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Best ROI Home Improvements for Your Home

As you begin making plans to list your Lahaina home for sale, no doubt you are contemplating all that could be done to attract a lucrative offer from a great buyer.  You may even be considering major updates or renovation projects, but are they worth it? Will they help you sell your home more quickly and at top dollar? The answer depends largely on the improvements you desire to make. But overall, Hawaii’s real estate market tends to reward sellers for thoughtful home renovations with a higher sale price.

In fact, with our Compass Concierge program, the home improvements we make yield 8% higher sales prices compared to the property’s listing price. And 82% of Concierge homes close within the first three months of listing. Should you invest in a $25,000 kitchen upgrade, as a general rule of thumb, you can expect to recuperate your full investment in the increased sale price. It is true that your brand-new and highly functional kitchen may turn heads and bring you offers quickly, but the real added benefit is the return on your investment, dollar for dollar.

High-value renovations

As a general rule, the most lucrative ROI improvements are those that give your Lahaina home for sale additional square footage, such as transforming unfinished space into a usable room or expanding the house by building additional rooms. Do you have a space that could be used as an office, an additional bedroom, or a playroom? Adding a bathroom can also set your home apart from comparable single-family homes for sale in Lahaina. In Hawaii, living space is a highly sought-after commodity, and people are willing to pay for it.

Moderate value renovations

If time and budget do not allow for high-value additions, consider renovating existing rooms and outdoor areas to make them more spacious, modern, and functional. The single most popular home renovation is the kitchen, and for good reason. The kitchen in any home is about so much more than just preparing meals. It’s the heart of family life, a place to gather and connect, and a hub of activity. Other popular renovations include expanding outdoor living with a deck or pergola or updating an existing bathroom with new fixtures, countertops, and plenty of cabinet space.

Possibly valuable renovations

The ‘Ohana Real Estate Team will be your best source of information for potential additions that buyers truly want. Every market has its own unique trends and different features appeal to other buyers. Among single-family homes for sale in Lahaina, swimming pools and outdoor living spaces with beautiful views are very popular. Most homes boast four or more bedrooms and three or more baths. As you are contemplating whether or not to take on renovations, consider the following:
  • How does your home compare to other homes on the market?
  • What is the cost of making the renovations you are considering?
  • Are your renovations valued by home buyers in Lahaina?
  • Will the renovations force you to list your house at a higher price than the market can tolerate?
Working backward from what your house is likely to sell for and considering the budget for completing your desired renovation project will help you determine if your renovation project is worthwhile. Remember to talk through your plans with your real estate agent for wise and timely counsel.

Renovation before selling vs. renovation for my family’s enjoyment

So often, homeowners don’t really consider ROI home improvements until they are preparing to sell their houses. They then lament having waited so long to invest the money into making it the best property it could be. You’ll get your best ROI value from the high and moderate-value renovations if you complete them while your family can enjoy them. Then the investment has a double benefit — pleasure for your own family and a retained higher value for your home when you eventually sell.

Most renovations do add value to your home, but many renovations are recuperated fully in the sale.

Things to remember

As you contemplate your options and whether or not ROI renovation is a great idea for you, assess several factors. First, ask yourself why you are renovating. If you want to make a great home even better for your family, that’s a great reason. Depending on the current property condition and the state of the real estate market, you may even turn a profit on the project.

Next, ask yourself if this is a good time to be making renovations. If you have a tight deadline for starting work in your new home or are feeling overwhelmed with the stresses of relocation, a large renovation project will likely prove too much to handle. Are you in a good position financially to make the renovation? You’ll want to make this investment debt free — or as close to debt free as possible, as you have your next home purchase to consider, and it will be important not to do anything that encumbers extra debt or makes it difficult to qualify for a mortgage.

Additionally, make sure you have adequate time to finish any renovation you undertake before listing your home. Construction projects always require more time than anticipated, and supply-chain issues that are still prevalent only add to the time required.

Finally, is the renovation project you are considering simply a personal interest, such as an indoor climbing gym, or does it have broad appeal for potential buyers? If you’re remodeling with the intent of selling, you’re not remodeling for you, you’re remodeling for them.

Call the experts at ‘Ohana Real Estate Team

For ROI advice, home improvement resources, and help with your real estate needs, reach out to the ‘Ohana Real Estate Team. They know Lahaina homes for sale and will guide you through the process from preparation to the closing table. Give them a call today.

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We pride ourselves in being able to provide a high level of service to all types of sellers and buyers. We are here to help you achieve all your real estate goals here in Hawaii.