Where to spend your RENOVATION BUDGET for the best RETURN ON YOUR INVESTMENT
Got a limited budget and want to know where to spend that renovation money? I’ll give you all of my thoughts from years of advising homeowners and sellers as to where you get the best bang for your buck.
Hello everyone, my name is Cameron Stephens and I’m a local real estate agent in Los Angeles and the owner of Stephens Real Estate.
Ok, so you want to renovate your house, and you want to know where to spend that money so you get the most back when you go to sell. Perfect. First I have to ask, how long are you planning on living in the house? That will determine a few factors, but I’ll talk about it a bit high level.
If you just bought the house or are planning on staying in it 7 years or more, disregard this video and do exactly what YOU want to do. You’ve lived in the house, you know whats wrong with it, what bugs you, what you really want to fix, and clearly you’re staying here longer term, so go ahead and just fix the things that bug you the most or that you will get the most use out of. The good thing is that this is a long enough time horizon that you’ll get just a fine return on these investments because they will be seller upgrades. If they’re really funky, maybe you won’t do as well, but the reality is, people will spend more when they know they will be in the house longer, those upgrades tend to just be better overall, and future buyers can tell. So go ahead, make the house yours!
If you’re planning on a 3 to 5 year time horizon, you want a mix. Fix a few things that bug you, that you maybe won’t get all of the money back on but you’ll get most of it, and a few things from this list that you know will appeal to future buyers as a nice return.
Any less time than that, focus only on the following, these will be the best return for the money you spend.
Ok I hope this goes without saying, but start with fixing anything that’s straight up broken. AC, windows, roof, pipes, if it doesn’t function, start there.
Ok let’s move on to the big one, the heart of the home, the kitchen.
The kitchen or kitchen adjacent is where most people spend most of the time in their house, so aesthetics and functionality is key. When thinking of the kitchen, the first thing I think about is flow. Can you knock down a wall or open up the space in any way to get that open feel going into the living room or dining room? Even a partial wall takedown can be helpful; pass throughs are super trendy. Bar seating is fantastic if you can pull that off with your layout.
Otherwise, focus on simple and clean upgrades. You may not even need to redo all the cabinets, you could get new cabinet faces or just paint the current cabinets and get new hardware.Honestly, sometimes hardware just makes all the difference. Manufactured countertops aren’t nearly as expensive as you might think and can also clean up a dated house. A new sink is an awesome choice too. New appliances that don’t go overboard in price are great if you have really old and dirty ones, and make sure to let the buyers know they come with the house.
Next up, a simple one: paint. Now the inside is easy, paint it white. It’s bright, shows off the most light and makes any space feel bigger. Buyers might ultimately choose a color scheme down the line, but white is neutral so they don’t feel the space is too personal and helps enhance the feel of being in the house with its openness.
Next, the exterior. I’m not a big fan of the white with black trim that all the flippers are using, but you should use some sensibility when choosing a color scheme. Generally speaking, classic is always better, but research the style of your house to make sure it fits. Don’t use a Ranch style color scheme on a mid century house or a Spanish color scheme on a craftsman. A simple google search of the most popular color scheme for “insert your style of house here” will give you really great ideas. Avoid going too dark, I think this black on black is a trend that isn't going to age well. And always choose something where the front door can pop. That pop of color works across EVERY style of house without fail.
Ok here’s an easy one: carpet. Very few buyers want carpet, some can stomach it, but most hate it and think it's the very first thing they would do when they move in, and a small group of people literally won’t go see a house if it has carpet. Go with mid level flooring, this isn’t an area to skimp on, people can tell you laid down crap if you go with the entry level vinyl. Go with wood tones, avoid the gray colors schemes, and think lighter rather than darker. People notice flooring, so have it installed professionally as well.
Next is the master bathroom. I mean, after the kitchen area, you’re looking at another area where people spend a lot of time. This one can get really expensive, so if you’re only looking for a return on your investment, stick to tile and lighting fixtures, and any cabinetry. Also, buyers tend to prefer a walk in shower to a tub.
Don’t forget lighting fixtures. If you have dated fixtures, this is an easy one where if you can do the whole house, it’s no more than a couple hundred per fixture and it will really change the appearance of the home, both in terms of the amount of light and the general aesthetic.
Next up, a garage door. You wouldn’t think this, but replacing a garage door isn’t too expensive, maybe 1,500 at most. It can really clean up the look of the home and the curb appeal to update it and you should get more than that back without issue.
Speaking of curb appeal, never forget landscaping. Simple is always better which is a good thing for wallets, so refreshing grass if there is some, adding a few flowers or succulents is always great, and don't forget that Los Angeles has a free tree program where you can get awesome trees for...well...free. If the yard is in bad shape though, consider pulling it all out and going xeriscape. It might be a bit more money to do but it’s very desirable for buyers because of ease of maintenance.
Finally, let’s talk about a few random thoughts as well. If your windows are super old, you might consider replacing those. You may not get a great return on them, but buyers definitely look for upgraded windows both for noise reduction, insulation, and ease of use. Also, patio overhangs are great, don’t spend too much money on them, just do something clean simple and wood, but this is LA after all, anything that enhances the outdoor space is definitely a value add.
And finally, if you have a bit bigger of a budget a reconfiguration of the layout can be helpful. The common ones would be if you have 3 bed 1 bath, adding a bathroom is huge, even if its a half bath, and if you have a 2 bed 2 bath, if you can squeeze a third bedroom in out of the layout that’s already there, that’s an easy value add as well.
Ok there you have it! Thank you for reading, I hope you learned something about where to spend your renovation money, and if you did be sure to like and subscribe, and if you found this valuable, I’d incredibly appreciate you sharing this video with someone that could benefit by connecting with me. It’s super simple, and on my website there’s a button to Book A Consultation that connects directly to my calendar. I almost exclusively work with referrals because you all are people I know, trust, and appreciate the service I offer, so thank you so much for referring me! And of course, if you just found this video and you like my energy and personality and think my expertise would benefit you, I’d love to work with you as well!
At Stephens Real Estate, we offer a few value adding programs for both buyers and sellers that no one else is offering. For buyers, we put together a full marketing plan that paints you as the right buyer for your dream home. We can help recommend local lenders that will fit your financing situation, even if you’re freelance. And don’t worry about the inspections, we’ve got you covered. They’re free, all of them, no questions asked.
And If you’re looking to sell your home, we offer the ability to REMODEL NOW, and PAY WHEN YOU SELL with Zero fees, no interest, no upfront costs. Plus, we pay for all of the aspects of digital marketing from photography, drone footage, videography, 3D walkthrough and virtual open houses, social media campaign, custom website, targeted emails and more.