How to Increase Your Home's Value
The main reason one increases the value of their home is if they are selling. If no plans for selling the home are in the future then a remodel could increase your tax bill. Be very careful when choosing to upgrade. There are many ways to increase the value of your home. Some improvements are more expensive and time-consuming like additions and major remodels, to less intensive on your time and your budget like making sure the home's curb appeal is on point by simply tidying up the yard.
The first thing to consider before embarking on any project is the values of the other properties in your neighborhood. It is imperative that you do not raise the value of your home far beyond the values of the other homes in the area. The reason behind his is generally, people who want luxury homes will tend to shop exclusively in the areas that are higher-value communities. If the house you are planning on selling in your neighborhood is the best, it is very unlikely that you will get back much of the investment you made. When planning renovations, try to keep the value of your property within 15 to 20 percent of your neighbors'.
These figures list the top ten remodel projects by percentage of the money you will recoup at resale. These are a ballpark and can vary from area to area, but are as follows.
Project (average cost recouped, national):
Minor kitchen remodel (88%)
Bathroom remodel (85%)
Major kitchen remodel (81%)
Family room addition (80%)
Deck addition (77%)
Master suite (75%)
Attic bedroom (74%)
Siding replacement (73%)
Window replacement (69%)
Home office (55%) averages listed here are national and can vary. It can be tricky. Some improvements you may think raise the appeal may not
The averages listed here are national and can vary. It can be tricky. Some improvements you may think raise the appeal may not appeal to buyers.
If selling, here are some great things to keep in mind:
Neutral mainstream designs have a wider appeal for the buying public. Avoid any niche renovation that does not appeal to the wider market.
Use quality and durable of materials when renovating your home. If you are more into DIY (do it yourself) take stock of your skill levels, do what you can, and hire the right people to augment what you can achieve on your own. In the end you will happier with the results.
Continuity is important. Poorly planned additions and improvements not in the property's current style detract from the overall appeal of a home. Make sure the flow of the home makes sense and looks visually appealing.
Converting bedrooms into bathrooms is not a wide idea, it reduces the number of bedrooms which is the main selling point for any home.
Be mindful of your pricing. An extravagant kitchen remodel in a lower to average priced home is a waste of money unless you plan on living there.
If not selling, focus on the sorts of home improvements that will reduce your tax bill. Any improvement that prolong your home's life is qualified including new fencing, driveway, new room addition, swimming pool, garage, porch or deck, built-in appliances, insulation, up to date cooling and heating systems, landscaping and much more. Be sure to check into what will increase your home's value before starting the renovation.
Projects that may increase your home’s value include Jacuzzi (4 jets or more); permanent hot tub; in-ground pool with nice deck area; security system; sprinkler system; substantial outbuildings such as a two-car garage or finished workshop; and vaulted or trey ceilings. Think twice about the following projects, however, as they may not add value to your house: above-ground pool; ceiling fans; garden pond; and light fixtures.
Home value increases with the following projects: Jacuzzi (4 jets or more), built-in pool, permanent hot tub, security systems, out-buildings such as 2 car garages or finished workshop. Above ground pools, ponds, light fixtures and ceiling fans at little or no value.
Don't let a smaller budget stop you from improvements. Even if you lack the funds for minor remodeling, there are many low-cost ways to increase the value of your home. The least is to focus on what makes your home appealing to prospective buyers.
The outside of your home should always be perfect. Attention to detail is key. Clean gutters, wash windows and remove all cobwebs and insects. Make sure the lawn is cut, hedges trimmed and sidewalks and drive always swept. Add some color with plants that fit your budget. These little tweaks can put you ahead of a similar home in your area that is in the same price range.
Finally, a great investment is the perfect landscaping. Especially in these times where concern for drought is in the forefront of our minds, a nice, drought tolerant yard can up the value of your home. A well-executed landscaping job has a recovery rate of 100 to 200 percent over a kitchen of bathroom renovation.
Whether considering listing or simply raising the value of your home, plan carefully and reap the rewards of your hard work.