If you’re thinking of selling your house, there are factors that increase your home value that are out of your control, including its location and the popularity of that market. But you can keep up with repairs and make smart improvements, both proven ways to increase home value. Although renovations rarely recoup 100% of their cost, they can make your family more comfortable and help your home sell faster.
USA Today offers five tips to raise the value of your home, whether you want to build equity faster or get top dollar when you sell.
1. Make it more attractive
Curb appeal—how your home looks from the street—is your first chance to make a good impression. A home’s exterior should entice a prospective buyer to walk through the front door. Make sure existing landscaping is well-maintained. If your yard seems dull in comparison with your neighbors, consider planting flowers or repainting the front door. Once the exterior looks good, focus on the kitchen and bathroom. When these two rooms are outdated, they can keep a property from reaching its highest valuation. A minor kitchen remodel recoups 81 percent of its cost in added value on average, versus 53 percent for an upscale kitchen remodel with stone countertops, custom cabinets, and commercial-grade appliances, according to Remodeling magazine’s “2018 Cost vs. Value Report.” The same is true for bathrooms; a midrange remodel with new flooring and a few updated fixtures deliver a 70 percent return on investment, while an upscale bathroom remodels with heated flooring, custom cabinets and designer fixtures nets an average of 56 percent.
2. Make it low-maintenance
Since many homebuyers worry about purchasing a home that will need constant maintenance, replacing a major component—such as the furnace, water heater or even the roof—before placing it on the market may calm fears of an emergency repair in the near future and help you get a higher price. Improvements that make things easy to clean and maintain also may increase home value. Consider replacing easily stained carpet with hardwood flooring or high-maintenance wood siding with vinyl siding.
3. Make it more efficient
Depending on what area of the country you’re in, energy conservation features can have a significant impact on home value. Energy-efficient mortgages (EEMs) allow borrowers to take on additional debt to cover both the purchase of the home, as well as energy-efficient upgrades. EEMs also can offer lower mortgage rates to increase purchasing power. Consider double-paned windows, enhanced attic insulation, LED lighting, efficient appliances and solar panels. Schedule an assessment with a certified energy auditor or your utility company to determine where your home is wasting energy and which upgrades will save you the most money.
4. Make it bigger
Price per square foot is one way to compare homes that are similar in style and upgrades. Bigger homes often command higher values, and even if an appraiser doesn’t officially acknowledge the full value of added space, a buyer likely will notice. Adding a room is the obvious way to make your house bigger, but you also can create additional living space by finishing the basement or building a deck.
5. Make it smarter
Most buyers are seeking “smart” technology in their new homes, including thermostats, fire detectors, carbon monoxide detectors, security cameras, door locks and lighting. While smart technology doesn’t always increase home value, it does add appeal, with those who see themselves as “techies” more likely to pay more for these items. Unlike replacing the roof or renovating the bathroom, you usually can install these devices yourself for about $1,000 or less.