Return on Your New York Apartment Renovation Investment

While getting the highest price is essential, selling the property quickly is also a valid consideration when deciding on renovations.

Renovating before selling your New York apartment can lead to a price increase, mainly because most buyers prefer to avoid time-consuming renovations. In addition, picking the right contractor and dealing with renovation permits is another stressful chapter. When deciding how much to renovate, consider whether to focus on the entire apartment or just the kitchen and/or bathrooms and determine the extent of the remodel. It's essential to avoid both under-renovating and over-renovating, as finding the right balance is crucial for maximizing returns. Understanding your market and weighing the potential gains against the cost of updates will help guide your renovation decisions.

How much return on your renovation investment should you expect when renovating an apartment in New York?

1. Hardwood Floor Replacement:

Replacing old hardwood floors is likely to yield a full return on investment (105% ROI), according to the National Association of Realtors (NAR). Buyers prefer properties with quality hardwood floors, making it a worthwhile renovation.

2. Kitchen Upgrade:

Minor kitchen upgrades in New York City statistically yield a higher return (up to 76%) compared to the national average (51%). Retaining the kitchen layout and making minor changes, such as refacing cabinets and updating hardware, can be cost-effective and appealing to buyers.

Major kitchen renovations can yield a return of 60% nationally. In New York City, midrange renovations (64%) tend to have a higher ROI than upscale renovations (52%).

3. Bathroom Renovation:

Bathroom renovations generally yield a return of 56% to 58%. Opting for midrange upgrades rather than upscale renovations can provide a better ROI, as personal taste may impact the appeal of luxurious designs.

4. Installing a Washer/Dryer:

Adding an in-unit washer and dryer can increase the value of a property, especially in New York City, where only about 25% of units have this amenity. While specific ROI data is unavailable, brokers suggest it may increase the value by up to 5%. However, it's essential to check with your coop or condo board for any restrictions.