From home owners, a common question I hear is, "What should I spend my renovation budget on in order to get the highest return when I sell?" This is a really complicated question. It depends on how long you are planning on staying in the house or what condition the house is in already and other market factors, but there is some tried and true advice that the experts (myself included) use to help guide their clients.
#1. If your home is in need of basic maintenance, but could use a new kitchen or bathroom, take care of the maintenance first. Fixing a leak in the roof or a wet basement is more important to buyers than granite counter tops.
#2. Curb appeal still matters! Don't be afraid to take the time to update the outside of the home. Whether it's just power washing the siding, investing in a new front door or planting some flowers so the home markets well, it is still important to draw people into the home by the way the outside of the home looks too. It also photographs better too!
#3. Additions may be the way to go; for example, if you live in an older home (most people in New England), you may have multiple bedrooms, but only one bathroom. The addition of one bathroom can offer up to 86.4% of investment return.
#4. Functionality may be the best investment if you plan to stay for a while. Instead of adding a room, you could invest in Nest thermostat system or additional parking. These kinds of systems can be more about convenience and be a wise investment in areas where the cost of living is higher. Nest offers a $100 rebate through National Grid and who wants to spend a half hour after work every day looking for parking?