A home isn’t just a physical asset but also a financial one that can increase in value over time. Surveys have shown that in the last ten years, the average price of homes increased by about 30% while the average income of most people climbed by just 11% during the same duration. Since 1965, the cost of homes has skyrocketed by 118%. This shows how much the value of homes and real estate appreciates. You can increase the value of your home by applying some home improvements.
For many, selling off their property might be a plan in the foreseeable future, while for others, it might just be about continuing to grow the value of your home or property investment. Whichever way, below are some things you can do to increase the value of your home.
1. Buy a Home Warranty
Nothing beats waking up in the morning with absolute peace of mind, and that’s what a home warranty offers. Home warranties cover or reduce the cost of fixing damages to appliances that break down over time. According to research, having home warranty plans can increase the value of your property and can provide over 500% in return on investment (ROI). The reason is that many buyers would eagerly want to purchase a home with warranty protection because it ensures that if household appliances get damaged, buyers are confident of getting a replacement or repair of the damaged item.
2. Add Usable Space
Adding usable space to a home is a great place to start. In most cases, the value of a home is tied to the amount of space it offers. More rooms, bathrooms, and maybe even libraries can help to give an advantage over competitors when it is time to go on the market. Converting spaces like basements or less used compartments into usable spaces like an extra room, bathroom, laundry, and recreational room for kids is an intelligent financial strategy. If more space is available in the yard, expanding can also be a clever and explicit way to increase home value.
3. Invest in Energy Efficient Appliances
Investing in concepts that lower the energy utility bill is another good way to increase the value of your home. According to the U.S. Energy Information Administration, the price of electricity has seen an average increase of 1.8% per year in the U.S. over the last 25 years. Due to this constant increase, improving the efficiency of your home automatically gives you an edge because buyers would often opt for homes that wouldn’t cost them as much as others would.
4. Prioritize Maintenance
Sometimes, it doesn’t require much effort or expenditure to keep your home in good shape. Applying simple home maintenance tips is enough to bump up the value of your property. The overall condition of a property can either convince or discourage a buyer, so it is understandable for a home to be undervalued when it looks out of shape. Mend the necessary things, then apply a fresh layer of paint to increase its aesthetic appeal and total value. It is easier to appreciate things that are naturally appealing to the eyes.
5. Work on Exteriors and Doors
Little design changes can improve the total appearance of your home. The first thing potential buyers see is the exterior which will go a long way in giving a good impression. Replacing old and dull-looking doors with something modern and fashionable can give the entrance of your property a nice and elegant appeal. Good front entrance, garage doors, flowers, and all-around welcoming aesthetics can bump up the value of your home.
6. Install a Water Filtration System
A water filtration system is a luxury that homebuyers adore. These systems typically save shopping costs because they will not need to buy bottled water in addition to purifying the water. Boost your property’s value with this addition.
7. Update the Kitchen
Many people often take particular interest in the kitchen as one of the main features of a home. An outdated kitchen can hugely reduce the value of your property. Upgrading to modern appliances and hardware and taking out older models and out-of-date concepts or designs would help to give one’s kitchen a more futuristic look.
If redesigning would be too costly, a simple remodel would work fine.
Whether the idea is to put up the home for sale or just an appraisal to determine its value, the ideas listed above are all great ways to grow the equity of your property. With these strategies, pushing your home’s value higher becomes a walk in the park.