Are you planning to renovate or sell your house in the near future? Whatever your goal is; making little improvements & upgrades definitely adds value to your home.
Though there are many other factors like local community, location, economy, etc. that affect the price of your property. But still, there are a few ways that can increase your home’s value with time.
Here, we’ll discuss some home improvement stats & strategies that’ll help homeowners build up equity in their homes and get a higher selling price.
Let’s explore how to influence the buyer’s choice while showcasing your home, particularly when they have many residential properties to consider.
#4 Steps to Boost Your Home Value:
Step 1: To Determine the Type of home improvement Required
The first step towards adding value to your home is to determine the type of improvement you need the most. Plan for renovations or remodeling that can quickly sell your home and give you a better return on investment.
Decide how long you are going to stay in the house.
Also Read: Home Renovation And Remodeling Trends For 2023
Case 1: If you want your house to sell quickly
All you need to do is to consult a real estate agent to sell your house quickly and a professional stager who can guide you with the improvements that can attract serious buyers. It includes:
- House Painting,
- Installing Energy-Efficient Devices,
- Upgrading Fixtures, Etc.
Case 2: If you are not planning to sell the house for the next 10 years
You can consider major improvements like installing solar panels, flooring, and remodeling the bathroom & kitchen. These major hauls will help you build equity in your home.
Step 2: Determine your Budget for home improvements
To start with, know how much you can afford to spend on home improvements or renovations to increase the value of your home. Do not overspend on your house upgradations or renovations.
Now create & categorize the list of must-have changes as per their cost, and the time they’ll consume. Opt for the project that fits your budget, comfort, and time frame. Focus on completing a single job rather than addressing everything at once to make it more doable.
How Much Will It Cost?
According to home decor experts, “ Some home improvement projects can be expensive whereas others are relatively inexpensive.” The cost of an improvement project depends on its scope, the type of materials used, the complexity of the job, and its location. Below is a rough estimate of common home improvement projects in the United States. So, expect to spend on:
- Kitchen remodel: $25,000-$50,000
- Bathroom remodel: $10,000-$20,000
- Flooring installation: $1,500-$5,000
- Roof replacement: $5,000-$10,000
- Window replacement: $5,000-$10,000
- Exterior painting: $2,500-$5,000
- Deck or patio installation: $3,000-$15,000
Important: To get a better idea of the cost of a specific home improvement project, we suggest getting multiple quotes from reputed contractors
How can you Pay For Renovations?
Though there are multiple ways to pay for renovations or home additions, still, ensure you have sufficient funds in your account to get the job done. Rest, it also depends on your present financial situation, and the scope of the project. Check below some of the best options:
If you have savings or can afford to pay for the renovations outright, then cash on hand is probably the best option for you. It can save you from paying huge interest rates and taking on debts.
Home Equity Loan
With such loans, you can borrow money against your home’s equity. Plus, you’ll get a handsome amount of money that can be easily paid off in easy monthly payments with interest over a fixed time period.
Home Equity Line of Credit (HELOC)
It’s almost similar to a home equity loan, the only difference is you’ll be given access to a line of credit that can be drawn when needed. The benefit is you’ll have to pay interest only on the borrowed amount. Plus, you are allowed to use the money for multiple projects as and when required.
As compared to other loan options; it’s an unsecured loan that can be used for any of your personal use or home renovations. You’ll have to clear the debts with interest in monthly installments throughout the entire loan duration.
Interest rates are usually higher on money borrowed for home improvement projects. We suggest choosing credit cards that offer low-interest rate. So, you can easily & quickly pay off your debts.
Which Is the best option?
According to loan experts, cash-out refinance is the best possible option as compared to a personal loan. Personal loans are ideal when you do not want to make any adjustments to your present mortgage. Whereas, the cash-out refinance option offers lower interest rates for your original mortgage. If you need any help, the loan experts at US Mortgage can help you choose the best loan option for your specific project.
Step 3: Select your Home Improvement Project
After you have planned your budget and prepared the list of projects you want to work on; the next step is to pick the project of top priority.
Here is the list of some worth spending for home improvement projects that gives a higher ROI, and increases the value of your home.
1. Improve curb appeal
It’s important to work on the interior as well as the external appearance of your home to attract buyers and increase your home value. It includes
- Maintaining the lawn
- Landscaping; According to the home experts; the touch-up may cost you around $6000. Rest it depends on the size of your yard.
- House painting will cost you around $1000 to $3000 per square foot.
2. Upgrade the kitchen
Who doesn’t love modern-concept kitchens fitted with advanced appliances? The kitchen is one of the most important rooms that are worth making improvements. According to the estimates by NAR, an average kitchen upgrade costs you around $40,000. Whereas the full kitchen remodeling costs about $70,000. You can consider updating:
- Repainting walls & cabinets.
- Formica Countertops with Granite countertops.
- Broken or old-age appliances with the latest energy-certified devices.
Did you know? As per the Consumer Reports, making improvements in the kitchen of even $5,000 increases ROI up to 7%.
3. Renovate bathrooms
Bathroom renovations can be an expensive and time-consuming project, but trust us the end result is all worth it. So make a plan ahead, create a budget, and hire the professionals for a successful renovation. To give a refreshing & new look to your bathroom; you can
- Complete the plumbing & electrical work
- Install new WaterSense fixtures such as shower, sink, toilet, bathtub, etc.
- Install new cabinets and countertops.
- Replace the old floors with durable & water-resistant flooring
- Paint walls with neutral & moisture-resistant paint.
- Finish touches like towel racks, shower curtains, and artwork.
According to the NAR reports, you can expect to spend around $35,000, but this renovation will give you a recovery of 57% when you sell the house.
4. Add a room
To add value to your property, you can consider adding a bedroom, bathroom, or home office if you are planning to stay in the house for another 10 years. An additional room can significantly get you a higher selling price.
5. Upgrade flooring
Think from a buyer’s point of view! If your home still has that old-aged and cracked floor; why would they invest in a property that requires new flooring? Hence, if you want to earn a higher selling price, upgrade your flooring to hardwood, tile, or luxury vinyl plank to make a good impression on the buyer.
6. Energy-efficient upgrades
The lower energy consumption in a house is one of the major factors that grab the buyer’s attention. To reduce utility bills and increase your home value, it’s best to upgrade your house with energy-efficient features such as (suggested by home advisors):
- Energy star certified windows; the cost-effective way to lower bills by up to 12%.
- Insulation, and
- Solar Panels not only reduces power consumption but also helps you earn credits by giving energy to authorized
Note: Get your home analyzed by hiring a home energy auditor professional that will cost you around $350-$400. They can easily recognize the energy insufficiencies
7. Make repairs
Fixing any issues with the home, such as leaky roofs, plumbing, or electrical issues, can make your home more attractive to buyers and increase its value.
8. Increase storage space
Incorporating extra storage space in your home keeps your home stylish and comfortable. For example, you can add:
- Built-in shelves
- Under-bed storage
- Building multi-purpose rooms, and
- Leveraging vertical space.
These changes will distinguish your home from other comparable properties.
Step 4: Make & Implement the Plan
Once you’ve decided on the sort of project, budget, and real estate agent, it’s time to put your plan into action. Determine whether or whether you require expert assistance. It’s a great idea if you believe you can handle the DIY project and have the necessary abilities.
We recommend looking around for local contractors to ensure they have the ability and expertise to complete the task. Request them to demonstrate their work experience for similar projects. The final step is to create a timetable and a timeframe. As a result, you will be able to manage and complete the project on schedule.
FAQs about increasing your home’s value
Is it worth spending money to improve a home’s value?
Yes, a little investment made for improvements can help gain potential buyers if you are planning to sell your house. Plus, it’ll increase the overall price of your house.
What are some affordable ways to increase my home’s value?
Some of the effective ways to increase your home’s value while staying within budget are decluttering and deep cleaning, house painting, landscaping, and adding curb appeal.
What home improvements give the highest ROI?
Renovations made in Kitchen and bathroom renovations, adding square footage, constructing a new room, or finishing a basement definitely help get a better return on investment.
What mistakes to avoid when trying to increase my home’s value?
Never ever overspend on home improvements, ignore curb appeal, and make essential renovations & repairs before selling your home.
How much can I expect to increase my home’s value with home improvements?
Well, it depends on several other factors including your location, the overall condition of the house, the type of improvements, and the local real estate market.
Is it better to hire a professional for home improvements?
An experienced professional thoroughly inspects your house and ensures the safety and proper installation. Rest it depends on your budget and the type of improvement required.
Want to get a higher ROI on Renovations?
As mentioned in this article, there are several strategies to raise the value of your home. The sort of remodeling or renovation you should choose depends on whether you expect to stay in your house for the next ten years or if you want to sell it soon. Consult our local real estate agent for the finest information on how to pick and pay for renovations.