As a homeowner, it’s only natural to want to increase your home value. Owning a home is one of the biggest financial decisions people make. Before making any major choices about how to raise your home value, consider whether it’ll bring you a high return on investment (ROI).
1. Which Home Improvements Add Value to a House?
Before starting a home improvement project, ask yourself if it'll maximize your ROI if you plan on selling your house. According to a recent cost vs. value report from Remodeling.com, most home improvement projects can add some value to your home. Every improvement adds a different level of value depending on your end goal.
As a potential seller, avoid large-scale projects like kitchen and master suite remodels. Consider projects like replacing siding, front doors, and landscaping. They’re less expensive and have an immediate increase in home value. If you're willing to spend more money, a roof replacement has shown to bring homeowners 68% of their investment back.
2. How Can I Increase the Value of my House?
Keeping up with repairs and making smart improvements have proven to increase home value. The first place to start is making the house appear more attractive, otherwise known as curb appeal. Make sure existing landscaping is well maintained. If your yard seems dull, consider planting flowers or repainting the front door.
Once the exterior looks good, focus on the kitchen and bathroom. By leaving these two main rooms outdated, you can prevent a property from reaching its highest valuation. Concentrate efforts on minor fixes like new flooring and updated fixtures in the bathroom. For the kitchen, refinished cabinets, new flooring, and modern appliances can go a long way.
Consider making improvements to major components like the furnace, water heater, or roof. Buyers appreciate not having to worry about these types of repairs, and it can help you get a higher price for the house.
If you have the means to do so, adding square footage to your home has a huge impact on value. Price per square foot is one way that clients compare homes similar in style and finishes. Some ways to do this are constructing an addition, or creating additional living space by finishing a basement or attic. Check local ordinances for what you can include in your home’s square footage and any permits you need for construction..
3. How Much Do Renovations Increase Home Value?
The return on investment of any renovation projects depends on the local market, condition of the real estate market at the time of sale, and quality of work performed. Therefore, there is no real number that represents how much a renovation can increase home value.
However, certain projects like adding a wood deck and replacing windows have a high return on investment, regardless of location or the market. The National Association of Realtors states new siding, kitchen renovations, and new windows are some of the most beneficial projects, often recouping 80% or more of costs during resale.
Consider working with an experienced real estate agent who has local knowledge. They can give you data regarding buyer preferences in your location and make recommendations on renovations.
4. How Do I Increase the Value of my Home Before Selling?
Before selling, determine what requires repairs or upgrades. You can get ahead and hire a home inspector to get an exact answer. Then make a list of what is the top priority and research what projects fit in your budget. Your inspector and real estate agent can offer guidance, tailored to your local market.
5. How Can I Increase the Value of my Home at a Low Cost?
Not every homeowner has the budget for large-scale renovations. A great place to increase your home value is power washing outdoor spaces. Over time, mold, grime, dust, and dirt can build on these surfaces, making them look rundown. A quality power washing job can last almost two years and it costs as little as $100 to buy a power washer yourself.
Repainting is one of the cheaper home improvements that add the most value to your house. You'll want to repaint rooms in a neutral color to allow potential buyers to view your home as a blank canvas.
Consider replacing or updating internal light fixtures. If your budget allows, add energy-efficient lighting to appeal to buyers looking for a cheaper energy bill.
6. What Increases Home Value?
Increasing a home's value includes more than replacing a few appliances. There are many ways to increase home value yourself, all at different price points. Renovations and repairs are the best ways to increase home value, but some external factors play a heavy role.
These factors include the price of homes around you (otherwise known as comparative market analysis), location, home size, age and condition, and economic indicators. Most of these can't be changed, meaning sellers are at the will of their local market and economy.
7. What is the Best Home Improvement to Increase Home Value?
The best home improvement projects aren't the most expensive. Painting, landscaping, and general replacements have a reputation for their return on investment. Look at the interior and exterior of your home to determine what needs of a facelift.
Work With Clever
Before starting a home improvement project or making repairs to increase your home value, consult an expert. A real estate agent is an invaluable resource when learning about this topic.
If you have yet to find a realtor, consider working with Clever. You'll get matched with a Partner Agent who can lead you in the right direction on home improvement projects to increase home value. They also have knowledge of the local market to determine if it will influence your home's value.