitchen remodel boosted his home’s market value by approximately 20%, making the time, money and effort invested into the project undeniably worth it.
Outdoor Living Space and Energy-Efficient Windows
Colten Claus, an associate broker with 8z Real Estate, said there were two key projects he’s glad to have spent money on: the outdoor living space and energy-efficient windows.
For the windows, here’s what he said:
“It improved our home’s insulation, reducing our energy bills and making the house more comfortable year-round…Energy-efficient windows are a strong selling point, as they appeal to eco-conscious buyers and those looking to save on utility costs.”
For his home’s outdoor living space, he put in a deck, patio, built-in grill, comfortable seating and a bit of landscaping. All of this has not only extended his family’s living space, but it also makes for a great space to entertain others and relax. Plus, it adds value to the home in case he ever chooses to sell.
Hard-Wired Ethernet Lines
Not all changes to a home have to be major or even immediately noticeable.
“It’s a little thing, but when I started working from home during the pandemic, I invested in hard-wired ethernet lines for my work computer, along with all of the other computers and devices in the house,” said Martin Orefice, a real estate agent and CEO of Rent to Own Atlanta.
“It’s much more reliable than Wi-Fi, and makes it much easier to share bandwidth when the whole family wants to be on a device,” he continued. “It’s also a feature that I’ve had success selling in other homes, especially for remote workers moving to low-cost-of-living areas.”
Estimating Costs on Home Improvement Projects
You could spend a few thousand dollars on your home or you could spend tens or hundreds of thousands. It all depends on the type and scale of the project, labor and material costs, and your goals.
According to Angi’s List, it costs anywhere from $19,485 to $86,991 to entirely renovate a 1,250- to 1,600-square-foot house. But you don’t need to do full-scale renovations to boost your home’s value or make it more livable. Even a few hundred dollars here and there could be enough. What matters most is that, at the end of the day, you’re happy with the time and money investment.
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