The goal of every homeowner looking to sell their home is to sell it for at least what they paid for it. In an ideal world, every seller would make money off the sale of their home.
If you want to increase your odds of selling for more than you bought, you need to know what affects property value. Will a full home reno translate to a higher sale price? Will a new coat of paint or landscaped yard make a difference?
Keep reading to find the answers to these questions and our tips on how to increase home value.
Context
- Ways to Increase Home Value
- Add More Square Footage
- Invest in Efficiency
- Beautify the Exterior
- Update the Kitchen and Bathroom
- Time to Increase Home Value
Ways to Increase Home Value
1. Add More Square Footage
One of the most obvious ways to increase your property value is to add more usable square footage to your space. Not only will this provide you or future owners with more living area, but give you a bigger return when you sell. Homes are priced by the number of square feet they contain, so the bigger your home, the higher the price tag.
There are several ways you can add more livable square footage depending on your current layout.
If the basement is roughed in but unfinished, finishing it will make your home more attractive to potential buyers. Add in a bedroom or two, a bathroom, storage space, and a recreation room. You can also renovate the basement to contain a suite so you or future buyers can have a mortgage helper.
If you have a large backyard, you might consider building a guesthouse. These dwellings can cost quite a bit upfront but they're very handy to have. Be sure to check with your local building codes before tackling any additions.
An in-law suite or mortgage helper can also be built on top of an existed garage. Again, you'll want to check with your city beforehand to ensure you're meeting all building codes for your municipality.
If you want to add square footage but don't have the funds to do so, you might consider a home renovation loan. Don't go into debt trying to increase your property valuations, though. Only take a loan if you have the means to pay it back.
Related: The Best Places to Buy Investment Property
2. Invest in Efficiency
Any home, regardless of the year it was built, can be converted into an energy-efficient space. Newer builds are held to much higher standards in regards to energy efficiency but don't overlook it if you have an older home. Even turn of the century dwellings can become more efficient with the right upgrades.
There are many ways to make your space more efficient. Some may involve a higher upfront cost and a lot of time to convert, while others are quick fixes that take just minutes.
If you don't have a lot of money to invest, start small. Change your light fixtures into LED or Energy Star lighting. Light fixtures that have the Energy Star stamp of approval use 90% less energy than traditional models.
If you have the means, you might consider an entire energy efficiency upgrade for your home. Start by ensuring your space has airtight construction, air-sealing around doors and windows, and better insulation.
Your windows might need upgrading if they're old or don't seal as they should. Investing in new windows is one of the top home improvement projects that make an impact on your home's value.
You should consider switching to Energy Star approved appliances. Every appliance you own comes with two price tags — the upfront cost of purchasing and the cost of operating it. Energy Star appliances will save you money on the latter by reducing energy usage.
3. Beautify the Exterior
No one wants to buy a home that doesn't look good from the outside. Many potential buyers will scroll right by homes that look run down. Your home's exterior will be the first thing that buyers look at so you want it to make a statement.
A freshly cut lawn and beautiful flower garden in the front yard will help attract attention. Planters on the porch or colorful window boxes will add a stunning touch of greenery.
Consider switching out old doors or giving your home a fresh coat of paint if necessary.
The backyard is another place to consider upgrading when you're looking for how to increase property value. Many buyers look at the backyard as their own personal outdoor oasis so make it look good. Your outdoor space requires staging just as much as the interior of your home.
Freshen up your garden beds with a new layer of mulch to make your flowers pop.
Give your deck a fresh coat of stain or paint. Sweep or pressure wash the deck and wash your patio cushions. Trim any out-of-control trees or shrubs.
Related: 5 Tips on Managing Multi-Family Rental Properties
4. Update the Kitchen and Bathroom
The two main rooms that will boost your home value are the bathroom and kitchen. These rooms are the ones you should zero in on if you plan on doing small renovations before buying.
You don't need to start from scratch to get a return on your renovation, either.
Switching out an outdated bathroom vanity will make your space look more modern and add the "wow" factor buyers need. You might also consider switching out old lighting or even replacing the tile floor. Since bathrooms are quite small, even a new tile job won't cost an arm and a leg.
The same rule applies to the kitchen. You don't need to rip everything out and start from scratch to update the space. Updated cupboards and countertops will make a statement, but they are quite pricy. New backsplash, lighting fixtures, or flooring are more cost-effective Renos to consider.
Consider upgrading to tuxedo cabinetry where your top cupboards are a lighter color than the bottom. According to Zillow, homes with this type of cabinetry can sell for up to $6,000 more.
There are several smaller-scale things you can do to upgrade your kitchen and bathroom, too. New cabinet hardware can make your spaces look new and modern. Warm up the space with a fresh coat of paint to make the kitchen look and feel more inviting.
Time to Increase Home Value
You don't need to break the bank to increase home value. Small, simple changes can make a big difference in the eyes of potential buyers.
Keep reading our blogs for more home decor and improvement tips.