As mortgage rates have climbed and talk of economic downturn ramps up, homeowners who waited to sell might now find themselves in a quandary as the scorching hot real estate market finally starts to cool.
Mischa Fisher, Chief Economist at home services company Angi, says that all-time high property prices have made many homeowners decide to stay put and renovate instead of buy a new home. But is spending money on home improvements a wise move right now, especially with rising costs due to inflation and a still-burdened supply chain?
As it turns out, you don’t need to go whole hog when it comes to home renovations. Small upgrades can make a huge difference (and increase your ROI).
For example, take the traditional – and usually pricey- kitchen remodel. Fisher touts the benefits of smaller upgrades to a kitchen. Replacing cabinet hardware, installing a kitchen island, or adding a new backsplash “can instantly add value and make your kitchen feel new,” he says.
Partial upgrades also are a good move for another popular remodel target: bathrooms. While the return on investment for a full bath remodel is 72.7% nationally, per Angi data, smaller fixes like a new vanity or bathroom hardware give buyers the freshened-up look they want without putting sellers in a budget crunch.
“If you think you might move eventually, you can usually find a compromise between what you want and what will give you the biggest ROI,” Fisher says.
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