The Best $10K You Can Spend on Home Renovations, According to Real Estate Agents
Written by
Angela Mae
Edited by
Heather Taylor
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As a homeowner, your property may very well be one of your greatest assets. But like anything else, houses need some care and maintenance to maintain their value. If you’re trying to increase your property value so you can sell it for the highest possible price, you may need to do some renovations on it.
Before planning any home renovations, however, it’s important to consider your budget. After all, you could be looking at spending thousands or tens of thousands of dollars on your project. Depending on your budget and goals, you may want to stick with one or two large renovations or several smaller updates.
If you’re not sure which option is right for you, here’s some advice from real estate agents about the best way to spend a limited amount of money on renovations and get the best return on your investment.
Home Renovations To Make When You Have $10,000 to $15,000
“When you are looking to maximize the return on your investment, the most cost-effective improvement you can make is to paint the interior of the home a neutral color,” said Yolanda Muckle, agent at Long and Foster Real Estate. “I also advise my clients: If you have hardwood floors under old carpet, remove the carpet and refinish the floors. Additionally, once you paint, do not forget to update the light switch and electrical outlet covers.”
Don’t forget about curb appeal. Muckle advises power washing the exterior of your home and then painting it to spruce it up and make it more appealing to potential buyers.
“Make sure to obtain two to three estimates from licensed contractors,” Muckle said. “Many of my clients are willing to spend $10,000 to $15,000 on these improvements to increase the sales price of their home.”
Luis Carlos Perez from Side, who is also a licensed Realtor and founder at Center Real Estate, added, “If a homeowner is looking to sell their home on a limited budget, focusing on small renovations can be more beneficial than undertaking large-scale projects.
“For instance, making minor yet impactful changes, such as applying a fresh coat of paint on the front door or exterior accents of the home, can significantly enhance the home’s curb appeal. This can create a positive first impression for potential buyers without the need to paint the entire house.”
Another small improvement could be upgrading the kitchen cabinetry and countertops — rather than replacing the entire kitchen. Or it could be sprucing up the front yard with some fresh bushes or plants that draw the eye and add some color.
Sebastian Jania, owner of Ontario Property Buyers, a real estate solutions and investment company, also weighed in.
“The typical cost of these renovations vary widely based on the state that one is in and what exactly it’s going to take to make the renovations,” Jania said, “whether it’s simply painting cabinets for a kitchen or whether one has to completely strip the original kitchen and put a new one in. An example for my market is that, on average, a new kitchen will cost about $15,000, [a] new bathroom $7,000 to $10,000.”
Landscaping, Jania added, “can be as little as a few hundred to a few thousand dollars, and painting is typically around $5 per square foot. With all these renovations, it is also important to consider whether one is buying the materials for the contractor or whether one is even going to consider doing the work themselves.”
Save Money Over Time With Smart Renovations
If you have a smaller budget and don’t plan to sell right away, you can always make some even smaller upgrades that can pay off over time.
“If you plan on staying in the home for five-plus years, then I would invest in energy efficiency, such as blowing insulation into the attic or getting new energy-efficient appliances,” said Alex Caras, broker at Magellan Realty LLC. “This might cost you more money — around $2,000 for insulation — and maybe an additional $2,000 on the appliances, but the energy savings you will experience over the five-plus years will offset much of those costs.”
Renovations To Make When You Have a Larger Budget
Whether you choose to make larger, more expensive updates to your home or you opt for smaller, more affordable ones depends on both your budget and your goals. Think about whether you want to sell your home and thereby get the highest offer you can, or you want to update your home for personal reasons.
If you have a larger budget, you can focus on bigger renovations. But that doesn’t mean you should neglect the little things.
“Smaller updates will make a big impact if the home is really outdated,” said Jamie Curtis, global real estate advisor at Street Sotheby’s International Realty. “If the finishes are tolerable, then a homeowner will want to focus on one big project at a time, like remodeling the kitchen or master bathroom.”
The cost of a major remodel can vary greatly, though.
“Cost estimates will always be dependent on the market and square footage,” Curtis added. “The cost of materials and labor have surged in recent years, so naturally this has an impact on homeowners.
“In a general sense, I would expect $20,000 plus for a full bathroom renovation and $50,000 plus for small kitchen renovations in Columbus, Ohio. In a market like L.A., homeowners should expect to pay $300 per square foot for any renovation.”
Home Renovations With the Greatest Return on Investment
According to a recent report by Curbio, a leading pre-listing home improvement company, these are some of the top renovations to make if you’re looking for a high return on investment:
- Minor kitchen upgrades (e.g., repainting the cabinetry, installing new countertops or appliances, etc.): 377% ROI
- Refinishing hardwood flooring: 348% ROI
- Minor interior updates (e.g., updating the electrical wiring): 297% ROI
- Replacing a roof: 288% ROI
- Replacing carpets: 280% ROI
The renovation project with the highest ROI, according to the Curbio report, was a kitchen refresh. Unlike a full remodel, which has an expected average ROI of 220%, a kitchen refresh brings in around a 377% ROI. If, for example, a homeowner spends $15,000 on kitchen updates, the person could earn roughly $56,550 in profits.
Ultimately, it’s up to you which types of home renovations you focus on. But if you’re working with a limited amount of money and want the highest returns, smaller-scale projects may provide the most bang for your buck.
“By focusing on small-scale renovations, the homeowner can maximize their limited budget and achieve a noticeable impact on the overall presentation of the home,” Perez said. “These improvements are more cost effective than major renovations and can make the property more appealing to potential buyers, increasing the chances of a successful sale.”
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