How to increase home resale value in Chicago
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Before you tackle that home renovation you've been dreaming of or dreading, think about how it could affect your home's resale value.
Why it matters: Chicago sellers need to rake in all the cash they can if they're giving up lower mortgage rates.
By the numbers: Eight of the top 10 projects that command the highest return on investments in the U.S. are exterior changes, from fixing up the garage to building a deck, according to Angi data shared with Axios.
- In Chicago, replacing a garage door or a front door — two of the cheaper projects — cost under $1,220, on average.
- A minor kitchen remodel will set back Chicago homeowners $24,733, on average.
Zoom in: Since moving into her "forever" condo in Lakeview last year, Lori Jan has renovated the primary bathroom and made some cost-effective kitchen improvements — like hiring professionals to reface almond-colored cabinets that clashed with the otherwise white space.
- "The cost was half that of new cabinets," she tells Axios.
The big picture: If you plan to stay at least five years, go ahead and spring for your dream kitchen, says Angie Hicks, chief customer officer of Angi.
- If you're selling in the next year, it might be time to roll your sleeves up and tackle less sexy projects — like finally fixing that leaky faucet.
Reality check: Higher interest rates make tapping into home equity more expensive, Axios' Emily Peck reports.
Be smart: You shouldn't expect to earn every penny back on things like a new roof or air conditioning unit — today's buyers expect the basics to work, Hicks says.
Pro tip from Dan Balanoff, who recently remodeled his West Loop loft: Don't let design companies sway your vision. Instead, he hired a contractor whose work he likes.
- "I was responsible for ordering the major appliances and materials, which saved nearly $100,000," says Balanoff, who tells Axios he scored discounts buying from wholesalers and paying in cash.
Here are Hicks' other top tips for getting the highest ROI.
🏡 Consider your neighborhood. If every house has 2.5 bathrooms, you might not need to add a third.
🌷 Invest in curb appeal. Replace your garage door, paint your front door, spruce up your landscaping.
🏠 Neutralize. If you're selling soon, it's not the time for a funky accent wall — it's time for fresh, neutral paint.