Bought a Fixer-Upper? Prioritize These 5 Renovations To Maximize Your Home’s Value Quickly
Written by
Cynthia Measom
Edited by
Chris Cluff
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Buying a fixer-upper is more common these days, especially among first-time homebuyers. According to a recent TD Bank survey, 59% of those who are planning to purchase homes this year indicated that they are interested in purchasing fixer-uppers or starter homes.
More than one-third of those surveyed are interested in buying more modest homes or ones that need some TLC because they want more affordable options.
If you’ve recently bought a fixer-upper, you might be wondering which projects to tackle first. To help, here are five renovations you should prioritize to maximize your home’s value.
Remodel the Kitchen
Added value to overall home: $20,000 to $28,000
Kim Tucker, a Realtor and certified homebuyer with kcmoHomeBuyer.com who purchases fixer-upper homes and resells them, said a new kitchen can raise the value of the home greatly. She said her company spends about $20,000 to $28,000 for their kitchen remodels, which include all stainless steel appliances. The ROI is almost dollar-for-dollar value.
“HGTV shows everyone ripping out walls, making the entire living area all one giant room, like new homes, but this can be very costly,” Tucker said. “Where we see the biggest bang for our buck is to open up the openings as much as we can without affecting the structure. Then reworking the layout of the work triangle if needed and, if at all possible, create an island, a bar or a pass-through.”
Replace the HVAC System
Added value to overall home: $6,000
“Let’s face it: If you can’t heat or cool a house, no one wants it,” Tucker said. “And if the HVAC does not work or function, a buyer cannot get a loan on a house. If it works, great, and is under 10 to 15 years, we will leave it. It also depends on how it looks. If it’s really rusty, we would replace it. The total cost to replace is generally for us somewhere around $10,000.”
Update the Bathroom
Added value to overall home: $22,000 to $27,000
Tucker said her company also spends a lot of money updating all of the baths in the fixer-uppers they buy. She estimates they spend on the lower end of $14,000 to $27,000.
“We go back with what there is, in most cases, unless it’s a 1950s original tub with no shower,” she said. “We always go back with some sort of shower situation [and] only a nice luxury shower in a primary attached bathroom.”
Tucker said they install a tub with a shower in the main bathroom for kids.
Install New Flooring
Added value to overall home: $5,600 to $12,000
Tucker said they always do something with the flooring in the fixer-uppers they purchase to resell.
“We refinish hardwoods,” she said. “If there are no hardwoods, we will often replace them with luxury vinyl plank that looks like hardwoods. And in the wet areas — kitchens, baths and laundry rooms — we replace with luxury vinyl tile. And we replace carpeted areas with carpet, just paying attention to high-traffic areas, like stairs with stair carpet and walkways through, say, the finished basement from the garage to the stairs with luxury vinyl plank or luxury vinyl tile.”
Tucker estimates that refinishing and replacing flooring in an entire house costs $8,000 to $15,000 for basic builder-grade materials.
Paint the Interior
Added value to overall home: $8,000 to $15,000
“We always, always, always paint with a professional painter,” Tucker said. “No DIY — unless you are my sister who takes a month to meticulously cut in and can create a professional job. Most of us just can’t make it look good. You want the same neutral paint throughout the entire house, with the possible exception of a few accent walls.”
Tucker said they spend $8,000 to $15,000 on this update, and you should expect the cost to be on the higher end of the range if you’re painting over dark, bold colors like red or black.
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