Thinking of selling? Here are the home renovations that have the highest ROI in South Carolina.
Since the onset of the pandemic, home renovations and DIY projects have surged, despite the widespread labor shortages and supply-chain issues plaguing the construction industry. With increasing household incomes and record-high demand for homes, renovations will likely continue to rise throughout the coming year. According to the Leading Indicator of Remodeling Activity (LIRA), annual homeowner renovation and repair spending could reach $430 billion by the second half of 2022!
"With home inventory down and values increasing, we've seen an increase in requests for home equity lines of credit (HELOCs). HELOCs allow you to pull equity out of your home to cover the cost of repairs, renovations, or consolidate debt," says Gibson Tucker, SVP – Mortgage Lending at First Palmetto.
As Americans continue to modify their living spaces to accommodate working, schooling, and more time spent at home in general, certain home features have become more valuable than they were three years ago. So, if you're considering selling your home (and taking advantage of the current seller's market), what types of renovations will yield the most significant returns?
Keep reading for the six smartest renovations to boost your home's resale value.
Curb appeal
Any improvements to your home's exterior will help catch the attention of prospective buyers. Fresh paint, landscaping, and an updated garage door are relatively quick ways to boost curb appeal and make your online listing stand out among the crowd. In fact, the average garage door replacement in South Carolina saw a 95% ROI in 2021, higher than any other type of improvement.
Energy efficiency
Energy efficiency becomes more critical every day. A new HVAC, energy-efficient windows, insulation and air sealing, and solar panels are just a few improvements that can increase your home value and make the home more comfortable and durable. At a bare minimum, switch out all incandescent or halogen light bulbs for LED bulbs – they look better and last up to 50 times longer.
Livable square footage
As Americans spent more time at home during the pandemic, the need for maximum livable square footage became obvious. A home office, converted attic, sunroom, and mother-in-law suite were at the top of home buyers' wish lists in 2021.
"With real estate inventory levels at an all-time low, increasing the heated and cooled square footage can solve the need for additional space and also be a solid long-term investment as real estate prices continue to climb," says Tucker.
Kitchen remodel
Certain kitchen features that were once rare have become ubiquitous and almost expected by buyers today, such as kitchen islands, commercial-style ranges, drawer-style microwaves, and wine refrigerators. If a full-fledged kitchen reno is out of budget, you can at least update the cabinet hardware, replace cabinet fronts with new Shaker-style wood panels and drawers, throw on some fresh paint and replace a few appliances to boost your home's resale value. According to Cost vs. Value's 2021 Value Report, the average minor kitchen remodel saw an 81% ROI in South Carolina last year.
Bathroom remodel
When it comes to upscale bathrooms, most buyers want a double sink vanity with stone countertop, ceramic tile shower with a frameless glass enclosure, a freestanding soaker tub with high-end faucets, and recessed medicine cabinets with lights. At the very least, adding all white ceramic tile and white paint to the walls and ceiling, along with a standard white toilet and solid-surface vanity, will go a long way.
Functional outdoor space
Another side effect of the pandemic is the strong desire for functional and stylish outdoor space for entertaining. If you've endured at least one South Carolina summer, you understand the value of a backyard pool. However, pool construction has been backed up significantly since 2020 and may not be an option for those looking to increase their resale value anytime soon. Some more time-sensitive projects include adding a wooden deck or outdoor kitchen.
The average wooden deck addition in South Carolina saw a 64% ROI in 2021. Using pressure-treated wood with a built-in bench and planter and wood posts and railings in the same decking material is a simple yet effective improvement to the overall functionality of the backyard.
If you think it might be an ideal time to sell your house, talk with an agent to learn about any additional renovations that increase home values in your specific area. Finally, start making plans today, as there is an extremely high demand for contractors and subcontractors in South Carolina. Many homeowners are waiting six months or more to get started on home renovations, and when they do, there's no guarantee they'll finish on time.
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Category: Mortgages
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