How To Increase Home Value Before Selling: 10 Helpful Tips
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. Read on for a variety of tips on how to increase home value.
If you’re planning to sell your home, you’ll want to decide what kinds of renovations are “worth it.” That means finding the sweet spot between the costs to renovate versus the return on your financial investment when you sell your home.
As a home seller, you have two options:
- Stage for sale: If your home’s value is comparable to other homes in your area or it’s a seller’s market, you can stage for a quick sale, which usually occurs when a homeowner is preparing to sell their home without making major capital improvements.
- Improve to resell: If you’re in a buyer’s market, your home is distressed or its value is considerably lower than comparable properties in your area, you may need to commit to more involved home renovations or improvements to make your home more attractive to potential buyers.
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. To help you decide which ones will work best for you and your budget, here’s a list of options from the least to the most expensive.
1. Clean It Up
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 can dramatically improve its appearance. It may also help to solve small problems that could’ve been detracting from your home’s value, such as bad smells or mold growth.
If you’re planning to show your home in the near future, it may be worthwhile to invest in a professional cleaning service.
2. Clear Up Clutter
It’s important to declutter throughout the property to increase the home’s appeal to sellers, especially if you’re planning to sell soon. Yard sales, selling online or donating items that are taking up space can help. If you don’t want to get rid of items, box them and store them out of the way. You may even want to consider renting a storage unit if you have a lot of clutter.
3. Add A Fresh Coat Of Paint
If you want to give the interior of your home a facelift without spending a lot or committing to an expensive 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.
4. Upgrade Your Exteriors
Another easy way to increase your home’s value is to enhance curb appeal. Adjustments like replacing the siding, adding a fresh coat of paint or landscaping with new bushes and flowers can make a significant difference in the overall appearance of your home along with 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 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.
For small scale changes, consider switching to more energy efficient LED light bulbs and installing smart thermostats. You may even be able to get a home energy audit from your local utility company.
If you want to add more extensive changes, upgrading to energy-efficient appliances or adding residential solar panels can help take a bite out of future energy bills and make your home more attractive to potential buyers.
6. 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 want to look inside.
7. Refinish Your Floors
If your floors have noticeable wear and tear, it might be time to update them, or at least give them a fresh finish. Depending on the type of flooring that you currently have, refinishing your floors can improve their appearance enormously. If new flooring is needed, there are flooring solutions that may allow you to layer new flooring over your existing floors without breaking the bank.
8. Add Square Footage
Usable 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.
To boost the value of your property, consider:
- Adding an addition to your home
- Adding a deck to the back of your house
- Constructing a small guest house, home office or other functional space in your backyard
You can also increase the amount of functional space within your home by finishing your basement or knocking down non-load-bearing walls to create a more open-concept living space.
9. Redo Your Bathroom
If your budget and timeline are somewhat limited and you can only renovate one room in your house, 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. Renovate Your Kitchen
If you’re planning to sell your home now or in the near future, remember that buyers love to see a recently remodeled kitchen. Although this is a costly and invasive project, a kitchen renovation is the gold standard of home renovations and it may be possible to enhance the appearance and functionality of your kitchen with lower cost improvements like new cabinet facings and countertops.
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?
Additionally, as you prepare to sell your home, it’s helpful 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 sold.
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: Know How To Add Value To Your Home Before You Sell
If you’re ready to sell your home in the current ongoing seller’s market, you may be able to bypass some renovations. However, if you’d like to make as much money as possible from the sale, a few home improvement projects may increase your property’s market value, at least enough to make the sale more profitable.
If you’re ready to begin a home improvement project, apply online now for a cash-out refinance to get your renovation started.