In this post: Do you want to know the 10 best ways to increase the value of your home? We’ll discuss some great methods around how you can maximize the worth of your property–whether you’re planning on selling or not!
This article is great for homeowners interested in either selling their property or for those hoping to invest wisely.
The Importance of Property Value
Knowing your property value is not just important when you want to sell your house. If you are thinking about updating your home, you may want to know your property value first! Why? Because if your home is already at the higher end of your market average, then updating your home may not be worth the investment. You never want your house to be the most expensive in your area, as future buyers are unlikely to afford it. The rule of thumb is to evaluate the value of homes within your area and make sure your home value is within 10% of that number. However, after reviewing homes in your area, if you realize that your home is well below the market price— then some updates might be worth the time and investment!
There is a saying that goes: A house is only worth how much someone is willing to pay for it. Essentially, the saying means that regardless of your property value, some superficial qualities make a home more desirable than others. Therefore, there are some updates on a home that potential buyers can actually see as worth a higher price tag. According to a survey by NerdWallet, Nearly three-quarters (73%) of Americans say knowing the value of their home helps paint a picture of their overall financial health.
So let’s get to it! Here are the:
Top 10 ways you can increase the value of your home:
1. Major Home Renovation
This is probably one of the more obvious things that homeowners can do to their homes. Of course, this will depend on many factors, such as how much money you have for renovations and how long you plan on staying in your home. If only a few small updates are needed, then you might not want to consider a major renovation. If, however, updating your kitchen is what will sell your home—then this may be the best option for you! The costs of renovations can easily add up, and some homeowners still find themselves with financially difficult decisions to make. If you decide to go with a major renovation, it’s important to maintain your property value by staying within the current market average.
How You Can Make It Work: Here are some time-saving tips for organizing your project: Organize your home and remove any items that you no longer need or use. This will help you create space and will allow you to move around more freely. Consider hiring professionals for certain updates. For example, if you’re not very good with a hammer or a saw, consider hiring someone to do the home renovations in exchange that they receive a percentage of the final sale price of your property. Choose updates that make sense financially. If you can only afford to do one or two updates, make sure they are worth it! For example, a complete kitchen renovation might not be the best option for you if you only plan to stay in your home for a few more years. In this case, kitchen decorating and little redecorating can go a long way in increasing the value of your home.
This is probably one of the most inexpensive updates that you can make to your home! Painting is an easy way to update and redecorate a room—without needing to do much else! The fresh paint will cover up any chips or scratches in the walls, boosting the appeal of your property. New lighting, accessories, and furniture can finish a room nicely enough. According to OpenDoor, ” Painting the interior costs on average $967, and offers a $2,001 increase in value. Painting the exterior costs $1,406 and results in a $2,176 increase in value.” That means a new coat of interior or exterior paint is anywhere between a 55-107% return on investment (ROI). If you really want to increase the value of your home, then this is an easy and absolutely worthwhile investment!
Pro-Tip: If you are going to use multiple cans of paint for a project, you can save money and improve color consistency by boxing your paint; a strategy for paint storage.
3. Spend Money to Save Money
The value of your home will improve if it is seen as energy efficient. The US Energy Information Administration, in 2018, determined that the average electricity bill in the United States was $117.65. If you want to increase the value of your home, then you should start by decreasing its monthly costs. The Department of Energy even states that energy-efficient homes can save over $2K a year! So, by making your home more cost-effective, you also improve its property value. A few energy-efficient investments include:
- A ceiling fan can reduce your cooling costs by up to 40%. Ceiling fans cost between $50 and $150.
- Energy-efficient windows in the southern region of your home should be tinted. In some cases, double-paned is better! According to Energy Savers, window replacement costs an average of $4 per square foot and increases the value of your home by $1,000!
- Replace high-efficiency appliances with Energy Star appliances. The EPA says that the average dishwasher is $150 but will save you 6KW of energy per year!
- Look for ways to seal any drafts in your home. According to Energy Savers, sealing an air hole or draft can improve the comfort of your home by 15%! There are many DIY methods available which include ca
4. Change Lightbulbs to LED
Yes, LED lightbulbs are also an energy-efficient update, but this is so affordable that it is a must for every home! Each LED lightbulb you use can save an average of $170 in its lifetime. Also, the bright natural light of LED lightbulbs is great at making homes look better in darker settings. Even Richmond American states how LED lightbulbs can improve the likelihood of you selling your home! Also, staying on top of lightbulb changes will improve the value of your home and keep it up-to-date! Replace all regular lightbulbs with LED. In the long-term, this will save you hundreds of dollars on energy bills and create a more modern design.
5. Install Low-Flow Shower Heads
Upgrading your shower head to a low-flow version can save you up to $36 per year! Besides saving money, upgrading to the latest water-saving technology is an investment. If recent studies and trends are anything to go by, then investing in future technology will always pay off! According to Environmental Protection Agency (EPA), “The average lifetime of a showerhead is approximately 10 years… A low-flow showerhead can reduce water consumption by more than 50%.” The EPA also says that a low-flow showerhead will, within 2 months, pay for itself with money savings on your monthly energy bill!
6. Repair Leaks in Your Home and Seal HVAC Vents
Leaky faucets waste an average of $150 per year. Simple fixes to seal drafts around windows, doors, and air vents can improve the value of your home. Investing in weather stripping for your windows can also keep energy costs down, which will indirectly improve the value of your house. Additionally, sealing a leaky HVAC vent can save you up to $3,000 over the next decade! Keep your HVAC system in top condition. More specifically, you should have a pro inspect it and make any necessary repairs annually. Not only will this save money on your monthly energy bill, but also you can reap the rewards by increasing the value of your home!
Tip: a higher quality air filter may trap more harmful particles, but it places additional strain on your HVAC system. Instead, you can save money by purchasing a mid-grade air filter and replacing it more frequently. Usually, replacing an average air filter every two months is $60-$100 less than its premium counterpart.
7. Add Central Air Conditioning
Adding central air conditioning to your home can add $5K to the value of your house. According to the US Government, “58 percent of U.S. households have AC — up from 53 percent in 2009,” and the number is only increasing. Also, it has been shown that homes with AC sell faster than those without! So, if you are planning on selling your home soon or already own an older home without AC, consider adding an air conditioning system.
8. Create a Smart Home
Coldwell Banker had a survey trying to determine how important prospective homebuyers found smart home technology as important. In the survey, 44 percent said that smart home technology should already be installed in a home that they were looking to buy, and another 57 percent would consider an older home updated if it had smart home technology. Therefore, one of the best ways to increase the value of your home is to make sure your home has all the latest updates. For example, a programmable thermostat is a great way to make your home efficient but also modern. When I sold my first home, my real estate agent mentioned how many homebuyers liked the Nest thermostats around the house. Nest saved my home 13% in heating bills and 18% in cooling bills each year! So, my home benefitted by installing a programmable thermostat, and the value of my home increased when I was ready to sell it.
Smart Home + Energy-Efficiency Pack:
There is nothing better than saving money while improving your property value!
9. Add a Carport or Addition
To increase the value of your home, you have to consider not just the inside of your house but also its appearance. According to Zillow, “The median home value increased by $13,130 following an addition and by $6,835 after a carport was added.” And according to Remodeling Magazine, ‘the most popular type of remodeling completed last year was an addition, which gained 22% in value when complete.” Adding a carport or adding on to your home is an investment that will pay off.
10: Re-do Your Fireplace
A fireplace can increase the value of a home by over $5,000. In fact, according to Redfin, “Fireplaces are the most expensive upgrade in terms of dollar return on investment.” Nearly 50% of buyers choose fireplaces as an important feature for their dream home. So take a weekend to redo your fireplace, and you will be glad you did!
Spend Less & Make More
There are many ways to make your home more valuable, but not all investments have the same result. We hope that the 10 projects we shared with you will help when it’s time to sell your house! Some of these options may be more cost-effective than others, so think about what is most important to you and how much money you want to invest in improving before deciding which project to take on first. This list has been compiled with both short-term and long-term goals in mind; if you don’t have any immediate plans for selling or renting out your property, then there’s no need to rush into updates like landscaping or painting! But if those things matter to you and you want to make a difference in the way your home looks, then, by all means, add those projects into your schedule. And always be sure to get at least two estimations before getting any work done – there are so many variables that could affect the price of these upgrades!