Are you looking to learn how to increase the value of your house?
There are several proven ways to boost your home’s worth, and they don’t have to cost a fortune.
In this comprehensive guide, we’ll explore eight effective methods to substantially enhance your property’s value, from curb appeal to energy efficiency upgrades. Ready to take the plunge? Let’s dive in!
- Enhance curb appeal, landscaping, and exterior paint to increase home value.
- Increase living space through finishing basements, converting attics & building additions.
- Update key rooms with cost-effective changes & consider financing options such as personal loans or cash out refinances.
Enhance Curb Appeal
First impressions matter, especially in the world of real estate. An attractive exterior can make or break a sale, as it contributes up to 7 percent of your home’s value. To entice prospective buyers, a real estate agent would recommend focusing on boosting your curb appeal with landscaping, exterior paint, and front door upgrades.
According to the National Association of Realtors, features such as a paved driveway, hardwood floors, and energy-efficient appliances are particularly appealing to buyers nearing retirement and millennials alike. So, what are some affordable ways to enhance your curb appeal?
A well-groomed yard can significantly improve your home’s value and attract potential buyers. Maintaining your yard is a smart investment. $340 in basic care such as grass cutting, fertilizing, and weed control can yield a 539% return on investment. To elevate your landscaping, consider introducing vibrant blooms, grooming the lawn regularly, and pruning trees.
If your neighbors have laid fresh sod, it may be wise to follow suit. With an 83% cost recovery rate for a landscape upgrade, there’s no reason not to invest in your outdoor space.
A fresh coat of paint on your home’s exterior can work wonders for its overall appearance and resale value. In fact, HomeLight’s top agent survey suggests that a new coat of exterior paint can add over $7,500 in resale value. The average cost of painting the exterior of a house is around $3,048, which is a small price to pay for such a significant return.
When choosing colors, consider the most preferred shades for front doors, such as white (24%) and brown (17%), as noted by the NAHB survey. For a farmhouse look, try Benjamin Moore’s Deep River, a dark gray paint with blue undertones, or Caviar by Sherwin-Williams for a near-black hue that adds drama and depth.
Front Door Upgrade
An inviting front door can make a lasting impression on potential buyers and significantly improve your home’s curb appeal. Replacing a garage door can yield a 133% return on investment, with an average cost of $1,200 and a resale value increase of $2,797.
Upgrading to a steel front door can also be advantageous, with a return on investment ranging from 65% to 91%. Steel front doors offer energy efficiency, minimal upkeep, and cold-blocking capabilities, making them an attractive option for any home.
Increase Living Space
Expanding your home’s square footage is another surefire way to increase its value. Options such as finishing basements, converting attics, and building additions can make your property more appealing to potential buyers.
However, it’s essential to consider the increased maintenance and utility bills that may come with additional square footage. With homebuyers typically seeking a median of 2,022 square feet, which is approximately 8% larger than their current residences, adding extra living space in terms of square foot is a worthy investment.
Finishing a basement can add substantial living space to your residence, enhance the value of your home, and provide an excellent setting for entertaining. To make the most of your basement, consider the following:
- Prioritize lighting to create a bright and inviting space.
- Select warm and light-reflecting flooring to make the area feel more spacious.
- Take advantage of natural light by adding windows or skylights.
- Install a built-in dehumidifier to control moisture levels.
- Consider adding egress windows for safety and emergency exits.
- Include a bathroom for added convenience.
- Install stair lights for increased safety and visibility.
By following these tips, you can transform your basement into a functional and enjoyable space. As for the design, some of the best options include a home theater, a new living room, a home office, or an apartment suite.
Transforming an attic into a functional living space, such as a bedroom or home office, can significantly increase your property’s value. A roof light loft conversion is the most straightforward and budget-friendly type of attic conversion. Before embarking on this project, ensure your attic meets the required criteria, such as minimum usable floor area and window area.
While planning permission is typically not required, it may be necessary if certain limits and conditions are exceeded.
Building home additions, such as sunrooms or extra bedrooms, can further enhance your property’s value by adding additional living space and enlarging the square footage. Some effective ideas for constructing additions include:
- Adding a second story
- Building a room on top of the garage
- Attempting a modular addition
- Constructing a dormer
- Finishing the basement
- Extending the kitchen
- Adding a laundry room or garden space
The estimated value of an accessory dwelling unit (ADU) increased from $47,600 before the pandemic to $66,000 by the end of 2021, making it a worthwhile investment of a few thousand dollars.
Update Key Rooms
Kitchens and bathrooms are often considered the most important rooms in a house by potential buyers, making them prime targets for updates. Simple changes, such as installing new countertops, cabinets, and appliances, can significantly increase your home’s value. Additionally, replacing fixtures in the kitchen and bathrooms can create a cohesive, modern aesthetic that is very attractive to potential buyers.
So, how can you effectively update these essential spaces without breaking the bank?
There are a few cost-effective ways to update your kitchen and bathrooms. For example,
For a cost-effective kitchen update, consider coordinating appliances and installing modern hardware on cabinets. Installing granite countertops is another affordable option, with a national average cost of $3,250, which is just a few hundred dollars more than some other alternatives.
A minor kitchen remodel can yield an impressive 71% return on investment, making it a wise decision for homeowners looking to increase their property’s value. Before embarking on a kitchen remodeling project, consult with an interior design or real estate professional to gain insight into which features will increase your home’s marketability and value.
Bathroom improvements don’t have to be expensive to be effective. A fresh coat of paint, new fixtures, and updated tile can make a significant impact on your home’s value. A midrange bathroom remodel can yield a 70% return on investment, making it a smart choice for homeowners looking to maximize their property’s value.
If you’re on a tight budget, consider a minor bathroom remodel with a return on investment of approximately 60%. With a little creativity and effort, you can transform your bathroom into a luxurious retreat that appeals to future buyers.
Energy Efficiency Upgrades
Energy efficiency is a growing concern for many homeowners, and making energy-efficient upgrades can greatly increase your home’s value. By installing a smart thermostat, replacing windows, and adding insulation, you can not only save money on energy bills, but also make your property more attractive to potential buyers.
Keep in mind that additional disposable income from energy savings can be used toward monthly mortgage payments, further increasing your property’s value.
So, how can you make your home more energy efficient?
Upgrading to energy-efficient windows can reduce your home’s energy costs by up to 12%. Low-e coatings, triple-pane windows, and ENERGY STAR certified windows are all highly energy-efficient options, with the best choice depending on your home’s climate and location.
By installing energy-efficient windows, you can decrease utility bills, enhance your home’s value, and appeal to potential buyers who prioritize energy efficiency.
Proper insulation can significantly reduce energy expenses, boost your property’s value, and enhance the comfort of your home. Common insulation materials include fiberglass, cellulose, spray foam, and mineral wool, with spray foam insulation being the most energy-efficient option.
Ensure your home is well-insulated to reap the benefits of lower energy costs, increased property value, and a higher home value.
Installing a smart thermostat can offer several benefits.
- It can save you money on energy bills
- It can attract tech-savvy buyers
- It is a programmable device that automatically regulates your home’s temperature
- It can be managed remotely through a smartphone
- It can be programmed to adjust the temperature based on the time of day or weather conditions outside.
The Ecobee Smart Thermostat Premium and the Nest Learning Thermostat are both highly recommended for energy efficiency, with the potential to save up to 23% and $145 per year, respectively.
Outdoor Living Spaces
Outdoor living spaces are increasingly popular among homeowners, offering an extension of indoor living areas and increasing a property’s value. Features such as fire pits, outdoor fireplaces, and well-designed decks or patios can significantly enhance your home’s resale value. With a return on investment of up to 309% for curb appeal upgrades in the Northeast, investing in your outdoor space is a wise decision.
So, what can you do to create inviting outdoor living areas?
Decks and Patios
Creating inviting outdoor living areas with decks and patios can significantly increase your home’s value. A backyard deck can add approximately $7,000 in resale value, making it a worthwhile investment.
To make the most of your outdoor space, consider:
- Constructing a wooden deck
- Installing an outdoor kitchen
- Incorporating a fire pit
- Adding a pergola or extended roof overhang
- Enhancing the landscape
With a little creativity, you can transform your outdoor space into a beautiful extension of your home that future buyers will love.
Outdoor kitchens are a growing trend, with the potential to add an estimated $9,800 to your home’s value in the current market. To create a functional and attractive outdoor kitchen, consider incorporating features such as bars with sinks, grills, stainless steel appliances, and wood cabinetry. Additional ideas could include a poolside pizza oven, a backyard party pavilion, and a wood-fired outdoor pizza oven.
While the estimated cost of building an outdoor kitchen is approximately $13,180, you can reduce expenses by utilizing salvaged materials such as reclaimed wood or recycled stone and brick.
Low-maintenance features are a major selling point for many home buyers, as they provide convenience and peace of mind. Replacing major components, such as the furnace, water heater, or roof, and ensuring that the property is easy to clean and maintain can increase the value of your home.
Additionally, certain upgrades can reduce maintenance requirements, such as replacing high-maintenance items with low-maintenance alternatives.
So, how can you make your home more low maintenance and attractive to potential buyers?
Upgrading to energy-efficient appliances, installing low-maintenance flooring.
Upgrading to a more efficient HVAC system that requires less maintenance can be a significant selling point for potential buyers. Geothermal systems, for example, have fewer moving parts and are likely to require less maintenance, with a lifespan of up to 30 years.
Regular maintenance of your HVAC system is also essential to ensure it is running efficiently and safely, prolonging its lifespan and avoiding expensive repairs.
Choosing low-maintenance siding options, such as vinyl or fiber-cement, can make your home more appealing to potential buyers and increase its value. Vinyl and fiber-cement siding are both durable and require minimal upkeep, making them an attractive choice for homeowners looking to reduce maintenance costs.
Installing new fiber-cement or vinyl siding can yield an approximate return of 68%-69% of its cost at resale, making it a smart investment for your property.
Smart Home Technology
Smart home technology is a rapidly developing area of the home improvement industry, offering convenience, safety, and energy efficiency to homeowners. By incorporating devices such as:
- programmable thermostats
- security cameras
- video doorbells
- wireless home security systems
You can add value to your home and attract tech-savvy buyers.
In fact, individuals who self-identify as tech-savvy are more likely to invest in smart home technology to improve their quality of life and increase their property’s value.
So, what smart home technologies can you incorporate to enhance your home’s value?
Smart security systems, such as cameras and alarms, provide safety and peace of mind for homeowners, making them a highly sought-after feature among potential buyers. Top-rated home security systems for 2023 include:
- Cove Home Security
- Link Interactive
By investing in a smart security system, you can enhance the safety of your home and increase its value in the eyes of future buyers.
Smart thermostats and lighting systems can help homeowners save money on energy bills and increase property value by offering convenience and energy efficiency. The Ecobee Smart Thermostat Premium and the Nest Learning Thermostat, for example, can save up to 23% and $145 per year, respectively, on energy bills.
By incorporating smart energy management systems into your home, you can create a more efficient and eco-friendly living environment that appeals to potential buyers.
Financing Home Improvements
So, you’ve decided to invest in home improvements to increase your property’s value, but how can you finance these projects? There are several financing options available, such as personal loans, home equity loans, and cash-out refinances. To secure the most cost-effective loan for your project, compare the available options and consult with a real estate professional.
Let’s explore these financing options further.
Personal loans are unsecured financing options that can be utilized for a range of purposes, such as home renovations. The advantages of using a personal loan for home improvements include expeditious access to funds, adjustable repayment terms, and the ability to apply to numerous home improvement projects.
However, the potential downsides include the possibility of high interest rates, the requirement of having good credit, and the risk of taking on too much debt. Reputable lenders offering personal loans for home improvements include SoFi, LightStream, and Upgrade.
Home Equity Loans
Home equity loans are loans that are secured by the equity in your home, typically used to finance larger renovation projects. Fixed-rate home equity loans, home equity lines of credit (HELOCs), and cash-out refinancing are the most commonly used home equity loans for home improvement projects. The benefits of home equity loans include lower interest rates than other types of loans, potential tax deductions for the interest paid, and the ability to borrow larger sums of money.
However, potential drawbacks of home equity loans include:
- The possibility of foreclosure in the event of non-payment
- The possibility of a balloon payment at the conclusion of the loan
- The fact that the loan is secured by the equity in the borrower’s home.
A cash-out refinance is a refinance option that enables homeowners to access their home’s equity, providing funds for major renovations while securing a lower rate on their existing mortgage. FHA loans, VA loans, conventional loans, and jumbo loans are all suitable for cash-out refinances for home improvements.
With 52% of homeowners utilizing cash-out refinance for home improvements and repairs, this financing option is a popular choice for those looking to increase their property’s value.
There are numerous ways to increase your home’s value, from enhancing curb appeal and expanding living space to updating key rooms and incorporating energy-efficient upgrades.
By investing in these improvements, you can create a more appealing and comfortable living environment that will attract potential buyers and increase your property’s value. Remember, the key to a successful home improvement project lies in carefully planning and selecting the right upgrades for your specific needs and budget.
With a little effort and creativity, you can transform your home into a valuable asset that will pay off in the long run.
Frequently Asked Questions
What actually increases property value?
The basic economic principles of supply and demand can have a significant impact on property value. As the housing supply decreases or the demand for homes increases, creating an inventory shortage, home values tend to rise.
If there are more buyers than sellers, this can be particularly beneficial for those looking to increase their property’s value.
Do ceiling fans add value to your home?
Adding a ceiling fan can be an easy and cost-effective way to add value to your home. They can offer not only great aesthetic value, but also additional comfort by allowing you to regulate air flow in any room.
Additionally, ceiling fans are energy efficient, which can help reduce your energy costs. All of these factors make investing in ceiling fans a great way to increase the value of your home.
What makes property value decrease?
Property value can decrease due to market trends, natural disasters, and foreclosures in the area. These factors can all pose significant risks to potential buyers, leading to a lower overall value for the property.
It is important to be aware of these risks when considering any investment.
Which exterior home improvements yield the highest return on investment?
Investing in exterior improvements, such as landscaping, paint and door upgrades, is one of the best ways to maximize your return on investment for a home sale.
Making these improvements can help increase the value of your home and make it more attractive to potential buyers. It can also help to reduce the amount of time it takes to sell the home. By investing in exterior improvements, you can make improvements to your home.