You have decided to sell your home and start making preparations to list it on the market. Of course, everyone has an opinion. Your real estate agent will tell you to fix a few items and the home stager will reconfigure rooms to optimize lighting, neutrality and space. You decide to invest in sprucing up the house to ensure great photos for the listing and secure a quick sale. If your budget is limited, should you invest in some interior design work like a fresh coat of paint in a few of the rooms, or freshen up the outdoor curb appeal and play to the buyer’s first impression?

What is the Return on Investment for Interior Design?

I am often asked whether there is tangible bang for the buck in interior design improvements. In a US News and World Report article, “Renovations that Yield the Best Return on Investment,” Daniel Bortz, a personal finance freelance writer, gives a host of interior design Return on Investment (ROI) comparisons. The ROIs range from 66% for a big project like remodeling the kitchen to 43% for a home office. Of course if you are looking to list your home quickly, larger interior design projects are out of the question. For something simpler like adding a fresh coat of paint, some estimates suggest a ROI of close to 150%. If you replace an old carpet, you will get a ROI just over 100%. Well thought out, easy fixes can be done in a relatively short span of time and vastly improve your chances of selling the home. Before listing, you can even transform a space into a home office with the help of a home stager and minimal effort.

What is the Value of Boosting your Curb Appeal?

Alternatively, putting your dollars into landscaping has the advantage of impacting the buyer as soon as he or she sees the home. Although great curb appeal will certainly not make up for an interior that is unable to meet the buyer’s needs, it does have a high ROI. I have seen ROI estimates that range from 75% to 426% for landscaping, so there is a lot of inconsistency in the opinions. However, where all of the metrics seem to agree is that improving curb appeal is a worthwhile endeavor. I would add, that freshening up the home’s exterior can also be more pragmatic than an interior design fix. Landscaping can be as straightforward as clearing away old and overgrown shrubs and replacing them with some flowering ones for the front of the house. If the lawn looks terrible, investing in sod can transform the look of the yard. A landscaper can even remove old trees that block windows, and these types of improvements will enhance both the exterior and interior lighting of the house.

So, does Interior Design or Curb Appeal offer more Bang for the Buck?

If you have to choose between investing in the interior or exterior of your home prior to sale, remember that both will have a return on investment. Ask your real estate agent to advise you on comparable properties in your neighborhood and the quality of the competition. Are you in a neighborhood that is established and populated with elegant, stately homes, or is the home a starter home in which case you probably have more flexibility in your choices. Also, think about the inconvenience factor. If you have small children or interior changes would be particularly disruptive, perhaps sprucing up the outside is a more practical way to invest your money.

One other general consideration is the visual impact of the changes you make. If a room has cracked or peeling paint and it is easy to spot, then repainting must surely become the priority. If a carpet looks old and smells of mildew, similarly, it must go to the top of the list. On the other hand, if the front lawn is in a state of disrepair, it makes sense to fix it and perhaps leave the backyard for the new owner. For some new homeowners, seeing a front yard that demands a lot of work can be completely overwhelming and a deal breaker, so in this instance, curb appeal should also be prioritized

Therefore, both interior design work and improved curb appeal can have tremendous bang for the buck. Use your real estate agent as a touchstone, and consider your personal situation and neighborhood so you can make decisions which work for your family.

Still not sure?  I would be delighted to give you my thoughts on improving the salability of your home in northern New Jersey. Contact me at email: victoria@victoriacarter.com, or phone: (973) 220-3050, and let’s arrange a convenient time to discuss the options!