How to increase home resale value in Denver
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Before you tackle that home renovation you've been dreaming or dreading, think about how it could affect the resale value.
Why it matters: Denver sellers need to rake in all the cash they can if they're leaving record-low mortgage rates.
- Metro area homes lost an estimated $5 billion in housing value over the same period as mortgage rates rose, Zillow reports.
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 replacing windows, per data Angi shared with Axios.
- In the Denver area, replacing a garage door or a front door — two of the cheaper projects — costs around $1,000 on average.
- A minor kitchen remodel will set back Denver homeowners $24,389 on average.
Zoom in: Real estate agent David Bell bought an investment property in 2021. After eight months and $170,000, the Virginia Village home has a completely fresh feel.
- He worked with Art Kerkezian of ArtWork Homes for the project, which includes new wiring and windows, fresh flooring, a brand new kitchen, a professionally landscaped yard and contemporary finishes.
Yes, but: Before you get to the glamorous projects like new kitchens, you need to access "things you can't see like, electrical, plumbing and sewer," he says.
The big picture: The type of project you should prioritize depends on how long you'll be in the house, says Angie Hicks, chief customer officer at Angi.
- If you plan to stay at least five years, go ahead and spring for your dream kitchen.
- If you're selling in the next year, it might be time to roll your sleeves up and tackle less sexy projects (think: 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 A/C unit. Today's buyers expect the basics to work, Hicks says.
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 convert that half to a full.
🌷 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.