Best Home Improvements to Add Value - A Guide For FSBO Sellers

Selling your home on your own – known as “For Sale By Owner” (FSBO) – can be both exciting and challenging. On one hand, you can save on realtor commissions, maintain control over the selling process, and personally engage with potential buyers. On the other hand, you have to handle all the marketing, negotiations, and property showings yourself.

One key strategy to help your FSBO listing shine and attract high offers is through targeted home improvements that add real, tangible value. In this guide, we’ll delve into why such improvements are vital and explore specific projects that enhance your property’s appeal and increase its potential sale price.

Why Should FSBO Sellers Consider Home Improvements?

You need to invest enough time and money to make substantial home improvements – so is it truly worth it to undertake them before selling your house? Let’s talk about why FSBO sellers should consider home improvements and how they affect a property’s sale price:

1. Stand Out in a Competitive Market

Whether you live in a bustling city or a quiet suburban neighborhood, the real estate market can be fiercely competitive. When you choose to go the FSBO route, you’re competing not just with other FSBO properties, but also with homes listed by professional agents who often have years of market insight. Upgrades like fresh paint, modern fixtures, or a renovated kitchen can be the difference between a quick sale at your desired price and a home that sits on the market for months.

2. Maximize Your Asking Price

While FSBO sellers aim to save on real estate agent fees, it’s still crucial to list your home at a price that reflects its true market value. Completing strategic improvements can justify a higher asking price. Buyers today have easy access to online listings, virtual tours, and comparative data. They’ll quickly pick up on any issues or outdated features in your home. By investing in high-impact projects, you remove potential buyer objections and increase the perceived value of your property.

3. Faster and Smoother Sale

Homes that have been thoughtfully updated typically spend less time on the market. Why? Because the buyer’s first impression is positive, and there are fewer items for them to nitpick or request fixes for during the negotiation process. This smoother experience can benefit FSBO sellers significantly, as it reduces the back-and-forth in negotiations and helps avoid potential deal-breakers during inspections.

What Are Home Improvements That Add Value?

Every home improvement project isn’t created equal. Some upgrades will yield a higher return on investment (ROI) and appeal to a broader range of buyers, while others may simply reflect personal taste and won’t necessarily boost your home’s market value.

The goal for FSBO sellers is to focus on projects that balance aesthetic appeal, functionality, and cost-effectiveness. Below, we’ll examine some of the best home improvements that often pay off when it comes time to sell:

Kitchen Remodeling

A full kitchen remodel can be expensive, but there are updates that can instantly refresh a tired kitchen without breaking the bank:

• Replacing hardware: Changing out old cabinet handles and drawer pulls for more modern, sleek designs can create a surprisingly big impact. Choose finishes that match your existing kitchen style or opt for stainless steel or brushed nickel for universal appeal.
• Painting cabinets: Instead of installing all-new cabinets, consider painting or refinishing existing ones. White, cream, gray, and even navy hues can give your kitchen a contemporary flair. Ensure you use high-quality paint and primer designed for kitchen cabinetry to avoid chipping.

• Expanding kitchen space: If you have the budget and structural feasibility, knocking down a non-load-bearing wall to create an open floor plan can dramatically change the flow of your home. Open-concept living is popular among buyers who love the idea of a combined kitchen, dining, and living area for entertaining.
• Upgrading appliances to energy-efficient models: Appliances like refrigerators, dishwashers, and ovens are typically focal points in the kitchen. Modern, energy-efficient models not only look attractive but also reassure buyers they won’t need to replace major appliances soon.

Bathroom Upgrades

Bathrooms might not be the largest rooms in the house, but they carry a lot of weight in homebuyers’ minds. An updated bathroom can convey cleanliness, comfort, and luxury even if it’s relatively small.

• Updating fixtures: From sink faucets and showerheads to cabinet handles and towel bars, swapping out outdated fixtures can quickly modernize the space. Trendy fixtures in finishes like brushed gold, matte black, or polished chrome can transform a bathroom’s entire aesthetic.
• Installing low-flow toilets and showers: Conserving water is both eco-friendly and budget-friendly. Low-flow toilets and showerheads save on utility bills and are seen as a valuable feature by environmentally conscious buyers.
• Replacing old faucets: If your faucets are old or corroded, replacing them with new, stylish options can dramatically improve a bathroom’s overall look. Plus, modern faucets often come with water-saving technology and anti-scalding features, which can be a huge selling point.

Enhancing Curb Appeal

The moment a potential buyer pulls up to your property, they form an impression. If your home’s exterior looks run-down, even the most beautifully renovated interior might not be enough to salvage its overall perception. Making your home more inviting from the outside can significantly boost its perceived value.

• Planting native flowers and shrubs: Not only do native plants thrive in your local climate, but they also require less maintenance and watering – appealing to eco-conscious buyers who want an easy-to-care-for yard.
• Regular lawn maintenance: A well-maintained lawn signals to buyers that you’ve taken care of your home. Keep the grass trimmed, remove weeds, and fill any bare patches. Adding fresh mulch around flower beds also helps your landscaping pop.
• Choosing weather-resistant paint: Protect your home from the elements and enhance its visual appeal by investing in high-quality, weather-resistant exterior paint. These paints can last longer and help prevent issues like peeling and fading.

Improving Energy Efficiency

Modern buyers care deeply about environmental sustainability and long-term cost savings. By emphasizing energy-efficient features, you can tap into a growing market of eco-minded consumers. What’s more, these improvements often result in direct savings on utility bills – a major draw for many potential homeowners.

• Installing double or triple-pane windows: Double or triple-pane windows with inert gas fills can significantly reduce heat transfer, keeping your home cooler in the summer and warmer in the winter. Buyers will appreciate lower energy bills and improved comfort.
• Sealing all window leaks: Air leaks around windows can account for a surprising amount of heat or cooling loss. Properly sealing these gaps with caulk or weatherstripping enhances indoor temperature regulation and helps reduce drafts.
• Evaluating solar panel providers: If solar power is feasible in your region, installing panels can set your home apart. Do your research on reliable providers, warranties, and panel types. This investment can significantly reduce monthly electricity bills, which is a compelling selling point.

Adding Smart Home Features

Smart home technology is increasingly common and can make a big impression on tech-savvy buyers. From security to energy management, these upgrades show that your home is up-to-date with modern living standards.

• Smart locks: Keyless entry systems that can be controlled via smartphone apps are a major convenience. Potential buyers will appreciate the ability to lock or unlock doors remotely, ensuring safety for family members even when they’re not at home.
• Surveillance cameras: Strategically placed cameras provide an added layer of security. Look for cameras with motion detection and smartphone notifications, so homeowners can monitor their property in real-time.
• Programmable settings: Smart thermostats allow homeowners to create custom temperature schedules, potentially saving on heating and cooling costs. Some models can even learn user habits and adjust settings automatically.

Adding or Improving Outdoor Spaces

As lifestyles have shifted to favor more time at home, functional and appealing outdoor areas have grown in importance. Outdoor spaces that enable relaxation and entertainment can be a powerful selling point.

• Selecting durable materials: If you’re adding a deck, choose materials like composite decking or pressure-treated wood to withstand weather changes. These materials often require less maintenance and remain durable over time.
• Incorporating built-in seating: Not only does this free up space for people to mingle, but built-in benches or seating areas can also be a highlight feature. Buyers often love outdoor spaces that come “move-in ready” for social gatherings.
• Adding a fire pit or water feature: A cozy fire pit can extend the usability of the patio well into cooler evenings, while a small pond or fountain can create a sense of tranquility that prospective buyers notice immediately.

Final Considerations Before Starting Improvements

While making your home as appealing as possible is essential for a successful FSBO sale, it’s just as important to approach these improvements with a clear strategy. Not all projects have the same payoff, and it’s crucial to be practical about budgeting, ROI, and whether to tackle projects yourself or hire professionals.

Budgeting for Improvements Wisely

Decide how much you can allocate to home improvements without jeopardizing other obligations like mortgage payments or moving expenses. A good rule of thumb is to prioritize projects that will have a direct influence on your home’s resale value. Projects such as minor kitchen remodels, bathroom upgrades, or energy-efficient improvements typically offer the best returns. Meanwhile, purely cosmetic projects or those that reflect very niche personal tastes might not recoup their costs in the short term.

Allocating Funds Based on Expected ROI

If you only have a limited budget, pick the projects that align best with buyer expectations in your market. For instance:

• Kitchen and bathroom: Typically provide a strong ROI due to their high usage and emotional appeal.
• Curb appeal enhancements: Often offer immediate impact at a relatively low cost. Even simple steps, like refreshing the front door or adding potted plants, can elevate the home’s exterior appearance.
• Energy efficiency: Particularly significant if you live in an area with extreme weather or high utility costs. Advertise these upgrades prominently when marketing your FSBO listing.

Considering DIY vs. Professional Services

The internet is filled with do-it-yourself tutorials, and it can be tempting to handle every project on your own – especially if you’re already saving on realtor commissions. However, some projects are best left to the pros. Electrical work, major plumbing changes, or structural alterations can quickly turn into safety hazards if not done correctly. Additionally, poorly executed DIY work can come back to haunt you during a home inspection, negating any initial cost savings.

Strike a balance: tackle straightforward upgrades – like painting, replacing fixtures, or minor landscaping – yourself, and hire professionals for complex tasks.

Return on Investment (ROI) Analysis

As you plan home improvements, always consider your ROI. This doesn’t just mean the potential spike in your home’s sale price but also the intangible benefits. Projects that differentiate your home from the local competition can justify a higher listing price or a quicker sale. Meanwhile, move-in-ready properties are less likely to spark requests for buyer concessions. By proactively handling improvements, you maintain bargaining power.

Conclusion

When selling FSBO, the right home improvements can attract more buyers and boost your final price. Small updates like fresh paint or modern fixtures, paired with major enhancements, can make your home shine. With Propbox, you can easily organize and market your home’s unique features, speeding up the sale and ensuring you save on commissions. Skip the headaches and let Propbox help you sell faster, smarter, and for more.