Source: Phoenix Agent Magazine | Emily Marek
One of the best ways sellers can make their home stand out in today’s market is by upgrading their space with luxury renovations and amenities. The latest Zillow report has the scoop on which renovations can generate the highest profits.
Kitchen upgrades such as steam ovens and pizza ovens yield the highest returns. They can boost home sale prices by up to 5.3% — for the typical home, that’s over $17,000.
So-called “she-sheds,” meaning dedicated “retreat” spaces for the woman of the house (usually in the form of a renovated backyard shed) can boost sales by 2.5%, although homes with the “woman-cave” upgrade did stick on the market for an average of two days longer. In short, it may take longer to sell a home with certain niche upgrades, but when the right buyer comes along, they’ll be willing to pay a higher price.
“Not every buyer will appreciate a chef’s kitchen or a putting green in their backyard, but those who do are willing to pay more for these personalized amenities,” said Zillow Home Trends Expert Amanda Pendleton. “Post-pandemic homebuyers who had plenty of time for self-reflection now have a greater sense of what they want and need in a home.”
In addition to skill and hobby-based upgrades, buyers are also gravitating towards (and willing to pay more for) unique features such as soapstone countertops or terrazzo floors.
On the flip side, there are several features that can actually hurt home values: Outdated features like laminate flooring and tile countertops may signal to buyers that the home hasn’t been updated in a long time, consequently lowering the perceived value. Walk-in closets also lower the typical home value by 0.7%, suggesting that today’s buyers would rather utilize that space in a different way.
According to Zillow, the top features that can increase a home’s asking price are, in order: a steam oven (+5.3%), a pizza oven (3.7%), professional appliances (+3.6%), terrazzo floors (+2.6%), a she-shed (+2.5%), soapstone (+2.5%), quartz (+2.4%), modern farmhouse features (+2.4%), hurricane shutters/storm shutters (+2.3%) and mid-century features (+2.3%).
The top features that can help homes sell faster are, in order: a doorbell camera (5.1 days faster), soapstone (3.8 days faster), open shelving (3.5 days faster), a heat pump (3 days faster), a fenced (back)yard (2.9 days faster), mid-century features (2.8 days faster), hardwood (2.4 days faster), walkability (2.4 days faster), shiplap (2.3 days faster) and a gas furnace (2.3 days faster).