What You Should Know About Updating Your Home In 2022
Updating your home before selling can make a lot of sense in some situations, while in others not so much. Let’s dive into this home update question and see which answer might fit your situation.
If you’re thinking about whether or not to update your home before selling, you may be concerned about what your net return will be. In this case, it will be important to select the right updates with the highest return possible.
To begin choosing your home updates it helps to know what is most popular in your particular housing market area. In other words, what updates are the top home sales in your area mentioned in their descriptions?
For instance Zip Code 78233 in San Antonio Texas
Popular home upgrades in zip code 78233
For us to find out which popular home upgrades are in zip code 78233 an MLS search is the best way to find that information. Any agent can do it for you and they may already have it ready in hand.
Some background information on the search first. The query was simply how many single-family homes were sold in San Antonio from 2017-to 2021 in each year?
Our second question is how many single-family homes were sold in my target area of zip code 78233?
And our third search query is how many homeowners declared major renovations in my target zip code? These searches give us a macro view of the overall housing market activity in the area and help us decide how to stand out with the upgrades we select. This is what I came up with:
How Many Resale Single Family Homes Were Sold In San Antonio Texas?
| Year 2017 | Year 2018 | Year 2019 | Year 2020 | Year 2021 |
|---|---|---|---|---|
| 16,254 | 16,501 | 17,188 | 18,068 | 18,179 |
As you can see since 2017 single-family home sales numbers have been steadily increasing year after year in San Antonio. That’s good news if you are thinking about selling. When markets fluctuate to a home buyer market you often see these numbers decline.
Next, I will narrow the search to my target zip code and see what happens. Keep in mind this search will not include any newly built homes for any given year.
How Many Resale Single Family Homes Sold In Zip Code 78233?
| Year 2017 | Year 2018 | Year 2019 | Year 2020 | Year 2021 |
|---|---|---|---|---|
| 413 | 396 | 428 | 380 | 441 |
Zip Code 78233 encompasses many older and established neighborhoods so I’m not too surprised how consistent these numbers came out. I do expect these numbers to increase in the future as neighborhoods have been opening up new sections over the past few years.
My second search adjustment will be to check in on any major rehab activity. Not every single listing declares rehab activity but I like to check in on this search option just to get a feel for what to expect as I narrow down the search.
How Many Homeowners Performed Recent Major Rehab In Zip Code 78233?
| Year 2017 | Year 2018 | Year 2019 | Year 2020 | Year 2021 |
|---|---|---|---|---|
| 85 | 87 | 102 | 68 | 82 |
Now that we know from the above chart which years have the most major rehab activity we can take special care to dissect any given year and spot trends we may want to follow. 2019 appears to be a heavy rehab year so let’s see what trends in that year.
10 Home Updates Mentioned In Zip Code 78233
| Home Updates | Year 2017 | Year 2018 | Year 2019 | Year 2020 | Year 2021 | Total |
|---|---|---|---|---|---|---|
| Granite Counters | 79 | 95 | 101 | 103 | 115 | 493 |
| New Flooring | 52 | 66 | 77 | 60 | 86 | 341 |
| New Roof | 59 | 44 | 61 | 67 | 59 | 290 |
| Laminate Floors | 52 | 62 | 61 | 42 | 54 | 271 |
| New Windows | 19 | 20 | 25 | 19 | 33 | 116 |
| New Cabinets | 24 | 17 | 19 | 12 | 28 | 100 |
| Exterior Paint | 23 | 18 | 17 | 12 | 18 | 88 |
| Garage Doors | 12 | 11 | 14 | 9 | 10 | 56 |
| Insulation | 7 | 3 | 4 | 6 | 8 | 28 |
| New Siding | 5 | 4 | 8 | 8 | 3 | 28 |
Finally armed with the information above we now have some options to consider. Over the years granite countertops have remained very popular updates to have in the home. In fact, with a little quick math, we would conclude it’s mentioned in about 25% of all home sales in the area.
So, what should you do with this little insight? On one hand, if you feel like the demand is still there and the return on investment is right. Adding granite to your home might be a good option. On the other hand, you might feel that granite is overdone for the market, and opting for some other countertop option might fit better.
On the bottom end of the chart, we have new siding and insulation. These are two of the least mentioned updates in the area. Are they worth your time? To answer that question let’s check in with the National Association of Realtor’s data on remodeling projects.
Cost Recovery For Interior Remodeling Projects
Three interior remodeling projects top the list for return on investment. Insulation upgrade returns 100% investment, new wood flooring has a 118% return, and refinished hardwood flooring brings back an astonishing 147%. Wow!
From there the returns diminish below 86% and bottom out at 56%. Although returns on averages below 100% may seem unattractive at first, be sure to weigh updates in your own neighborhood as the last step. Updates with a low return in one area may have a higher return in a different neighborhood.
Don’t forget exterior remodeling projects! The two leading projects mentioned by The National Association of Realtors this year are roofing and garage door updates. Both have 100% return and add instant appeal to a home and marketability.
Doors and windows score in the 60% range but remember in the right home or neighborhood they may be just the appeal it needs.
Bottom Line
When considering updating your home in any market prioritizing updates based on the broader market first and working your way down to the neighborhood level is key. If you’re thinking about a move in the near future let’s connect and discuss your options for making the best move possible.
Krishna Perkins
