We would all like to increase the value of our homes. Some people want to increase the value of their home because they want to take out a home equity loan and others want to increase the value because they are looking to sell. You can add value by improving certain aspects or areas of your home over others. This may require an up-front investment, but the return can pay for the cost of the improvements and turn a profit.
Discovering what home improvements add the most value is crucial to securing a loan or increasing the asking price of your home. It is important to keep in mind that a new kitchen or bathroom will not sell a house with a leaking roof. Remodeling Magazine claims that you are far less likely to recoup an investment in a major kitchen or bathroom remodel than to recoup an investment on basic home maintenance repairs or upgrades such as a new siding. The return on replacing siding averaged 92.8% of its cost. Buyers generally don’t want to buy and fix, they want to buy and enjoy. So, focus on home improvements that add value where it counts.
As a homeowner, you may be asking yourself what specific improvements add the most value. Those improvements depend on a number of factors, including the current value of your home, the value of other homes in your neighborhood, the current housing market where you live, the quality of the improvements themselves, and the length of time that elapses between the time you sell your home and make the improvements.
As a rule of thumb, a kitchen remodel is often a safe and profitable investment that can return more than 100% of the cost. Even a minor repair of around $15,000 can greatly increase the value of your home. Kitchens are among the most expensive areas of a home regarding construction, both labor and materials. A kitchen is also where many people spend the majority of their time. An investment here can definitely pay back in added home value.
Improvements that add value include modern appliances, all-wood cabinets, stone countertops, and natural or stone floors. You may also want to consider energy efficient appliances as they add value by decreasing utility costs. Extra counter or pantry room is also a good improvement; make the kitchen feel open and welcoming.
A bathroom improvement is also a great way to add value to a home. Bathrooms are also an expensive area of a home to construct and repair, so sinking some money into your bathroom or adding a second bath is well worth the investment.
Spend your money on functional items that people are more likely to use. For example, a walk-in shower is more appealing than a bathtub as most people just don’t have the time to take a bath. Don’t waste square footage on a large tub; instead, use it for a floor-to-ceiling steam shower or a his-and-hers sink combination. If you only have one bathroom in a four-bedroom home, don’t remodel it, but instead build a second bathroom. A second bath will add a lot of value to your home.
Yes, basic home maintenance is a sure way to add value to your home and attract potential buyers. A brand new bathroom is not going to sell a flooded basement. Your first priority should be to maintain the integrity of the home. A beautiful remodel will quickly lose its appeal if the house is falling apart.
Buyers will be more interested in a home if it is move-in ready. They can make improvements in the future without sacrificing the basic function of a home. Most people want to make improvements anyway and add their own personal touch, so put your money in the home itself instead of in cosmetic improvements.
A pool generally adds value to a home, especially in warm climates. A pool can be a status symbol and a fun recreation area for friends and family. While a pool can add value to a home depending on location and construction, it can be very costly. Most people see a pool as added value, but many find them to be a danger that takes up space and is an extra expense.
Making improvements that add value to your home is an important decision that requires a proper plan and budget. Work with a local realtor to learn what improvements are most likely to increase the value of your home. A good investment can go a long way in selling your home quickly and at a higher cost.