Home Improvement ROI

June 13, 2023

According to a recent report from Curbio, homeowners are underestimating the importance of updating their houses before putting them on the market, despite what buyers actually desire. The Preparing to Sell: 2022 Home Improvement Report by Curbio aimed to uncover the misconceptions surrounding pre-listing home improvements through a survey of homeowners. Here are the key findings:

The majority of potential buyers (67%) only consider homes that have updated features and layouts.
For 68% of potential buyers, the biggest dealbreaker when purchasing a home is disrepair and wear and tear.
A staggering 77% of potential buyers refuse to consider purchasing a home that is not move-in ready.

Furthermore, the report identified the top five home improvement projects that yield the highest return on investment (ROI). These projects are as follows, along with their respective ROI percentages:

Kitchen refresh (painting cabinets, new appliances, new countertops, updating hardware): 377%
Refinishing hardwood floors: 348%
Basic listing prep (interior electrical updates, minor fixes): 297%
Roof replacement: 288%
Carpet replacement: 280%

Notably, a kitchen refresh offers the highest ROI at 377%. For example, if a homeowner invests $15,000 in updating their kitchen, they can anticipate selling their home for an additional $71,550, resulting in a profit of $56,550.

The report emphasizes that refreshing key areas of a home, such as the kitchen or bathroom, brings higher returns compared to full remodels. A bathroom refresh provides a 256% ROI, while a full bathroom remodel offers a 120% ROI.

It is worth noting that the housing market has considerably slowed down compared to the previous year. According to the National Association of Realtors (NAR), home sales in April of this year were 23% lower than the previous year, indicating the end of the buying frenzy. With more options available, the market has become increasingly competitive.

Furthermore, 77% of homeowners expressed a preference for agents who offer a pay-at-closing solution over those who do not.

The main takeaway from the report is that sellers often mistakenly believe that extensive renovations are necessary before listing their homes. However, simple updates in the kitchen or on the floors actually yield higher returns and require less effort. Olivia Mariani, the Chief Marketing Officer at Curbio, emphasized the importance of attracting potential buyers and making a home stand out in a competitive housing market. The report serves as a valuable resource for realtors and their clients, enabling them to make informed choices when preparing a home for sale.