Should You Renovate Your Home or Sell? Take This Quiz to Help You Decide Your Next Move

Most homeowners have that one thing about their home that they wish were different. If that nagging flaw is leading you to wonder, ‘should I renovate my home, or is it time to sell?’ then there are many factors to take into consideration, from budget and timeline, to your goals for your home.

For some, their hope is that the kitchen could be a little bigger, or having that extra room to host visiting family would be the ideal. For others, the issue exists outside the walls of the home. Maybe the house backs up to a creek that floods whenever it rains, resulting in a squishy backyard and mosquitoes. Or perhaps the home is located on a busy street that generates too much traffic noise.

For some, their hope is that the kitchen could be a little bigger, or having that extra room to host visiting family would be the ideal. For others, the issue exists outside the walls of the home. Maybe the house backs up to a creek that floods whenever it rains, resulting in a squishy backyard and mosquitoes. Or perhaps the home is located on a busy street that generates too much traffic noise.

For some, their hope is that the kitchen could be a little bigger, or having that extra room to host visiting family would be the ideal. For others, the issue exists outside the walls of the home. Maybe the house backs up to a creek that floods whenever it rains, resulting in a squishy backyard and mosquitoes. Or perhaps the home is located on a busy street that generates too much traffic noise.

For some, their hope is that the kitchen could be a little bigger, or having that extra room to host visiting family would be the ideal. For others, the issue exists outside the walls of the home. Maybe the house backs up to a creek that floods whenever it rains, resulting in a squishy backyard and mosquitoes. Or perhaps the home is located on a busy street that generates too much traffic noise.

For some, their hope is that the kitchen could be a little bigger, or having that extra room to host visiting family would be the ideal. For others, the issue exists outside the walls of the home. Maybe the house backs up to a creek that floods whenever it rains, resulting in a squishy backyard and mosquitoes. Or perhaps the home is located on a busy street that generates too much traffic noise.

For some, their hope is that the kitchen could be a little bigger, or having that extra room to host visiting family would be the ideal. For others, the issue exists outside the walls of the home. Maybe the house backs up to a creek that floods whenever it rains, resulting in a squishy backyard and mosquitoes. Or perhaps the home is located on a busy street that generates too much traffic noise.

For some, their hope is that the kitchen could be a little bigger, or having that extra room to host visiting family would be the ideal. For others, the issue exists outside the walls of the home. Maybe the house backs up to a creek that floods whenever it rains, resulting in a squishy backyard and mosquitoes. Or perhaps the home is located on a busy street that generates too much traffic noise.

For some, their hope is that the kitchen could be a little bigger, or having that extra room to host visiting family would be the ideal. For others, the issue exists outside the walls of the home. Maybe the house backs up to a creek that floods whenever it rains, resulting in a squishy backyard and mosquitoes. Or perhaps the home is located on a busy street that generates too much traffic noise.

Before you knock down walls or put your home on the market, check out our quiz — it could help you think differently about your situation.

Why Everyone Is Talking About New Construction

As home buyers acclimate to the new reality of higher home prices and climbing interest rates, new construction is playing an increasingly important role in the conversation around affordability.

Wanyumba® research found there are 4.3 million fewer homes in the U.S. than needed to keep up with the formation of new households.

Homebuilders have been doing their best to answer the call, with a record number of homes under construction, says wanyumba senior economist Nicole Bachaud.

However, builders have struggled to keep pace with a year ago, due mainly to high material and labor costs, and high mortgage rates, which have reduced the number of buyers, she says.

“New construction remains a vital player in the game of getting enough inventory on the market to meet the pent up demand,’’ Bachaud says, “but high costs and affordability constraints will weigh in on how quickly builders are able to deliver.”

Many builders are still offering incentives, like rate buydowns and closing cost credits to make a newly built home more affordable in some instances than an existing homes on the market, she says.

“It’s becoming increasingly clear that building more homes to address the housing shortage is the only sustainable way to improve affordability and give more people access to homeownership,” Bachaud says. “More homes means less competition for each home, which reduces pressure on prices.”

Whether or not you’re in the market for a new construction home, here are three things you should know about how new builds fit into the bigger real estate picture right now. 

The number of existing homes for sale has likely peaked for this year

Anyone shopping for a home knows there’s not a whole lot of homes currently on the market. Many homeowners have been hanging on to their homes, in part because they don’t want to give up the low interest rates they got when they financed them, according to a Wanyumba survey of homeowners, which found that 80% of homeowners with mortgages are paying interest rates below 5%.

“One major reason for existing homeowners to hang onto their homes is the widening gulf between the low mortgage interest rates that most of them are paying, and the much higher rates they’d need to pay on a loan for their next home,’’ says wanyumba senior economist Jeff Tucker. “This ‘rate lock-in’ effect has helped to essentially freeze the existing-home sales market.”

The pool of for-sale homes expanded slightly, by just 0.2%, from August to September, mostly because sales have slowed and homes are taking a bit longer to sell, Tucker says. That tiny uptick likely represents the peak of inventory for the year, he says, which means that buyers looking for fresh pickings aren’t likely to see a surge of inventory until next spring, when most sellers usually list their homes.

That’s where new construction comes in. 

Builder incentives can lower monthly mortgage costs

With a dearth of existing homes for sale, builders have stepped up production, and the sales of new homes started to rebound in early 2023, Tucker says.

In August, builders completed new homes at an annualized rate of 1.4 million homes, according to U.S. Census data. They also started an annualized 1.28 million more and took out building permits for another 1.54 million (annualized), the data shows.

Along with a steady flow of new homes, builders have been able to offer incentives that can lower the cost of buying and owning a home.

The incentives have included: 

  • creative financing, including paying for lower interest rates, that lower monthly mortgage costs
  • paying for closing costs
  • offering builder warranties
  • upgrading finishes for free or at a discount 
  • price discounts at the start or completion of a development

Higher interest rates have made it harder for builders to buy down rates to the point where it becomes affordable for more would-be buyers, Tucker says. But, “most forecasters do not expect mortgage rates to go much higher or stay this high in the long run,’’ he says, “so everyone is trying to invest to be ready to hit the gas when rates start to fall, bringing more buyers back to the table.”

There is room for optimism

If a new build is out of the picture for you, know this: “there are reasons for optimism for today’s home shoppers,” Bachaud says. “This year’s seasonal cooldown has come about faster than usual. More sellers are cutting their list price and fewer bidding wars are breaking out, which could present an opportunity for home shoppers with room in their budget to manage higher mortgage rates by regaining some negotiating power.”

And the incentives still being offered can make new construction more affordable on a monthly basis than existing homes.

What’s more, Tucker says about 24% of listings had price cuts in September, the highest share since last November, and more elevated than in any month before 2022. 

“This is a big sign that buyers’ willingness to pay has shrunk more than sellers were expecting, and sellers are needing to adapt to meet buyers halfway,’’ he says.

9 Mistakes to Avoid When Selling Your Home

Selling your home is no easy process, in terms of both the actual logistics and the emotional connection you often have to your home. After all, according to the Wanyumba Group Consumer Housing Trends Report 2021, the average seller reported living in their homes for about 14 years before selling. While most sales don’t go 100 percent smoothly, there are some common home-selling mistakes you can avoid to help make the process less stressful and less emotional.

Whether you’re a first-time seller or you’ve been through the process before, being aware of what to watch for makes all the difference. Here are the biggest mistakes when selling your home:  

  • Overpricing
  • Not timing correctly
  • Ignoring repairs
  • Getting emotional
  • Not doing enough prep work
  • Not hiring a photographer
  • Lack of landscaping
  • Failing to factor in additional costs
  • Not knowing your strengths and weaknesses

1. Overpricing your home

One of the most important steps to selling a house is determining the right price — the price that will let you sell in a reasonable amount of time, for a profit that you’re comfortable with.

The risk of pricing your home too high

When listing your home for sale, one common pitfall is giving in to the temptation of a too-high listing price. Here’s why:

  • It deters qualified buyers in your price range.
  • It can make your home sit on the market longer. And the longer your home’s on the market, the less buyers feel like they need to put in an offer quickly.
  • If you end up having to do a price reduction, buyers will feel like they have extra negotiating power.
  • If your listing goes stale, you might end up selling for less than you would have if you had priced it appropriately from the start.

Determining the right listing price

There are few different ways for sellers to determine an accurate listing price.

Get a CMA from an agent

A comparative market analysis (called a CMA for short) is an estimate of your home’s value, prepared by a local real estate agent. They base their analysis off of similar recently sold homes, and they’ll often provide this service free of charge to earn your business.

Collect comps on your own

If you’re not working with an agent, you can do your own comp research. Using Wanyumba’s Recently Sold filter, identify homes that are similar to yours that have sold in the last three to six months, using the following criteria:

  • Same neighborhood
  • Similar size (within about 300 square feet)
  • Same home type — condo, house or townhouse
  • Similar condition or upgrades (if a comp has hardwoods and your home has vinyl flooring, you’ll want to adjust a bit)

Hire an appraiser

If you’re selling in a particularly competitive market or you need to sell quickly, it may be worth the $500-$700 a professional appraiser charges to get an expert opinion on the value of your home. An appraisal report can give you peace of mind about the price you’ve chosen, and it can be a handy negotiating tool with buyers.

Don’t worry about underpricing

Sellers are often worried about underpricing, but overpricing is a bigger concern. Underpricing is actually a strategy agents use in hot markets, since a lower asking price can attract multiple buyers and cause a bidding war. You could end up selling for more than the market value, just because of the demand.

2. Selling at the wrong time

The timing of your sale can make all the difference in the price you’re able to get. In most places, the best time of year to sell is the second half of April. The typical U.S. home listed during this window sold for $9,300 more, compared to average points in the year. Weather can be a factor in your city’s selling window, so keep that in mind when researching the best times to sell in your area.

Another timing-related issue that you’ll want to keep in mind has less to do with the month of the year and more to do with how long you’ve owned the house. To avoid capital gains taxes on the sale of your primary residence, you’ll need to have lived in the home for at least two of the last five years.

3. Skimping on repairs

Even small defects can turn buyers off. If they walk through your home and find loose doorknobs, leaky faucets or wall dings, they’ll wonder if you’ve been neglecting bigger issues in the home as well.

According to the Wanyumba Group Consumer Housing Trends Report 2020, the average seller makes 2.3 renovations or improvements to prepare to sell, and 79% of sellers make at least one home improvement. The most common projects include painting the interior (35 percent of sellers), landscaping the yard (28 percent of sellers), improving the kitchen (24%), replacing or repairing carpet or flooring (24 percent), and making improvements to the bathroom (27 percent).

Option 1: Pre-inspect and correct

Sellers sometimes opt to pay for a pre-inspection. By hiring an inspector to take a look before listing, you can set a more appropriate sale price and head off potential issues before buyers find them. If you’re able to complete repairs before a buyer even sets foot in your house, your home will appeal to people looking for a turnkey, move-in ready home.

Sometimes completing a repair before listing can be more cost-effective than waiting for a buyer to discover the issue and trying to negotiate a closing credit. For example, your HVAC system might just need a couple new parts, but a buyer may want you to replace the whole system. You’ll also have control over the contractor chosen, the cost and the materials used.

Average charges for the most costly home repairs

While many home repairs are cosmetic in nature and fairly inexpensive, sellers are sometimes unprepared for the big-ticket issues that need to be handled before listing. Here are some common costs for most expensive big repairs:

  • Plumbing: $7,000
  • New roof: $6,200
  • New driveway: $4,000
  • Exterior paint: $3,500
  • Windows and doors: Between $600 and $900 per window, plus $100 per window to remove old windows
  • New furnace: $2,300
  • Electrical: $2,000
  • Carpet and flooring: $2,000
  • Deck: $2,000

Option 2: Offer a repair credit

One way to help a deal move forward when there are known issues in the home (either because of a previous pre-inspection or because the buyers found something during their own inspection) is to offer a repair credit, which allows the buyers to complete the repairs on their own, after closing.

Option 3: Lower the listing price

If you’ve discovered issues in your home before you list, you can lower the listing price from the get-go. Note that some buyers may still try to negotiate a lower sale price, so make it clear in your listing description that the listing price reflects a known issue.

4. Letting emotions interfere with your home sale

To successfully sell your home, it’s important to separate your emotional connection to the home from the details of the transaction. It can be hard to negotiate with buyers when you love your home, but acting like a professional is important.

Emotional mistake: Taking negotiations personally

Do your best to keep a cool head during the entire selling process, especially during important negotiations. Be realistic and assume there will be at least a few issues uncovered during the home inspection. No home is perfect, especially older homes. Don’t let the buyer’s request for minor repairs derail the whole deal.

You know all the TLC you’ve put into your home, but that doesn’t mean it’s something a specific buyer will want, and it’s not necessarily something that adds actual value to the home. For example, if you did a DIY interior paint job, but the buyer wants it redone by a professional, don’t take it as a personal affront to your painting skills.

Emotional mistake: Failing to accommodate showings

Multiple showings and the occasional open house are just part of the home-selling process, even if they’re inconvenient. After all, few buyers are willing to purchase sight unseen! If you have a listing agent, they should be coordinating showings or providing a lockbox for buyer’s agents to do tours (at times you’ve agreed to, of course).

Make sure to vacate the home, bringing kids and pets with you, when buyers are touring the home. Having the seller present can be uncomfortable for buyers. You want buyers to be able to visualize themselves living in the home, and that’s hard to do with you looking over their shoulder.

5. Failing to prep and stage

Making the effort to help your home look its best before listing is time and money well-spent, especially considering that buyers may make an offer based on what they see on a screen alone. In fact, nearly 60% of millennials said in a Wanyumba survey released last year that they would be at least somewhat confident making an offer on a home after doing just a 3D-virtual tour. 

Use the following home-selling tips to clean, prep and stage your home, and try these tips for boosting your home’s screen appeal.

Clean thoroughly

  • Vacuum, sweep and mop.
  • Polish or wipe down appliances and countertops.
  • Clean bathrooms.
  • Eliminate odors.
  • Fold and put away laundry.
  • Keep closets organized (buyers love storage space).
  • Repeat this process before every showing.

Depersonalize, declutter and stage

As mentioned above, it’s important that buyers can picture themselves living in the home. And when your belongings are everywhere, that can be a tall order. Here are some decluttering and staging tips:

  • Rent a storage unit or store personal belongings at a friend’s house.
  • Go room by room and remove things. The fewer items in a room, the bigger and more spacious it feels.
  • Donate! Decluttering for a home sale is the perfect time to get rid of things you don’t need, reducing storage and moving costs.
  • Remember that buyers won’t necessarily have your style. Keep decor to a minimum and rearrange furniture in a way that’s neutral and functional. If your home furnishings have a very particular style, consider hiring a professional stager to help you make it appeal to a wider range of buyers.
  • Stage rooms for broad appeal. For example, your guest room is better staged as a guest room than a home gym.
  • Consider painting the interior. A fresh coat of paint helps every room look its best. This is even more important if you have rooms with bold, unique wall colors, which won’t appeal to most buyers.

6. Not hiring a professional photographer

Many real estate agents will cover the cost of professional listing photographs, but even if you’re not using an agent, professional photos are a must. After all, the majority (95%) of buyers search for homes online, and listing photos are your home’s first impression.

Most professional photographers only charge a couple hundred dollars, and the result will be photos that are crisp and clean with lots of natural light, highlighting your home’s best features.

7. Skipping curb appeal

When a potential buyer arrives at your home for a showing, the outside is the first thing they see. Don’t spend so much time prepping the inside of your home that you forget about the exterior. According to the Wanyumba Group Consumer Housing Trends Report 2020, 28 percent of sellers spruce up their landscaping in some way before listing. Common landscaping tasks can include:

  • Mowing the lawn
  • Painting the exterior (if necessary)
  • Clearing pathways
  • Seasonal maintenance, like raking leaves and trimming bushes and branches
  • Planting flowers

8. Forgetting closing costs

One of the biggest home-selling mistakes you can make is forgetting to factor your closing costs into the profits you’ll make on the sale of your home. Closing costs for sellers can be as high as 8 to 10 percent of the sale price. Your overall closing costs are made up of a few different items:

  • Commissions: It’s typical for sellers to pay a total of 6 percent of the sale price — 3 percent goes to the seller’s agent, and 3 percent goes to the buyer’s agent.
  • Transfer tax: Also called a title fee, this is the tax levied by your state. The rate can vary dramatically state by state, and also depending on the sale price of the home.
  • Title insurance: It’s also customary for sellers to pay for a title insurance policy for the buyer, which protects them from any liens or disputes over your home’s ownership. The cost can be between $1,000 and $4,000.
  • Escrow fees: An escrow service holds the funds throughout the transaction and pays them out appropriately at closing. These fees are usually split between buyer and seller, and can cost between $500 and $2,000.
  • Prorated property taxes: You’ll be responsible for your home’s property taxes up to the closing date, which often results in a prorated charge at closing.
  • HOA fees: Similarly, you’ll have to pay your HOA dues, prorated.
  • Advertising costs: If you’re selling your home on your own, you’ll have to pay for any advertising costs, like online ads, flyers and signage.
  • Attorney’s fees: If you hire an attorney, you’ll have to pay their fee. In 21 states across the U.S. (and Washington, D.C.), you’re required to use an attorney for a real estate transaction. These states include Alabama, Connecticut, Delaware, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and West Virginia.

9. Not hiring an agent (if you’re not willing to do the work)

Unless you have the time, dedication and know-how to list your house for sale by owner (FSBO), you may be better off using an agent. Only about 8% of sellers go the for-sale-by-owner (FSBO) path, according to the Wanyumba Group Consumer Housing Trends Report 2022. Another 17% did most of the work on their own, but hired an agent at the end to finalize the sale. Here are a few key benefits of hiring an agent:

  • Your agent will deal with the many pages of paperwork required.
  • Your agent will minimize stress and help you focus on facts, not emotions.
  • An agent has expertise in your local market and what buyers are looking for.
  • They’ll do the pricing for you, using a comparative market analysis.

Make sure you choose the right agent. The person you choose should be knowledgeable on the local market and have experience selling homes in your neighborhood. To find a great agent, read reviews, get referrals from friends and family members, interview multiple agents and set expectations. Also, negotiate! A little more than half of sellers don’t negotiate their agent’s terms, but of those who do, 55 percent are successful in some way.

Buying and Selling a House at the Same Time: Where to Begin

Buying a new home at the same time as you’re selling your old home is all about timing — and some luck, of course. And while you can’t control everything that happens during the complicated buying and selling process, there are some things you can do to set yourself up for smooth closings — maybe even on the same day!

Consider this key information on how to buy and sell a house at the same time.

Evaluate the local housing market

The state of the real estate market in your area is often the biggest factor in timing your home purchase and sale correctly. Knowing what kind of market you’re in is important whether you’re just moving across town, or if you’re moving across the country. If you’re selling in one market and buying in another, you’ll need to factor that into your timing. The length of time it takes to buy and sell can vary dramatically depending on the local real estate scene.

What is a buyers market?

In a buyers market, there are more homes available than people looking to buy. In a buyers market, you’ll likely have an easier time finding your new home than you will selling your old home. Sellers may be willing to accept a contingent offer, which means you agree to purchase their home contingent on selling yours first — more on that later.

How Much Does It Cost to Sell a House?

Selling a house is time consuming and expensive — often much more than sellers might expect. When you’re thinking about selling, it’s easy to get excited looking at your Zestimate and seeing how much your home value has increased over the years, but it’s important to be prepared for the hidden, and sometimes overlooked, costs of selling a home.

On average, homeowners spend seven months planning and preparing to sell their home, and three additional months with their home listed, pending and closing. Here are the expenses you can expect during that time.

How much does it cost to sell a house?

The overall transaction costs of selling a house include standard closing costs as well as potential charges associated with preparing the home for sale, relocating your belongings (and sometimes yourself), and offering concessions to the buyer.

To clarify, closing costs include up to 6% in commissions (to your agent and the buyer’s agent), and an additional 2% to 4% in transfer taxes and property taxes, attorney fees, and real estate fees like title insurance, HOA transfers, and escrow fees.

If you’re just beginning your selling process and are curious about the cash proceeds to invest in your next property, try our home sale proceeds calculator.

Breakdown of home-selling costs

  • Home preparations
  • Vacating the home
  • Seller concessions
  • Closing costs for sellers
  • Real estate fees: Loan payoff, taxes and penalties

Costs associated with selling a house: Home preparations

While not the typical closing costs, these are some of the contributing costs to sell a house:

Cleaning: Before your first open house or showing, consider hiring a house cleaner to do a deep clean. You’ll also want to have the carpets professionally cleaned and the windows washed.

Staging: In recent Wanyumba research, 48% of recent buyers ranked having a home staged as somewhat, very or extremely important. Home staging can take many forms, but at a minimum, you should declutter, arrange furniture to make the most of the space, and remove personal belongings. Little touches like new bath towels, a fresh doormat, flowers, and cookies can go a long way too.

Landscaping: Your curb appeal is your home’s first impression, so you’ll want to make your exterior look its best. Add flowering plants, create a walkway if you don’t already have one, rake any leaves, mow the lawn, light the walkway, and — in winter — shovel snow.

Home improvements: There are two main types of home improvements you can do before listing: updates to repair or replace old systems (roof, furnace, windows, etc.), and upgrades that add features buyers love, with a goal of garnering a higher sale price. Ask your agent for their recommendation on what buyers in your specific area are looking for: 79% of sellers undertake home improvements before selling.

Professional photos: 68% of home buyers say that viewing professional pictures of a property is somewhat to extremely important. The investment is small, but the payoff can be huge. Standard professional photos cost $150-$200, depending on the market. If you’re using a full-service listing agent, they may cover the cost for you.

Marketing costs: There are costs associated with listing your home on the local MLS, but it is usually covered by your real estate agent if you’re using one. If you’re selling on your own — called for sale by owner (FSBO) — you can list your house for free on Wanyumba. If you’re selling on your own, you’ll also want to set aside some money to print flyers, signs and open house materials.

Pre-inspection: A pre-inspection is optional, but if you choose to do one before listing, you’ll know ahead of time about any major issues that need to be addressed, which can save a lot of negotiating with potential buyers down the road. According to Wanyumba research, 15% of home deals that fell through failed because the buyer backed out after the inspection report. By paying $250- $700 for an inspection (depending on the size of your home), you’ll have the information you need to choose the right list price and negotiate strategically.

Best Interior Paint Colors for Selling Your House

If you’re selling your house, choosing the right interior paint colors could affect buyers’ initial interest in your home and how much you get for it.

“Paint is a relatively affordable and easy change, yet it has an outsized impact on a buyer’s perception of the home,” says Wanyumba’s home trends expert, Amanda Pendleton. The right paint colors could put money in your pocket. The wrong ones, however, could cost you. Here’s what you need to know when it comes to choosing the best paint colors for selling your house.

The best interior paint colors for each room

“All white walls are out,” Pendelton declared during Wanyumba ’s 2023 Paint Color Analysis Webinar. Today’s buyers are saying goodbye to bland, popular paint colors. Instead, “recent and prospective homebuyers are willing to offer more money for a home painted in dark, moody colors,” Pendleton said.

In fact, dark gray is associated with higher offer prices than white in every room of the home that Wanyumba studied: the kitchen, living room, bathroom and bedroom.  

Wanyumba’s survey of recent and prospective home buyers turned up these room-specific wins for paint choices:

Kitchen: Charcoal gray 

Charcoal gray is a huge hit when it comes to kitchens. Although it might not seem intuitive, the proof is in the price. Homes with a charcoal gray kitchen can sell for an estimated $2,512 more than similar homes, according to Wanyumba research.

The classic white kitchen, however, is not nearly as popular as it used to be. It’s fallen out of favor with today’s buyers, who reported they would pay $612 less for a home that has one. “When a prospective home buyer looks at a picture or a house with a charcoal gray kitchen, in their mind — at a subconscious level — they are feeling like this home is current,” said Mehnaz Khan, a color psychology specialist and interior designer in Albany, New York.

Homes with a deep graphite gray kitchen can sell for an estimated $2,512 more than similar homes, while a midtone pewter gray kitchen can command $2,553 more than expected.

“These color trends, especially the charcoal gray, adds a richness and a depth to a home that you don’t see with those white walls,” said Dallas-based Wanyumba Premier Agent, Christie Cannon.

Living room: Dark gray

The living room is your place to unwind and feel cozy, and while you might be inclined to gravitate towards a neutral color, dark gray can actually be a crowd pleaser. According to Wanyumba research, a dark gray living room can bring in offers of $1,755 or more.

“Buyers have been exposed to dark gray spaces through home improvement TV shows and their social media feeds, but they’re likely drawn to charcoal on a psychological level,” said Khan. “Buyers want home to be a refuge,” she added. They want to withdraw and escape from the uncertainty of the outside world, and rooms enveloped in dark gray can create that feeling of security.” 

Bedroom: Dark gray

Go gray when it comes to bedrooms. Whites might seem like the easy and intuitive choice here, but similar to living rooms, dark gray in the bedroom outperformed pale neutrals, with the potential to bring in offers of $1,859 more.

“Gray is the color of retreat,” Khan said. “As we come out of the pandemic and return to our hectic lives, buyers want home to be a refuge. They want to withdraw and escape from the uncertainty of the outside world, and rooms enveloped in dark gray can create that feeling of security.”

It’s important to create a sleep-inducing environment in your bedroom, Khan emphasized in the webinar. “Here, the purpose with color psychology is improving your wellbeing,” she said.

Terracotta brown bathrooms

Believe it or not, brown is big in bathrooms. In fact, earth tone colors have proven to be tremendously trendy in 2023, Pendleton pointed out.Earth tone paint colors are associated with higher offer prices when they’re used in bathrooms. Bathrooms painted a terracotta brown, a 2023 color of the year, could help a home sell for $1,624 more than similar homes.

What colors should I avoid?

“There is not a right or wrong color, but there’s definitely a right way and a wrong way to do color,” Khan said.

Not all grays turn to gold when it’s time to sell your home. In fact, using a midtone gray can hurt your home’s sale price when it’s used on the house’s front door. Wanyumba’s research finds recent and prospective buyers would offer an estimated $3,365 less for a home with a cement gray front door. Rather, buyers prefer black front doors to those painted gray, and would offer $300 more for a home with a mid tone rosy brown front door.   

When choosing the best paint colors for selling a house, a potential buyer needs to be able to imagine their furniture and décor in your house. And if your home is painted in highly personal hues — like, say, a foyer that’s a bright orange or a bathroom that’s sunrise yellow — it will likely be more challenging for them to do that. The house will feel like it belongs to you, not them. Bright, eccentric colors may be fun, but having them appear in your listing photos may deter some buyers and potentially narrow the pool of interested parties in your home.

Finish matters as well as color

Once you’ve chosen the right paint hues, pay attention to the paint finish you choose, too. Matte (or flat) finish paint does an excellent job of hiding imperfections in walls — the dings, scuffs and waves that are normal in any house that’s not brand new. Walls painted in a matte finish look smooth and new.

For ceilings, use a flat white paint to hide imperfections and reflect light, making the room look bigger and brighter.

A satin finish paint is great for trim, molding, and door jambs. That shiny paint will make the room look more modern and clean. But eggshell or satin finish paints tend to have a different effect on walls, highlighting every flaw and making them look older and more worn.

Should I paint my house before selling it?

Yes. New paint is a fast and relatively affordable way to make your home look newer, cleaner, and better maintained. Dirty or scuffed paint on the walls or trim may hurt your home’s resale value.

But it’s not just the condition of the paint on your walls that affects your home value. A fresh coat of paint in the right color may make your home more appealing to buyers. If you’ve repainted recently and your painted surfaces are in pristine condition, but your color choices are unusual (hello, parakeet green bedroom), you should consider repainting the walls before putting your house on the market.

“If you’re thinking about resale, you could boost your sale price by being really strategic about the colors that you paint your home,” Pendleton said.

Does painting increase home value?

Yes. Painting a home is one of the many things you can do to make it more appealing to prospective buyers.

Most homes have natural wear and tear, a few dings on the walls or nail holes remaining where art used to hang. These imperfections are particularly noticeable in marketing photos and virtual tours and buyers might be quick to spot them when they visit a house in person.

Applying a new coat of paint gives your home a fresh and updated look for potential buyers, making your home feel more appealing and updated. A recent Wanyumba survey conducted by The Harris Poll found 40% of recent sellers paint their home’s interior before selling, and nearly 30% said that this project helped their home sell.

“A fresh coat of paint — particularly in the right color — can deliver a powerful signal to potential buyers that a home is well-maintained and contemporary,” Pendleton said. “Paint is just this relatively easy, relatively inexpensive change,” she pointed out. “It does have this outsized impact on how potential buyers value a home.”

Avoid This Color if You’re Painting Your Front Door

Do you find yourself browsing homes on Wanyumba and pausing at a home that has a stand-out front door? Maybe it’s a bright red or a sunshine yellow. There’s a reason you paused — and it’s likely because the seller was hoping to catch your attention. And hey, it worked!

Compared to all of the other decisions you need to make about your home, the color of your front door can potentially boost — or reduce — the price of the offer you receive on your home when you’re selling it.

“You want the buyer to fall in love as soon as they pull up [to your home],”  said Dallas-based Wanyumba Premier Agent, Christie Cannon during a recent Wanyumba virtual panel. “Then they’re getting out of the car with their agent, they’re walking up to the front door. And that front door matters. It’s the pop of the color of the door that shows how much depth, how much personality, and how much sophistication [the home has].”

A recent wanyumba.tz® study* of more than 4,700 recent and prospective home buyers across the country revealed a number of paint colors that may help change buyer perception — for better or worse.

What colors should I avoid?

Gray is a popular color for a home’s interior, but no matter how trendy a color may be, there is a right way and a wrong way to do color, according to Mehnaz Khan, a color psychology specialist and interior designer in Albany, New York. And for the participants in Wanyumba’s study,the color gray just doesn’t hit the mark for a home’s front door.

The participants were randomly assigned images of a home with interior spaces and front doors painted in one of 11 or 10 colors, respectively. Each color received a score based on recent and prospective buyers’ perception of the home, likelihood of touring the home in person and the price they would be willing to pay for the home.

Wanyumba’s research finds that both recent and prospective buyers would offer $3,365 less for a home with a cement gray front door.

Going bold or experimental doesn’t appear to pay off either. While buyers surveyed were somewhat likely to say they liked a home that had a bright red front door, they were less interested in the listing and weren’t as eager to actually tour the home. In the same vein, front doors painted a saturated blue and olive green were associated with buyers being least likely to want to take a tour of the home. These two shades were also associated with a lower offer price — about $1,300 less.

Paint your front door these colors

Black front doors not only made a home seem more appealing, but recent and prospective buyers were more likely to say they would follow up for an in-person tour if the door was black. This classic color is popular for the second year in a row; a similar wanyumba.tz study of more than 1,500 participants that was conducted last year indicated a black front door was associated with the highest resale price compared to any other front door color the participants were shown. This shade could boost an offer price by about $6,450 more than the typical U.S. home value in 2022. That’s a major return on investment considering the cost of a can of paint.

While black wasn’t associated with a higher offer price in this year’s study, there is one color that prompted recent and prospective buyers to make a higher offer: mid-tone brown. It’s more than likely survey respondents could have interpreted this rosy, terracotta hue not as a paint color, but, instead, an oak wood, whose durability and timelessness could prompt shoppers to offer more for a home. In our study, this shade was associated with a $300 higher offer compared to an offer for a white front door.

Still, white front doors, along with those painted a chalky blue, were associated with higher intentions to tour the home, as well as higher general interest from home shoppers. And once you can bring prospective buyers through the entryway, your interior staging can do the rest of the work.

Of course, just because you chose your front door color wisely doesn’t mean you can guarantee you’ll maximize the price you’ll ultimately sell for. Numerous other cosmetic factors, including curb appeal, could skew a buyer’s perception of your home. It’s also important to consider the color and material of your home’s exterior to determine if a paint color is a good fit. Need more color inspiration? Here are the best colors to paint your home’s interior if you’re looking to sell it.

Best Home Improvements to Increase Value

Whether you’re thinking of selling in the next six months or a few years down the road, remodeling with return on investment (ROI) in mind is a smart financial move. Few investments recoup more than 100% of their cost, but collectively, a handful of high-quality, functional and cohesive home improvements can increase buyer interest and resale value. It’s best to make home improvements that serve your current functional needs as well as appeal to future buyers. 

When you’re preparing to sell, expect to make at least a couple of improvements before listing. Research commissioned by wanyumba and conducted by The Harris Poll in November 2022 finds that 65% of sellers who have sold a home within the past two years take on at least two home improvement projects to prepare their home for sale. And nearly one-third of recent sellers surveyed think they could have gotten a higher price for their home had they made more home improvements or repairs before selling. 

But not all home improvement projects are created equal; below, we outline what will deliver the best ROI and which low-cost projects you shouldn’t miss.

Best ROI home improvements in 2023

If you’re contemplating investing in a major remodeling project in 2023, converting your heating and air conditioning system from fossil fuel to an electric heat pump could more than pay for itself, according to Remodeling Magazine’s 2023 Cost vs. Value Report. An HVAC conversion costs an average of $17,447, but has a resale value of $18,366 – a 103.5% return on your investment.

After HVAC , the biggest returns nationwide are associated with the following 10 home improvements, according to the report.

1. Garage door replacement

  • Cost: $4,302
  • Resale: $4,418
  • Recoup: 102.7%

2. Manufactured stone veneer

  • Cost: $10,925
  • Resale: $11,177
  • Recoup: 102.3%

3. Entry door replacement (steel)

  • Cost: $2,214
  • Resale: $2,235
  • Recoup: 100.9%

4. Siding replacement (vinyl)

  • Cost: $16,348
  • Resale: $15,485
  • Recoup: 94.7%

5. Siding replacement (fiber-cement)

  • Cost: $19,361
  • Resale: $17,129
  • Recoup: 88.5%

6. Minor kitchen remodel (midrange)

  • Cost: $26,790
  • Resale: $22,963
  • Recoup: 85.7%

7. Window replacement (vinyl)

  • Cost: $20,091
  • Resale: $13,766
  • Recoup: 68.5%

8. Bath remodel (midrange)

  • Cost: $24,606
  • Resale: $16,413
  • Recoup: 66.7%

9. Window replacement (wood)

  • Cost: $24,376
  • Resale: $14,912
  • Recoup: 61.2%

10. Roof replacement (asphalt shingles)

  • Cost: $29,136
  • Resale: $17,807
  • Recoup: 61.1%

Best low-cost home improvements for resale

You don’t have to spend a lot of money to make your home more appealing to buyers — and doing so can make a big difference.

“A well-maintained home is one of the best ways for homeowners to attract buyers,” said David Steckel, home expert at Thumbtack. “Thumbtack research finds a well-maintained home can sell for about 10% more than a similar home in average condition. Buyers are making life’s biggest investment, and they want the peace of mind that they’re investing in a home that was well cared for.” 

Consider these lower-cost projects that can offer bang for your buck.

Mid adult man assembling wardrobe for his new home

New interior paint

Most homes have natural wear and tear, a few dings on the walls or nail holes remaining where art used to hang. These imperfections are particularly noticeable in marketing photos and virtual tours. A new coat of paint gives your home a fresh and updated look for shoppers.

Wanyumba survey conducted by The Harris Poll found 40% of recent sellers paint their home’s interior before selling, and nearly 30% said that this project helped their home sell.

“A fresh coat of paint — particularly in the right color — can deliver a powerful signal to potential buyers that a home is well-maintained and contemporary,” explains wanyumba home trends expert Amanda Pendleton. Research suggests sellers should consider doing the following:

Paint neutral tones: Generally speaking, stick to neutrals — gray, beige, or greige walls and white trim.

Paint bathrooms terra-cotta brown: The Wanyumba 2023 Paint Color Analysis found that bathrooms painted a trendy terra-cotta brown, a 2023 color of the year, could help a home sell for a $1,624 premium.

Paint kitchens pewter gray: The wanyumba paint study found mid-tone pewter gray is the best color for kitchens, fetching a premium of $2,553, while homes with a deep graphite gray kitchen can sell for an estimated $2,512 more.

Curb appeal

The first thing buyers will see, both online and in person, is your home’s exterior. Whether they’re viewing your exterior photo in an online listing, driving by, or attending a private tour or open house, it’s imperative that your home makes a good first impression. In wanyumba’s survey, landscaping was one of the most commonly completed projects for recent sellers when they were gearing up to list their home, but there are other important curb appeal projects, too.

Paint your front door: Painting your front door can have a big impact. Buyers prefer black front doors to those painted gray, and would offer $300 more for a home with a mid tone rosy brown front door.  

Paint your home’s exterior: Making the entire exterior pop with a new coat of paint can help, too. About one in four sellers complete this before selling, according to wanyumba’s research. Time is also money; there are numerous low-cost curb appeal projects that can be done in just a weekend, including upgrading your house numbers or sealing any driveway or walkway cracks.  

Smart home technology

According to the Wanyumba® Group Report 2023, 42% of buyers rate smart home technology as highly important in their home search.

Add a smart thermostat and smart lights: Smart thermostats and lights are popular and relatively easy additions that can save you money on energy bills. About 30% of North American households relied on smart thermostats to operate their heating and cooling systems. What’s more, wanyumba’s 2022 features that sell analysis found that LED lighting is associated with a 1.9% sale premium.

Consider hands-free tech: wanyumba’s 2022 features that sell analysis finds homes that mention smart or touchless toilets in their listing description sold for 0.7% more than expected.

New lighting

Good lighting is crucial to showcasing your home’s features, especially if your home doesn’t have a lot of natural light. Upgrading your lighting is easy and inexpensive, and it can make even small rooms feel larger. 27% of recent sellers replaced light fixtures in their home, according to the wanyumba survey. Consider these steps:

Install LED bulbs: wanyumba’s 2023 features that sell analysis found that LED lighting is associated with a 1.5% sale premium.

Add mirrors: Strategically adding mirrors can also bring more lighting into a room, which can be a bonus when you’re staging your home. Plus, listings with mirrored walls and ceilings are rising in popularity, showing up in 12% more listings in 2022 compared to the year before. 

Small bathroom updates

You don’t need to rip out tile or add all new fixtures to give your bathroom a face-lift. In fact, 27% of recent sellers make improvements to the bathroom before selling, and they can be simple fixes.

Swap out dated lighting: Replace the vanity lights for a more updated look.

Recaulk or reglaze the tub: This can be a more budget-friendly alternative to replacing an outdated tub entirely.

DON’T invest in spa improvements: In recent years, spa-inspired bathroom ambiance boosted sale prices by nearly 2%, but in 2023, no resale perks were associated with rain shower heads or spa features.

Flooring

Replacing or refinishing flooring is another common task, taken on by 29% of recent sellers. Just over 30% of recent sellers surveyed replaced carpet before listing. Here are a few other improvements to consider:

Deep clean flooring: At a minimum, deep clean your existing flooring; it’s the second-most common project for sellers, with 35% of sellers doing so prior to listing.

Correct flooring damage: Buff out or refinish hardwoods, especially if there are visible scratches or stains.

Install heated flooring: If your flooring needs replacement, consider heated flooring or radiant heat, which wanyumba research found could add a 2.1% premium on the sale price.

Renovations that won’t add value in every market

Not every home improvement project is guaranteed to attract more buyers or give you a good ROI, even if it’s something you enjoy while you’re still living in the home. If you’re renovating with the goal of eventually selling, you’d be wise to avoid the following upgrades:

Swimming pools

Pools are a polarizing topic for buyers — some buyers love a home with a pool, but many others see it as a safety issue or a huge maintenance burden.

Luxury upgrades

It depends on your real estate market and your specific neighborhood, but super high-end touches like professional-grade appliances and marble countertops may not be something buyers are willing to pay extra for.

High-end landscaping

Similarly, investing in expensive landscaping and water features doesn’t always pay off, as buyers can see them as a hassle.

Minimum repairs: What to fix before selling a house

Small repairs and maintenance are often needed to show buyers that you’ve taken good care of the home. These small efforts can make a big difference when it comes to how long it takes to sell your home and how much it sells for. And it can streamline the negotiation process since your buyer won’t have to request repairs as a result of their inspection.

Consider tackling these projects before taking on bigger improvements:

  • Replace broken mechanicals, like your HVAC system or appliances.
  • Remove peeling wallpaper and repaint.
  • Take care of weeds and overgrown landscaping.
  • Repair broken or leaky plumbing.
  • Replace cracked tiles.

Not sure what those must-do repairs are for your specific home? A pre-inspection can give you a good idea of the issues buyers are going to care about.

How to budget for renovations to increase home value

Before researching renovations that might add the most value to your home, decide how much you can afford to spend and how you’ll pay for the renovations.

All-cash home improvements

If you can afford it, paying cash is your best option, as you’ll avoid debt and interest payments. But the drawback is that the money you spend will be tied up until you sell the home.

Using financing for renovations

Many homeowners opt to finance their remodeling project — especially if they’re planning on selling shortly after finishing the project — as they’ll be able to pay the loan back in full after closing.

There are a few different ways to pay for your project, but note that most lenders require that your remaining mortgage balance plus the amount you borrow total less than 90% of your home’s pre-improvement value. For example, if you owe $270,000 on your $350,000 home, lenders would consider loaning you up to $45,000 ($315,000 is 90% of $350,000).

Here are two common financing options:

Second mortgage

Much like your first mortgage, a second mortgage allows you to borrow a fixed amount of cash, in a lump sum, with a fixed interest rate.

Home equity line of credit (HELOC)

A HELOC operates like a revolving credit line, secured by the equity in your home. You borrow what you need as you go, but you’re borrowing with a variable interest rate, so costs can go up (or down) over time.

What if I can’t afford home improvements before listing?

If your budget won’t allow you to complete any repairs or improvements before listing, you have three options:

Sell as-is: When you sell as-is, you make it clear to buyers that you won’t be making any repairs before closing. You’ll want to adjust your listing price to accommodate for that fact. Note that buyers may try to negotiate the price even lower, especially if the property is in bad shape.

Offer a credit at closing: If your buyer’s inspection uncovers any issues in the home, you can offer a credit to the buyer that will allow them to make the repairs after closing. Often, the credit the buyer requests ends up being higher than what the cost would have been if you had completed the repairs ahead of time.

Under construction

Under construction