Copy These Smart Improvements That Skyrocket Home Values
When you become a homeowner, you are not just buying a place to live; you are starting an investment. Homes are a great way to build up credit and equity. However, any piece of property is just as easily destroyed by ill-considered attempts to increase its value. And some adjustments, additions, upgrades and other work only bump up the value.
Home improvements can "significantly enhance the value of a home," according to Colten Claus, an associate broker with 8z Real Estate. "But it's crucial to consider local market preferences and the overall cost vs. benefit of each upgrade. By strategically investing in these areas, homeowners can not only enjoy their living space more but also see substantial returns when it comes time to sell."
Here are 10 ways that people skyrocket the value of their homes, according to some real estate agents and experts.
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1. Making Renovations and Updates
What are the two rooms that will help increase the value of your home after a remodel? The bathroom and kitchen, of course.
"These rooms are crucial in a home's appeal," said Lynn Brown, a Realtor at Coldwell Banker. "Updates like new countertops, efficient appliances and modern fixtures can dramatically increase a home's marketability and value."
"These areas offer the highest return on investment. Updating them can drastically improve a home's appeal and functionality," Claus said.
However, you should start by maintaining and repairing what might be broken or what might need replacing as a good baseline.
"Ongoing maintenance, such as fixing leaky faucets, replacing old roofing and ensuring the electrical system is up to code, preserves the home's value," Brown said. "Preventative maintenance avoids larger issues that can detract from the property's value at sale time."
2. Adding Energy-Efficient Features
Save on your utilities bill? Check. Be less impactful on the world? Check. Add value to your home? Big check. Sustainability upgrades are a win-win situation.
"Installing energy-efficient windows, solar panels and better insulation can reduce utility bills and attract energy-conscious buyers," Claus said. He cited a study by Zillow, saying, "Homes with solar panels can sell for 4.1% more on average than similar homes without them."
3. Enhancing Curb Appeal
Landscaping and exterior improvements help make a good first impression, which is critical whenever a house goes on the market, according to Claus.
"Simple additions, like new siding, a well-maintained garden or a fresh coat of paint, can make a significant difference," Claus noted.
4. Expanding Living Space
Additions and extensions simply give you more space in your home, adding to the value in the process.
"[A]dding a room or converting non-living spaces like basements or attics into functional areas increases square footage and utility," Claus said.
It's not just inside that counts, either.
"Outdoor living spaces have become particularly desirable," Brown said. "Features like built-in grills, fire pits and comfortable seating areas can increase a home's desirability and perceived value."
5. Adding Smart-Home Technology
Living in the modern age means your home needs the integration of modern technologies. Claus highlighted some smart-home features, saying "thermostats, security systems and fire detectors are increasingly popular and can boost a home's marketability."
"Integrating technology for enhanced security, efficiency and convenience — such as smart thermostats, door locks and lighting systems — can be a significant selling point," Brown said.
6. Improving Home Efficiency
One easy place to start with an upgrade is the HVAC system, which stands for heating, ventilation and air conditioning. It's the setup in your home that regulates and improves indoor air quality.
"Installing energy-efficient windows, insulation and HVAC systems reduces utility bills and appeals to environmentally conscious buyers," Brown said. "Energy Star-rated appliances and solar panels are also attractive additions that can boost property value."
"Upgrading heating, ventilation and air conditioning systems to more efficient models can be a selling point that also enhances home comfort," Claus said.
7. Updating the Essentials
If you are looking to increase the value of your home, start with the basics, which is the foundation that your home sits upon and the roof that is above your head. You'll be surprised how this boosts the overall price of what your home is worth.
"Ensuring that critical components like the roof and foundation are in good condition reassures buyers about the longevity and safety of their investment," Claus said.
"When considering roofing materials, choices like metal roofing and high-quality asphalt shingles are not only durable but also aesthetically pleasing," said Ben Connell, the owner of Connell Roofing. "These materials contribute to energy efficiency, which is a growing priority among homebuyers."
8. Modernizing Home Aesthetics
Contemporary designs and fixtures are what's in vogue these days. If your house is feeling and looking a bit dated, then it's time to spruce it up and bring it into the modern day.
"Incorporating modern design trends can appeal to today's buyers," Claus said. "Simple changes, like updating lighting fixtures and hardware, can modernize a home quickly and inexpensively."
9. Adding Luxurious Touches
High-end finishes sound fancy and maybe too rich for your blood, but don't be scared off by the description. You are putting the best into the features and details that people take note of, especially when purchasing a home.
"Updating a home with neutral paint colors, high-quality flooring and tasteful fixtures can appeal to a wider range of buyers and enhance the property's aesthetic appeal," Brown said.
"Installing high-quality finishes like hardwood floors or granite countertops can elevate a home's elegance and appeal," Claus said.
10. Making Legal Additions
Accessory dwelling units can be anything from an in-law unit next to the house to a home office that is detached but still on your property. Either way, your home value will go up.
"Adding a legal secondary dwelling unit can offer additional income potential and increase property value," Claus said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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