Investing in Your Home: How to Increase Home Value
Investing wisely in your home can lead to a substantial financial gain. Whether you decide to sell or refinance your home, you will reap the rewards of having increased equity. This guide aims to provide you with strategies to boost the value of your home through carefully planned renovations and upgrades.
Key Takeaways:
- A clean and clutter-free home can significantly increase its value.
- Adding usable square footage through basement finishing, attic conversion, or extensions can enhance home value.
- Upgrading the kitchen and bathrooms can have a positive impact on home value.
- Improving curb appeal through landscaping and exterior enhancements can attract potential buyers.
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To add value to your home without breaking the bank, one of the most cost-effective methods is to clean and declutter. A clean home not only presents well but also allows potential buyers to envision themselves living in the space. Sherri Berry, a real estate agent and operations manager at MidSouth Construction, advises sellers to start by decluttering, as it is a free and effective way to make any home appear more spacious. By putting yourself in the shoes of a prospective buyer, you can understand the value of a clean and organized home. These projects are budget-friendly and can yield a return on investment (ROI) of over 100%. Consider the following projects: pressure washing to enhance curb appeal, window cleaning to allow more natural light, decluttering the garage for a tidy appearance, deep carpet cleaning to freshen up the interior, and bathroom grout cleaning and resealing for a new look. Berry emphasizes the practicality of these projects, as they can greatly improve the overall appeal of your home.
Shannon Feick, the owner of ASAP Properties, a real estate investing firm in Cincinnati, Ohio, has noticed a growing interest among buyers in energy-saving upgrades and smart home technology. These upgrades not only reduce utility costs but also appeal to potential buyers.
One way to save money and contribute to the environment is by purchasing homewares with the Energy Star or Energy Star Most Efficient label. These certified products, ranging from appliances and electronics to doors and windows, undergo rigorous testing to ensure energy efficiency and environmental safety.
Solar panels are also gaining popularity, but it’s important to conduct a thorough analysis to determine if they are suitable for your location. Additionally, adding insulation to key areas of your home can improve energy efficiency and reduce cooling and heating expenses.
It’s worth noting that many of these energy-efficient upgrades may make you eligible for the Energy Efficient Home Improvement Credit, which offers up to $3,200 for qualified improvements.
According to the 2022 Remodeling Impact Report by the National Association of Realtors (NAR), remodeling your kitchen or bathrooms can yield a cost recovery of approximately 71% and 67%, respectively. Even simple updates like painting cabinets, adding a backsplash, or upgrading lighting and plumbing fixtures can significantly enhance the overall look.
Lastly, enhancing your home’s curb appeal can make it more attractive to potential buyers.
