Curbio, Inc. released its newest “Preparing to Sell: 2022 Home Improvement Report”, which analyzes projects completed by Curbio to determine which ones will get homeowners the highest return on investment (ROI) when selling and surveys homebuyers on what they’re looking for in a home.
Curbio conducted its homeowner insights survey to find out more about the misconceptions people have regarding pre-listing home improvements. The survey found that nearly half of homeowners—or 43%—don’t think they need to update their house before listing. However, it turns out that’s not what homebuyers think.
Key Findings:
- Some 67% of potential homebuyers say they only consider homes with updated features and layouts.
- Roughly 68% of potential homebuyers say the biggest dealbreaker when buying a home is disrepair and wear and tear.
- An estimated 77% of potential homebuyers won’t consider purchasing a home that isn’t move-in-ready.
When renovating or making repairs to get a home ready to sell, different projects can result in vastly different returns. New data analysis of renovation projects across 30+ U.S. markets shows where home sellers can get the most bang for their buck.
These are the top five home improvement projects that generate the highest ROI:
- 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%
The report found that the project bringing the highest return is a kitchen refresh, with a 377% ROI; if a homeowner spends $15,000 to update their kitchen, they can expect to sell for an additional $71,550 to a $56,550 profit.
The data also shows that refreshing key areas of a home, like a kitchen or bathroom, delivers higher returns than full remodels. A bathroom refresh has a 256% ROI, and a full bathroom remodel has a 120% ROI.
“Sellers often have the misconception that putting work into the home means they need to fully renovate their homes before listing, but simple refreshes in your kitchen or to your floors actually have much higher returns and take a lot less work,” said Olivia Mariani, Chief Marketing Officer at Curbio. “In a competitive housing market, it’s important for agents and sellers to work to attract potential buyers and make a home stand out. We created this new report as a tool for realtors and their clients to make smart, savvy choices when getting a home ready to sell.”
The housing market has slowed significantly since last year. According to the National Association of Realtors, home sales this April were 23% lower than last April, meaning the buying frenzy is over. Although home prices and mortgage rates remain high, homebuyers now have more options to choose from, making the market increasingly competitive.
To read the full report, including more data, charts, and methodology, click here.