Are you finally considering dipping your toes in the market – now that you have recovered enough equity to get a check at closing, rather than write one?
Before listing and during the listing preparation phase, you should take a hard look at the demographics of your neighborhood. Who lives there now? Who do you see moving into the neighborhood? What renovations are other sellers completing as they list? And who will likely be most interested in buying your house?
These are must consider demographics before you attack any potential home improvement project related to selling your home.
Below you will find the master list of the features that homebuyers – as a whole – are seeking, according to the National Association of Home Builders.
We are going to add a twist because it is surprisingly easy to give older buyers what they want while including features that younger demographics demand – energy efficiency.
EnergyStar Appliances
Percentage of buyers who want this feature: 94%
Cost to renovate: $2,637 – $3,077 for an 80-square-foot space
People like saving money, and monthly energy bills are clearly a way to achieve that goal. At this point, you should simply ignore appliances that are not EnergyStar certified.
How to Make It Energy Efficient: No work required, the energy efficiency is built in from the jump.
Separate Laundry Area
Percentage of buyers who want this feature: 93%
Cost to renovate: $2,637 – $3,077 for an 80-square-foot space
Fifty-seven percent of homebuyers say they wouldn’t buy a home without a laundry area. The estimated cost is for a laundry room renovation and includes replacing existing cabinetry, countertops, the sink and flooring, painting the walls, and updating the plumbing and lighting fixtures.
It is also responsible for a large part of your home’s energy use and a stellar way that home sellers can satisfy two buyer desires – separate laundry area AND energy efficient appliances – in one fell swoop.
How to Make It Energy Efficient: Start with an EnergyStar certified washer and dryer. Be mindful of venting, and try and use the heat produced by the dryer productively.
Exterior Lighting
Percentage of buyers who want this feature: 90%
Cost to install: $150 to $250 per fixture
Homes with exterior lighting help grab potential buyers’ attention before they even set foot in the front door. In fact, exterior lighting is the most-wanted outdoor feature, according to NAHB.
In addition to added security, exterior lighting also increases curb appeal and extends the hours in which you can enjoy your outside living areas.
How to Make It Energy Efficient: Buy solar powered lights.
Energy Star-Qualified Windows
Percentage of buyers who want this feature: 89%
Cost (including installation): $270 – $800 per window
Swapping out your old windows for new fuel-efficient versions will help your home stand out to buyers looking to cut down on utility costs.
How to Make It Energy Efficient: EnergyStar windows are naturally more efficient, but double pane and reflective glass can both boost your home’s efficiency
Garage Storage Space
Percentage of buyers who want this feature: 86%
Cost to install: $2,025 – $2,363 for a 380-square-foot space
Buyers with hobbies, buyers with an affinity for lots of “stuff”, buyers that are handy man inclined and need room to work, and buyers with growing families will need lots of storage space either now or in the future.
Unlike an attic or backyard shed, the garage is accessible – generally just a few steps away from the front door, making it easier to transport items such as tools or patio chairs or boxes of toys to and from other parts of your house.
The installation cost includes adding cabinetry, a peg wallboard for tools and improved lighting and electrical circuits
How to Make It Energy Efficient: Start by using sustainable materials, like bamboo and natural corkboard, along with hypoallergenic and eco-friendly seals and paints. Are you also building that separate laundry room? Consider venting the heat from the dryer into your garage workspace.
Eat-In Kitchens
Percentage of buyers who want this feature: 85%
Cost to install: $1,000+
The traditional dining room has been declining for years. Most buyers prefer more productive uses of their space. Hardly frequented and rarely used describe many homeowners dining room areas. Eat-in kitchens are a must-have for many home buyers, especially families with children.
A note for those buyers that have trouble envisioning what a space might look like after renovations – the location of the dining room in most older homes make it feasible to change a two room kitchen + dining space into a more open and modern eat-in kitchen.
You only need to remove an interior wall in many cases. Removing a wall is relatively inexpensive, but that price can quickly escalate if there’s additional repair work that needs to be done Something to consider when planning for this improvement, is that 85% of potential buyers also placed a high priority on a walk-in pantry. Another opportunity for you to provide multiple benefits with one renovation if you are a seller.
How To Make It Energy Efficient: EnergyStar appliances are the obvious choice. The kitchen is a wonderful place to use for sustainable and recycled building materials. Counter-tops to cabinets, there’s a lot of potential to give life into recycled materials.
Amazon.com Best-selling author, Shashank Shekhar (NMLS 8176) is a mortgage lender with Arcus Lending, offering loans for home purchase and refinance. Shashank has been featured as a mortgage expert on Yahoo! News, ABC, CBS, NBC and FOX. He has been named "Top 40 under 40" most influential mortgage professionals in the country.
