Smart homeowners don’t only invest in a home to live in. They also consider how it builds up equity over time. Homes tend to increase in value over time—a phenomenon called home appreciation—but many factors are involved. These include the economy, demand for housing, and how many homes are for sale.
But another way to increase the value of a home is to make upgrades and renovations that increase its appeal. With the right tips, homeowners can build, or rebuild, their homes to be worth top dollar in the future.
Refresh Home Finishes
Even the smallest changes can greatly influence potential buyers eyeing a home. Small upgrades such as replacing furniture hardware, changing the front door, or adding a fresh coat of paint can add to a property’s appeal.
A recent survey shows that 63 percent of real estate agents suggest painting the interior walls before selling a home. The good thing is that these minor upgrades won’t cost homeowners much.
Maximize the Space
Adding usable space adds more value to a home, especially for properties with a restricted lot.
Homes are valued based on their livable square feet, so it makes much sense for homeowners to consider how they’ll maximize space in their property.
Some great recommendations include the following:
- Adding another bathroom
- Turning the basement into a lounge area
- Creating a separate mother-in-law suite, which adds value to a home by up to 35 percent
These home additions can cost a fortune, but they can get property owners up to 60 percent return and more with home appreciation over time.
Add a Deck
Speaking of livable space, adding a deck to their home is another addition homeowners can consider.
Decks often cost only about half the amount it takes to build a new room in the house. It adds more value and appeal to a home. After all, it makes great use of open spaces as a relaxing place to bond with guests and family.
A Home Remodeling survey reports that wood decks get an average return of 87 percent. A cheaper and more convenient alternative, composite decks return about 74 percent, more than most home renovations make.
So what deck should homeowners consider for their homes? If they want to skip the regular maintenance of natural wood, they should consider getting Trex Select deck boards. This type of deck boasts a realistic wood-grain design and is durable and safe for the environment.
Make an Effort on the Kitchen and Bathroom
Kitchens and bathrooms are the main rooms that sell a home. A remodel of these spaces can return more than 100 percent of its cost. After all, it’s where people spend the most time in their homes.
Some renovation ideas that attract buyers include expanding the walk-in shower and installing stone floors and countertops.
Practice Energy Efficiency
Upgrading fixtures and appliances for energy efficiency keeps utility bills low and offers more appeal to potential buyers. Of course, they’ll also want to lower their monthly costs in the future.
Most homes still use outdated appliances that consume more energy and money than needed. With this, replacing them with modern units also helps sellers score a higher sale price.
For example, installing a smart thermostat can make a home more efficient and save owners a ton of bucks. Being the largest system in the home, HVAC is one of the things buyers look into when scouting for a property.
Improve the Curb Appeal
Curb appeal boosts a home’s marketability, accounting for about seven percent of its value. With this, homeowners should look into improving their property’s façade.
These include installing pavers and stone planters and improving the landscape with shrubs and mulching. Another cost-efficient tip is to add pre-potted plants to the porch or walkway. Depending on the plants, this will cost only around $100 to $200.
A Word to the Wise
One point to consider is that not all of the above tips apply to all homes. Owners also need to consider what their properties need and how much they’re willing to spend on these projects to get the bang for their buck.
Selling a home may be a plan on the back burner for now, but homeowners will be able to reap a great return on their investment in the future with the right upgrades.