As you make choices to add upgrades or changes to your home, there is a fine line between additions that improve your real estate value and other things that are little more than a personal investment that won’t do much to give you any real returns.
Knowing the difference between adding real value to your home as opposed to adding perceived value makes a huge impact on where you decide to make your changes.
Below, you’re going to find a list of suggestions that can work either way depending on your personal preference.
8 Different Ways to Improve Your Home Value
In making these decisions, you need to start by looking around at the market value of homes in your area as well as the value of your own home. You may also want practical ideas that will improve your home value quickly up front as well as for the long-term.
1. The Greatest ROI in Real Estate Value
According to Forbes, “millennial homeowners are now twice as likely as baby boomers to tackle kitchen and bathroom remodels.” That is a significant claim to make, but there is a good reason. There is a perception that these updates have the largest impact on home resale value compared to other renovation opportunities.
Kitchens are especially great because you can update with modern appliances that all match, making everything look updated relatively quickly. Cabinets are also easy to update thanks to DIY kits that exist now, and they make your kitchen makeover look complete.
Bathrooms are easy to update, too, and can be done inexpensively to update the feel by changing a toilet or upgrading a lighting fixture. These simple changes can give your bathroom a whole different impression to a potential buyer.
2. Curb Appeal is Appealing for a Reason
Everyone likes a pretty house. Healthy lawns, brightly-colored flowers, and well-trimmed trees make your home look aesthetically pleasing. Let’s face it. Buying a home is a very emotional experience, and having a good first impression can make or break a sale.
Landscaping with native plants can also improve your real estate value with a quickness. It shows that you’re in tune with your area around you and that you are concerned about improving monthly expenses like watering. Prospective home-buyers will appreciate that.
You don’t want to do anything like add synthetic plants or turf because not only does that decrease your home value, it can also hurt the environment. You may also want to steer clear of putting down a bunch of rocks and gravel in place of a lawn, also known as xeriscaping because unless it’s native, it can cause more damage than improvement.
3. Floor Plan Modifications
Yes, you, too, can change your floor plan and have a significant impact on your home value. If you purchase an older home and you want to open up the space, you might be able to take down a wall to create a more open feel.
Alternatively, if you have a large space that feels empty, you may be able to add a wall and create another room like a bedroom or an office space. Just like that, your four-bedroom house could become a five-bedroom house.
Another thing you can consider is adding outdoor space like a deck or a patio. Living space is a premium commodity, and home buyers will appreciate the possibilities of having space like that. If you have a basement, you can finish it and create yet another living space.
4. Clean Your House
One of the biggest turn-offs for prospective home-buyers is to walk into a messy home. If your house is attractive and sparkling clean, it will make a better impression on your buyer. Keeping your house clean does wonderful things for the perceived value of your home.
Cleaning includes keeping up with any problems that pop up as well as decluttering. Dirt gathers in corners, and stuff tends to cluster, too. Clean out your things for your benefit as well because when the time comes, you’ll be ready to show your house.
5. Selling vs. Upgrading
You also need to think about whether or not you’re in the mood to upgrade for yourself or to prepare your home to sell it. Understanding how the value works in upgrading or improving your home makes a difference in deciding what the purpose is behind your decision. If you intend to sell, ask a realtor to give you suggestions like replacing carpets or appliances to increase your home value. Assuming you follow the suggestions made by the realtor, total up the selling price minus the cost of upgrades and modifications to see if your return will be worth the work.
Should you decide that you’re staying and looking for renovating for personal reasons, you have more freedom to work within creating what you want. You will still need to stop and consider your budget to come up with realistic guidelines, but you may be able to take more time to make it happen.
6. Hiring a Private Home Inspector
This is one of those tips to increase your real estate value that you probably haven’t thought about. Think about what certified home inspectors do. They check the house for issues and to certify that the home is in good order.
Have you ever considered getting your house checked up regularly? Having records that show you meticulously had your house checked on a regular basis can do wonders for increasing your home value. It shows prospective buyers that you have kept up with your home for the time that you’ve owned it and can make them feel better about offering a higher price.
7. Larger Renovations
There are some major renovations that can raise your home value, but just how much depends on what needs to be done, your selling price point, and how much you’ll get back in return. As an example, you could update your home’s systems like your central a/c or gas furnaces if you have them.
Another significant upgrade that can add value to your home is the flooring. If you have carpeting, consider replacing it with a more durable flooring material like hardwood laminate or possibly an engineered wood flooring. They look good and can raise your value between three and five percent.
You can also put on a new roof. You don’t have to wait for your roof to need replacing, and having a new roof makes home buyers feel better about not having to deal with that kind of expense in the near future.
8. Smart Tech is Not Always an Attractive Upgrade
Some smart tech is a good thing, but too much can actually cause a decline in value. It’s a double-edged sword. The key is to find the right smart devices to add. You want them to be temporary where possible because technology evolves so quickly.
Suggestions for additions to a home include things like a Nest thermostat. They look high-tech and give the feel that this home embraces technology. Having additions like the Ring doorbell do the same thing, and they can be changed as technology evolves.
Raising the Real Estate Value of Your Home
There are several different things in play when you’re deciding how to raise the value of your home. Do you want to raise the value to sell it? Are you doing it for yourself? What is your ultimate goal?
You have to be able to answer those questions to figure out what you need to do. It’s one thing to invest in a home that is your “forever” home and another entirely to invest in a home that you know you’re going to sell. Some research and elbow grease could be all you need to increase your home value. Remember, even minor upgrades like faucets, and light fixtures can fix raise your home value. A paint job in a high-traffic area can also improve the overall appeal. Doing some light work on the outside is the extra icing on the proverbial cake to raise your overall real estate value. Do it right, and you’ll be happy with the outcome.