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Do you want to know the best ways to increase the value of your home? Are you planning on selling your property, or do you simply want to make sure your home keeps its value? Regardless of the reason, this guide will cover some of the best ways that you can increase the value of your home!
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 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, there are some superficial qualities that make a home more desirable than others. Therefore, there are some updates on a home that can actually be seen by potential buyers 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.
#1: 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 and disability.
Change Lightbulbs to LED
Each LED lightbulb you use can save an an average of $170 in its lifetime. Also, the bright natural light of LED lightbulbs are great at making homes look better in darker settings. Even Richmond American states how LED lightbulbs can improve the liklihood of you selling your home!
Create a Smart Home
Codewell 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 of the 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.
There is nothing better than saving money while improving your property value!
Install Solar Panels
Mental Floss states, “The savings you earn by going solar can take anywhere from seven to 20 years to cover the initial cost. But the average savings after 20 years? A whopping $20,000.” I personally installed solar panels at my current house, and haven’t paid an electric bill in over 2 years. Actually, my savings in electricity is lower than the loan for the solar panels, so I am benefitting right away.
