If you’re considering sprucing up your home, you’re in good company. Whether it’s small, DIY projects like new plantings or freshening a room with a bright coat of paint, or larger, gut renovations, pandemic home improvements are booming.
About 75 percent of U.S. homeowners took on at least one home improvement project since the start of the COVID pandemic, according to a Porch.com survey. And 78 percent said they planned to undertake at least one home improvement project through the first half of 2021.
But some improvements are wiser than others, especially if you expect to sell your home in the near future. That’s because certain remodels and renovations give you more bang for your buck, while others aren’t as valuable when it comes to return on investment.
“Surface-level cosmetic renovations that serve to brighten or refresh the space such as painting, swapping out fixtures, and resurfacing floors, are often going to give you the best return,” said Bridget Elkin, licensed real estate salesperson with Compass. “It’s about eliminating the everyday wear and tear and taking care of the to-do list that most buyers don’t want to inherit.”
The return on investment for more extensive projects, said Elkin, will depend on the condition of your home and its location.
“Redoing kitchens or baths, or re-siding a house is expensive,” she said, “so you’re more likely to see a sales price that justifies the investment if you’re in a desired location and the general condition of the house warrants it. A sparkling new kitchen in a fixer-upper handcuffs a potential buyer more than providing them with a head start.”
Thanks to a hot market – listing inventory on the North Fork fell to a 14 year low in the last quarter of 2020, according a Douglas Elliman market report – some North Fork homeowners are taking on improvements with the intent to sell. If you’re among them, it’s smart to heed design choices made with the buyer in mind.
“Work with a designer or agent to pick finishes that will be universally valued rather than pay a premium for specific finishes that you like but may not have broad appeal,” said Elkin. “New windows are definitely a selling point but because of their expense, you’re unlikely to recoup full value. The same could be said for replacing the roof. Of course, if the condition of the roof or windows is compromising the home in any way, they should be repaired or replaced. Having permits in place for renovations when required is important to protect the investment and avoid last-minute headaches.”
Well-designed outdoor spaces are particularly sought-after by North Fork buyers.
“Pools and pool houses are in big demand in the COVID and post-COVID market,” said Thomas McCloskey, licensed associate real estate broker with Douglas Elliman. “Last year, pool permit applications were up two- to three-hundred percent over past years on the east end of Long Island. Houses with these features are selling faster and getting top dollar.”
If you want to capitalize on buyers’ desire for pools, but don’t want to or have the time to install one, Elkin noted that obtaining a pool permit can add value without incurring the expense of installation.
Another in-demand feature? Whole-house generators.
“With people working from home,” said McCloskey, “they are in big demand with three- to six- month waits.”
In addition to weighing the cost-effectiveness of planned home improvements, you’ll also want to time them right.
“It is a good idea to plan and budget for renovations during your time owning the home,” said Elkin. “The ‘updated’ or ‘renovated’ tag typically only has meaning if it was done in the past five years.”
