10 Ways To Increase Home Value: A How-To Guide
If you’re thinking about selling your home now or in the future, you’re probably wondering what you can do to increase your home’s market value. Many homeowners spend a lot of money on home improvements thinking they’ll add value to their home, but it won’t matter if the appraiser doesn’t agree.
So how do you know what adds value? Luckily, we have some ideas you can take advantage of to give your home’s value a boost. Here are a variety of tips for how to increase home value.
How To Increase Your Home’s Value: Consider Your Goals
Before you begin any home improvement projects, it’s important that you think about why you want to add value to your home. Consider your goals and think about where you want to see yourself and your family in 5, 10 and 20 years from now.
If you’re set on selling your home, you have two options: you can commit to home renovations or you can strategically stage your home to show off its best advantages. This is also known as staging for a quick sale, and occurs when a homeowner is preparing to sell their home without making major capital improvements.
Figuring out whether a renovation is “worth it” means finding the sweet spot between the costs, the return on your financial investment and the emotional returns of making your home your sanctuary.
How To Find Your Sweet Spot
When finding your sweet spot, you’ll take three major factors into consideration: your timeline, your market and your satisfaction in your home. We’ll walk you through each of these factors so you can get closer to determining the best ways to increase your home’s value.
First, your time frame can help you make your decision on whether you should begin a renovation. For example, if you are planning to stay in your home longer before selling, then more expensive projects like kitchen renovations may seem more worthwhile.
On the other hand, if you’re ready to sell your home in the current ongoing seller’s market, you may be able to bypass some renovations. In today’s current market, often buyers can’t afford to be too choosy about the condition of the home.
If you’re unsure about the current state of the real estate market, you can get a better idea of what you should do to your home by talking to a local real estate agent who specializes in listing homes for sale in your area. After speaking with an agent, you might learn that sellers don’t need to do much at all to appeal to buyers where they live.
Your Satisfaction In Your Home
Finally, it’s important to think about all of the intangible benefits of home renovations and how these emotional returns can be very beneficial for you and your family if you plan to be in your home for a while. Increases in home value should certainly inform your decision to renovate, but be sure that no renovations devalue the importance of creating a sanctuary at home.
At the end of the day, your home should be a safe and loving place, so it’s important it looks and feels that way too.
10 Ways To Increase Your Home Value
There are a number of home improvements you can make that will add significant value to your property. Here’s a how to guide for adding value to your home:
1. Clear Up Clutter
Before starting any home improvement projects, it can be helpful to make sure your home is in its best possible condition. Cleaning your living space from top to bottom dramatically improve its appearance and storage capacity as well as solve small problems that could’ve been detracting from your home’s value, such as bad smells or mold growth.
It’s important to declutter to increase the home’s appeal to sellers. If you’re planning to sell quickly, you should remove all the clutter or box it and store it neatly. If you’re planning to remain in the home, you might want to consider built-in cabinetry or closet renovations to increase storage.
2. Never Underestimate The Value Of A Fresh Coat Of Paint
If you want to give the interior of your home a facelift without spending a lot or committing to a timely renovation project, consider repainting the interior walls of your home. There are many immediate benefits of this low-cost option that can refresh the appearance of your home, especially if you’re preparing to list your home in the near future.
3. Get Energy-Efficient
Making your home more energy-efficient can help save you money as well as increase the value of your home. As with many of the other upgrades, these improvements can be made on a smaller scale or by making larger changes.
If you’re interested in making your home smarter and more energy-efficient, switch to LEDs or compact fluorescent lightbulbs or upgrade to energy-efficient appliances. Additionally, you can add residential solar panels to your roof, install smart thermostats or update your bathroom with low-flow showerheads.
4. Upgrade Your Exteriors
Another easy way to increase your home’s value is to boost its curb appeal. Adjustments like replacing the siding, adding a fresh coat of paint or landscaping can make a significant difference in the overall appearance of your home and in its ability to perform more favorably on the housing market.
Making larger changes, such as getting a new roof or redesigning your front porch, can also dramatically transform the appearance of your property and increase its overall value.
5. Get New Doors
Another simple way to level up the exterior of your home is by replacing your current doors. You can add curb appeal and increase energy efficiency by updating your front or garage doors. If your house is eye-catching from the outside, it will make more buyers to want to look inside.
6. Plant Some Flowers
Flowers are an easy, cost-effective way to make your home stand out. There are many benefits of doing simple landscaping to enhance curb appeal and show a home to its best advantage. The best part is that you can do it all without the help of a landscaper.
7. Finish Your Floors
If the interior of your home has noticeable wear and tear, it might be time to update some of the more worn-out areas of the home. Let’s start with the floors. If your current flooring has water damage or is uneven or noisy, it might be time for an upgrade. Whether you’re planning to sell your home or stay in it for a while longer, there’s immense value in refinishing or replacing your worn flooring.
8. Add Square Footage
Square footage can have a dramatic impact on the value of a home. It can also drastically improve your own experience in your home. If you currently live in a smaller home, you can add to your home’s existing value and create more space by putting on an addition to the existing structure.
Larger properties often sell for a better price. To boost the value of your property, consider adding a deck to the back of your house, building extra rooms over the garage or constructing a small guest house or office in your backyard.
Aside from expansions, increasing the amount of functional space within the existing structure of your home can make a noticeable difference in your home’s value. By finishing your basement or knocking down non-load-bearing walls to create a more open-concept living space, you can increase the amount of usable square footage in your home, thus increasing its overall value.
9. Redo Your Bathroom
If your budget and timeline are somewhat limited and you can only choose a few renovation or improvement projects, consider redoing your bathroom. A bathroom renovation can greatly enhance both the enjoyment of the home while you stay in it, as well as the future value of your home at resale.
10. Complete Kitchen Renovation
Finally, as you think about various home renovations and improvements, consider a complete kitchen renovation. Although this is a costly and invasive project, a kitchen renovation is the gold standard of home renovations. If you’re planning to sell your home now or in the near future, remember that buyers love to see a recently remodeled kitchen.
How Can I Pay For More Expensive Renovations?
If you’re interested in starting some of the previously mentioned renovations, you might wonder how you can afford them. Luckily, there are ways to pay for the more expensive home improvement project.
Additionally, as you prepare to sell your home, it’s important to know that capital improvements like kitchen or bathroom renovations increase a homeowner’s cost basis in the home, which may reduce or avoid capital gains taxes when the home is resold.
The Bottom Line: Trust Your Listing Agent’s Advice About Needed Renovations
If you’re debating whether to sell your house and would like to make as much money as possible from the sale, a few home improvement projects can increase your property’s market value.
However, doing things to add value to your home while you’re still living in it will also likely increase your own enjoyment of your property. So long as your desired improvements are financially viable, they can be hugely beneficial to your home’s overall longevity and people’s perception of its worth.
At the end of the day, the value of home improvements is emotional as well as financial and shouldn’t be ignored. If you’re ready to begin a home improvement project, apply online now for a cash-out refinance to get your renovation started.