Deciding what can add value to your property can be vexing. You can spend a lot of money on home improvements thinking they’ll add value to your home, but it won’t matter if the appraiser doesn’t agree. If you’re considering refinancing, you’ll want to know what improvements will create the biggest impact on the value of your home.
So how do you know what adds value? You don't have to do a big-ticket renovation. Below, we have some ideas homeowners can take advantage of to give their home value a boost.
How To Add Value To Your Home
There are a number of other home improvements you can make that will add significant value to your property. Here are a few worthwhile ideas to consider:
1. Freshen Up The Exterior
One of the first steps 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. Additionally, making larger changes, such as getting a new roof or redesigning your front porch, can also dramatically transform the appearance of your property for the better and increase its overall value.
2. Revamp The Interior
The appearance of your home’s interior is just as important as its exterior when it comes to home value. When a prospective buyer visits a property they’re interested in, they want to be able to envision themselves living in that space, so styling your home with tasteful decor that makes it feel both welcoming and put together will only serve to attract greater interest when it’s listed on the market.
On top of decor updates, completing renovations that require a bigger lift can also add significant value to the property. Remodeling your kitchen and updating your bathroom could yield a higher return on investment, because updated versions of these two spaces in a home can be a major selling point for interested buyers.
3. Update Your Home’s Technology
As time goes on, home technology systems tend to become more sophisticated. However, if your own property hasn’t quite reached “smart home” status, consider increasing the value of your home by replacing more outdated technology – such as your thermostat or your security system – with newer systems that will provide you and future buyers with an enhanced sense of safety and comfort.
4. Increase Your Home’s Energy Efficiency
Along with updating your home’s technology systems, focusing on improving the energy efficiency of your property 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. Some ideas for making your home smarter and more efficient include:
- Switching to LEDs or compact fluorescent lightbulbs
- Upgrading to energy-efficient appliances
- Adding solar panels to your roof
- Installing smart thermostats
- Updating your bathroom with WaterSense showerheads
5. Expand Your Square Footage
Square footage can have a dramatic impact on the value of a home too. In the United States, recent estimates put the median price per square foot around $123. Additionally, larger properties with more space often sell for a better price. To further boost the value of your property, consider some upgrades, such as:
- Adding a deck onto the back of your house
- Building extra rooms over the garage
- 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.
Additional Home Improvement Tips
Although each of the suggestions in this article may help to add value to your home, there are a few other things homeowners ought to keep in mind while trying to make improvements to their property.
Get Your Property Inspected
To increase your home’s value, it’s necessary to maintain the value your home already has before making additional improvements. Before considering whether to list your home, it’s wise to get a home inspection in order to make sure no underlying problems exist with the property. If you find that there are issues endangering the structural integrity and safety of the home, such as cracks in the house foundation or serious water damage, it’s essential to address them before performing any other renovations on your property.
Clean And Declutter Now
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 and decluttering to rid your home of any unwanted or unneeded possessions can 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.
Create A Realistic Financial Strategy
If you’re serious about making improvements to your property, it’s important to make sure the cost of completing home improvement projects isn’t more than the increase in your home’s value will be. Conduct thorough research before committing to major renovations to ensure that the projects you’ve decided on are financially worthwhile and will serve to boost the amount your home can be sold for in the future.
What’s more, it’s vital to finance your home improvement projects in a way that won’t break the bank. If the renovations you have in mind will significantly increase the value of your property but will deplete your savings, it might be necessary to explore other financing options, such as a cash-out refinance or another type of home improvement loan.
Why Should You Try To Increase Your Home’s Value?
If you’re debating whether to sell your house and would like to make as much money as possible from the sale, it may seem like a no-brainer to complete a few home improvement projects to 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.
Have more questions? Get in touch with one of our Home Loan Experts today!