Are you planning to renovate or sell your house in the near future? Whatever your goal is, making little improvements and 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, there are still a few ways that can increase your home’s value with time.
Here, we’ll discuss some home improvement stats and 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: 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.
Case 1: If you want your house to sell quickly
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:
- Landscaping
- House Painting
- Installing Energy-Efficient Devices
- Upgrading Fixtures
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 and 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 upgrades or renovations.
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:
- 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?
There are multiple ways to pay for renovations or home additions. Ensure you have sufficient funds to get the job done. Check below some of the best options:
- Cash: If you have savings or can afford to pay for the renovations outright, this is the best option as it saves you from paying interest rates.
- Home Equity Loan: Borrow money against your home’s equity and pay it off in monthly payments.
- HELOC (Home Equity Line of Credit): Similar to a home equity loan, but you’ll be given a line of credit to draw when needed.
- Personal Loan: Unsecured loan to be used for home renovations, cleared in monthly installments.
- Credit Cards: Best with low-interest rate cards to avoid high debts on home improvement projects.
According to loan experts, cash-out refinance is the best option as it offers lower interest rates compared to personal loans. If you need help, consult loan experts like US Mortgage to guide you through.
Step 3: Select Your Home Improvement Project
Once you’ve planned your budget, the next step is to pick a project that gives the highest ROI. Some of the worth-spending projects include:
- Improve curb appeal: Maintain the lawn, landscaping, and house painting to attract buyers.
- Upgrade the kitchen: Consider repainting walls, upgrading hardware, and replacing countertops and appliances.
- Renovate bathrooms: Install new fixtures, cabinets, and durable flooring for a refreshed look.
- Add a room: Adding bedrooms or a home office can increase your home value.
- Upgrade flooring: Invest in new hardwood, tile, or vinyl plank flooring.
- Energy-efficient upgrades: Install energy-efficient windows, doors, and solar panels to lower utility bills.
- Make repairs: Fix any leaks or electrical issues to improve the home’s condition.
- Increase storage space: Add built-in shelves, under-bed storage, or a garage to make your home stand out.
Step 4: Make & Implement the Plan
Once you’ve decided on your project, it’s time to implement your plan. Consider hiring local contractors with relevant experience, and create a timetable 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, improvements can help gain potential buyers and increase the overall price of your house.
What are some affordable ways to increase my home’s value?
Decluttering, house painting, landscaping, and adding curb appeal are affordable ways to increase your home’s value.
What home improvements give the highest ROI?
Kitchen and bathroom renovations, adding square footage, and finishing a basement give the highest ROI.
What mistakes should I avoid when trying to increase my home’s value?
Avoid overspending on improvements, ignoring curb appeal, and neglecting essential repairs.
How much can I expect to increase my home’s value with improvements?
The increase depends on factors like location, condition of the house, and the type of improvements.
Is it better to hire a professional for home improvements?
An experienced professional ensures safety and proper installation, but it depends on your budget and the type of improvements.
Want to get a higher ROI on renovations?
The type of remodeling you choose depends on your plan to stay or sell the house. Consult a local real estate agent for the best advice on renovations.
