How Much Does Exterior Paint Increase Resale Value?

When you're considering boosting your home's resale value, you might wonder how much a fresh coat of exterior paint can really add. Industry experts suggest it could increase your home's value by 2-5% and make it easier to sell your home. As you explore these factors, you'll find there's more to exterior painting than meets the eye, influencing not just aesthetics, but your return on investment.

5 Things to Know About Painting Your House Before Selling

• A well-executed exterior paint job can increase home resale value by 2-5%.
• Neutral colours are generally safe choices if your goal is to increase value.
• ROI for exterior painting ranges from 51% to 55%, making it a profitable investment.
• Professional-grade paint and services boost curb appeal and property value.
• Trendy colours and strategic timing may further enhance desirability but can also sacrifice "timeless" appeal.

How Much Value Does Exterior Paint Actually Add?

Homes with newly painted exteriors often see an increase in demand, enhancing the curb appeal and ultimately leading to a higher sale price. With home prices reaching averages between $650,00 and $680,000, painting the exterior could increase its value by approximately $13,620 to $34,050.

The exact increase depends on factors such as the quality of the paint job, colour choices, and the market's demand for well-maintained homes. Additionally, there may be diminishing returns for homes priced outside of the average, either above or below. The benefit of painting your home may not always be directly quantifiable because its impact goes beyond a straightforward increase in appraised value.

In a competitive or slow market, home sellers need every advantage to attract buyers. A freshly painted exterior enhances curb appeal, signalling that the property is well-maintained and move-in ready, which can make a strong first impression.

For the right buyers, this visual appeal could be the deciding factor between making an offer or moving on to another listing. In this sense, the true value lies in the appeal created for prospective buyers, potentially shortening time on the market and even leading to stronger offers.

Choosing the Right Colours: Give the Buyers What They Want

Selecting the right colours is essential for maximizing your home's resale value. Consider neutral colours like beige, gray, and white. These timeless options appeal to a broad audience and can increase home value. Neutral exterior paint colours create a clean and inviting look, which can greatly enhance curb appeal and attract potential buyers.

Regional preferences and architectural styles should also guide your decision. For instance, people designing homes in a waterfront area might benefit from lighter shades, while neighbourhoods in the city could favour more subdued tones. While bold colours might catch the eye, they often appeal to a niche market and could deter some buyers. Instead, use them for smaller details like a front door.

Quality vs. Cost: Strike the Right Balance

Just like when you're considering painting the inside of your home, it's important to invest in high-grade, professional paint. While this initial investment might seem steep, often ranging from $3,000 to $7,000, the returns can be well worth it when you decide to sell.

Lower-quality paint tends to fade and peel more rapidly, which diminishes curb appeal and requires more frequent repaints. Durable, long-lasting paint preserves your home's appearance and value over time, providing a superior return on investment.

Market Trends & Timing: Is Painting Your House Even Worth It?

Market activity dictates whether painting your home is worthwhile because the dynamics of supply and demand influence how much effort sellers need to put into making their home stand out.

When you need to make your home stand out in a competitive market, even small improvements like a fresh paint job can make a significant difference in attracting offers and possibly fetching a higher price. In a slow market, sellers must work harder to appeal to the few active buyers, making cosmetic upgrades like painting even more critical.

The inverse is also true: in a competitive market, buyers may be more willing to overlook minor issues like a dated exterior or less-than-perfect curb appeal, focusing instead on securing a home quickly. On the other hand, in a slow market, sellers are often constrained by what buyers are willing to pay, regardless of cosmetic upgrades.

Again, the value of painting is tied to how much it helps your home stand out and sell in the prevailing market conditions. If you're trying to sell your home quickly, have your real estate agent conduct a competitive market analysis and show you how painting may or may not make a difference.

Estimate Your Return on Investment & Decide For Yourself

To estimate the return on investment (ROI) before painting and selling your home, follow these steps:

1. Assess Current Home Value: Obtain a professional appraisal or compare similar properties (comps) in your area to understand your home's market value.

2. Get Painting Quotes: Request estimates from reputable painters to determine the cost of the project, including materials and labour.

3. Research Market Trends: Evaluate local real estate market conditions to see how much curb appeal improvements typically impact home sale prices. Speak with the agent selling your house for additional insights.

4. Calculate Potential Value Increase: Estimate the value boost a fresh paint job could provide. A general rule of thumb is a 2-5% increase in home value, but this varies with market conditions, neighbourhood, and quality of the work.

5. Subtract Costs: Subtract the cost of painting from the potential increase in value to determine the net ROI. For example, if painting costs $5,000 and it raises your home value by $15,000, the ROI is $10,000.

6. Consider Intangible Benefits: Factor in non-monetary benefits, such as reduced time on the market or attracting more competitive offers, which can indirectly increase the costs of selling your home and alter ROI.

A detailed cost-benefit analysis will help you decide if painting your home before selling is a sound investment.

Will You Paint the Outside of Your Home Before Selling?

When planning a fresh exterior paint job, be sure to consider the timing, cost, and quality of materials to avoid costly mistakes. While it may be a steep upfront investment, a quality paint job will have a higher chance of capturing the attention of buyers and selling faster. With proper planning, your exterior paint job could greatly increase your home's resale value, a strategic move could redefine your property's future.