How to Increase a Home Value With Improvements
Would you like information on maximizing home improvement projects’ return on investment (ROI)? How about understanding which projects contribute most significantly to increasing a home’s market value?
Well, you have come to the right place! We will comprehensively discuss the improvements to increase home value.
Whether you are looking to put your house on the market or invest in the future, it’s never too late to start on projects that will raise the value of your property.
However, no one likes to spend tens of thousands of dollars on renovations, especially ones that don’t carry a return on investment.
Luckily, there are many budget-friendly projects that the financially conscious can take on themselves without burning a severe hole in their wallets.
Since it can be challenging to decide which home improvements to make, we’ve compiled a list of the few ways you can make a living in your place enjoyable in the short term while getting remarkable returns when it comes time to sell.
People always ask about the best low-cost home improvements, especially when considering selling their home. Getting the most bang for your buck is essential, especially when you don’t have unlimited funds!
Working as a real estate agent for the past three decades, many homeowners will ask me what are the home improvements that add value before selling. These sellers are wise because they are looking to do everything they can to maximize their profits.
As you might imagine there are some upgrades that add more bang for your buck. Home buyers love to see specific amenities in the homes they will purchase.
I will share my knowledge and let you know what works and what to avoid. The right upgrades can help sell a house faster and for more money. If you are a first-time home seller, you’ll enjoy the tips.
Sit back and soak in the improvements that will increase your home’s value!
Structural and Mechanical Improvements
Before focusing on cosmetic improvements, ensure you have taken care of all necessary repairs, upgrades, or replacements for your house’s interior systems, including heating, plumbing, and electrical.
Buyers expect the basic infrastructure to be well-functioning and do not want to pay for future repairs or replacements. A significant number of buyers today prefer turn-key homes.
With today’s fast-paced lifestyles, buyers desire to focus their time elsewhere.
Upgrading Your HVAC Has an Excellent Return on Investment
Installing a new HVAC system can offer a significant return on investment (ROI) and increase the value of your home. However, the exact ROI can vary based on multiple factors. These include the system’s efficiency, the real estate market conditions in your area, and the age and condition of your existing system.
The return on investment averages around 30-40 percent. So, if you spend $10,000 on a new system, you can expect to get back $3000-$4000 when you sell. In my experience, it has been higher. Most buyers love to see a brand-new heating and cooling system and are willing to pay for it.
The real benefit of this upgrade is the money you’ll save over a less efficient system. If you have an older home, it is one of the best improvements for increasing energy efficiency.
Consider several factors before investing in a new HVAC system to increase home value. These factors include the system’s energy efficiency, potential savings on energy bills, and overall appeal to potential buyers.
An energy-efficient HVAC system contributes to lower energy bills and can be a selling point for environmentally-conscious buyers, potentially making your home more attractive.
In addition to financial considerations, a new HVAC system can offer benefits such as improved energy efficiency, which translates into cost savings on energy bills. Depending on local incentives for installing energy-efficient appliances, you might even get tax benefits or rebates.
Before deciding to replace your HVAC system, it’s wise to consult with a real estate professional in your area to understand the current market conditions and how much value a new HVAC system could add to your home.
This will help ensure your investment aligns with your home improvement and resale goals. An energy audit can also help you save in other areas around the property.
Outdoor Repairs and Replacements
Sometimes, repair and replacement projects can increase the value of the home much more than remodeling projects can. Fortunately, these projects are the least expensive and add to the house’s curb appeal. Here are some simple but effective things you can do around your home to spruce the place up and add value.
These are budget-conscious improvements that won’t break the bank. If you own an older home and your roof is getting old, budget for this expense. While a roof is necessary and part of putting shelter over our heads, it does not have a significant return on investment.
If you are selling your home and the shingles still have at least a couple of years of life left in them, do not replace the roof!
Other things worth replacing or repairing include the front door, garage door, and siding. These projects could drastically increase your home value; the average return on investment for such projects is almost 72%.
Not only are these improvements noticeable, but they can also help sell a home.
Landscaping
Regarding landscaping, your home does not need magnificent gardens like the one pictured above. However, your yard should be neat and manicured. Sprucing up your landscaping is a low-cost way to prepare your home for sale.
Take the time to add bark mulch to spruce up the appearance of your surroundings. Planting seasonal flowers goes a long way for not that much money.
If you have more budget, consider replacing any older-looking shrubbery with newer flowering varieties. If your home is on the market, keep your lawn cut and weeded for a better appearance. Remember, first impressions are everything.Click To TweetAdd a Patio or Deck
A deck or patio is a popular feature of many outdoor living spaces. It serves as a space for dining, socializing, and outdoor work. On average, a backyard deck increases resale value by over $7,000.
The cost of building a deck varies widely depending on several factors, including the deck size, materials used, complexity of the design, and geographic location.
Here’s a general overview to give you an idea:
- Materials: The choice of decking material significantly impacts the overall cost. Standard options include pressure-treated wood, cedar, composite, and PVC.
- Pressure-treated wood is the most cost-effective, with prices ranging from $15 to $25 per square foot, including labor.
- Cedarwood offers a natural look and costs between $25 to $40 per square foot with installation.
- Composite decking is more durable and requires less maintenance than wood. Its installation costs range from $30 to $55 per square foot.
- PVC decking is similar in price to composite, also ranging from $30 to $55 per square foot installed, and offers different aesthetic options with low maintenance.
- Size: The larger the deck, the higher the overall cost, but due to economies of scale, the price per square foot might decrease as the size increases.
- Design Complexity: Simple, rectangular decks are the most economical to build. Additional features like multiple levels, built-in seating, stairs, and railings will increase costs.
- Labor Costs: Labor can account for a significant portion of the total cost. On average, labor costs for deck installation range from $8 to $22 per square foot, depending on the project’s complexity and local labor rates.
- Geographic Location: Costs can vary based on where you live due to differences in labor rates, material costs, and building code requirements.
Pricing Information
Considering these factors, building a basic 10×12-foot deck using pressure-treated wood could cost between $1,800 and $3,000, while using more expensive materials or adding custom features could increase the price to $5,000 or more.
Costs can easily exceed $10,000 to $15,000 for high-end materials like composite or PVC or for larger and more complex designs.
It’s also important to factor in additional costs, such as permits, which can vary by location, and whether you’ll need to prepare the site or remove an existing structure.
To get a more accurate estimate, it’s a good idea to get quotes from several local contractors who can assess your specific project requirements and local conditions.
Websites like HomeAdvisor, Angie’s List, or Houzz offer online cost estimators for various home improvement projects, including deck installation. These platforms can also connect you with local professionals for personalized quotes.
Bathroom Improvements
Bathrooms are among my favorites for improvements that increase property value.
Baths are among the most critical rooms in a home when selling. An ensuite bath is considered one of the most crucial in a larger home. Buyers are drawn to a luxurious master bathroom.
Improving the cosmetics of your bathroom will quickly bolster your property value.
You can start by redoing the bathroom floor. Invest in new, quality flooring; neutral-toned tiles have the most potential to add value.
It would also be a good idea to replace any outdated fixtures. For example, adding stylish lights will give your bathroom a renewed sparkle that will appeal to buyers.
For as little as $50, you can replace an old-fashioned light with something elegant. You can also update your shower with a new spa-style chrome showerhead for less than $100.
Consider replacing your towel bar with one that shines and glistens for the most straightforward and cheapest improvement. A fresh coat of paint can also make a huge difference.
Bathroom Remodel Return on Investment
The return on investment (ROI) for a bathroom remodel varies depending on several factors, including the scale of the remodel, the quality of materials used, and the current market conditions in your area.
According to a guide from Block Renovation, a midrange bathroom renovation nationally returns an average of 64% of the investment at resale, with the average remodel cost being $21,377 and the return at sale being around $13,688.
For upscale remodels, which include more significant changes and high-end finishes, the ROI can be slightly lower, around 56.6%
Remodel Works points out that the ROI can also depend on the specific features updated in the bathroom. For instance, opting for copper, gold, nickel, or modern brushed finishes for fixtures can maintain or increase the resale value, unlike outdated materials like brass.
I can attest that brass makes a home more challenging to sell! I have experienced it in my house and the many homes I have sold over the last ten-plus years.
The efficient use of space and the addition of features like natural light can also impact the perceived value of the bathroom remodel. The article also emphasizes the importance of ensuring any updates align with the home’s overall style to appeal to potential buyers.
It’s worth noting that the immediate financial ROI isn’t the only benefit of remodeling your bathroom. Improved functionality, aesthetics, and the personal enjoyment of the upgraded space can also offer significant value to homeowners.
Upgrades Lead to Faster Sales
Additionally, updated bathrooms can make a home more attractive to buyers. They potentially lead to a quicker sale, even if the direct financial return is not above 100%.
When considering a bathroom remodel, it’s essential to consider the financial ROI and the other less tangible benefits. It may also be helpful to consult with real estate and remodeling professionals to understand the most valued updates in your area.
It’s essential to know how to maximize the appeal of your remodel to future buyers.
Flooring Upgrades
The flooring in a home is one of the most important for sure. It is one of the first things a buyer will notice. If your floors are tired, worn, and beaten up, a buyer will mentally start subtracting what they will pay for the property.
Certain rooms in the home, including the kitchen and baths, have floors that are more important than others. We spend a lot of time in these areas, so it only makes sense.
If you have less desirable floors, such as vinyl or Pergo, they could be worth replacing, especially if the home you own is at a price point where more desirable selections are expected.
If you have hardwood flooring in rough shape, refinishing is one of the better home improvements for increasing home value.
Kitchen Appeal is Vital
Kitchens are typically the core and most important part of a family home. Therefore, almost anything you do to improve this area of the house will undoubtedly enhance its value.
Whether you want to remodel the kitchen or make minor adjustments, you should start by repainting the walls.
Vinyl floors are considered out-of-date, so replace them with hardwood or tile. Please avoid laminate; as mentioned above, it does not appeal greatly.
Other projects that will add value include updating the kitchen sink and light fixtures and installing new cabinetry. If you don’t have the budget to replace the cabinetry, consider refacing the doors, which can be far less expensive, but change the complexion.
Lastly, it is surprising how just updating drawer handles and cabinet knobs can give the kitchen the proper cosmetic facelift it needs to brighten the entire room. Another method you can try if you are on a tight budget is sanding your cabinets and then staining or painting them.
Remember that painting cabinets can be a lot of work and is often best left to a professional painting company. You can also purchase new stainless-steel appliances or new countertops.
Adding Granite is One of My Favorite Amenities
Adding granite countertops to your kitchen when selling is, in fact, one of the highest-returning investments you can make. Buyers love them, and in some price points, expect them!
Adding granite countertops to a kitchen is considered a valuable investment for homeowners in terms of aesthetic appeal and increasing home resale value.
They are praised for their durability, resistance to stains and moisture, and minimal maintenance needs. This makes them an attractive feature for potential home buyers.
Additionally, real estate experts often recommend upgrading countertops, including granite, as one of the key renovations that make a home easier to sell. The National Association of Realtors reports that a kitchen remodel has a high return of around 80 percent.
When selecting granite countertops, considering factors like the slab’s color, pattern, and thickness can maximize your ROI. Homelight recommends choosing a 3-cm thick slab for aesthetic appeal without requiring extra support. Working with experienced fabricators and installers is also highly advisable.
Opting for neutral tones and finishes like honed or matte can appeal to a broader range of buyers. This will increase the potential ROI when you sell your house.
The actual added value to your home’s resale price will depend on various factors, including the real estate market conditions and the property’s location. Consulting with a local Realtor can provide a more accurate estimate based on your circumstances.
Basement as Living Area
If your house has a basement, transforming it into a finished room adds practical square footage. This project is arguably the best way to improve your home value, as it converts an unfinished basement into a physically appealing and functional room.
The cost of finishing a basement is much less than the comparable square footage of an addition.
According to Angi.com, remodeling a 400- to 1,500-square-foot basement can yield a potential return on investment of up to 75%.
You will quickly discover that finishing a basement can add a significant amount of gross living area to your home at a fraction of the cost of adding the duplicate square footage above grade.
Popular Basement Finishing Ideas
A few ideas for what the basement could be turned into include the following:
- High-end men’s den: A man cave or sports den has become increasingly popular. You can go the inexpensive route or go for a luxury man cave.
- An exercise area or home gym: why pay for gym memberships when you can have a great space at home?
- Home theater: Some people are spending serious money on a home theater. Do not over-improve in this area.
- In-law suite of guest bedroom: more and more parents are returning to live with their children. Having a bedroom in the basement is a popular design element more and more buyers are looking for.
- Space for kids: A children’s play area is a great place to store all the toys after they are removed from the upstairs living area.
When you are going ahead to make your basement oasis, make sure you get a building permit!
Over the years, I have seen many real estate clients who have not pulled permits, and it has cost them a lot of time, aggravation, and money later on when they need to sell.
Lack of pulling permits is one of the remodeling mistakes that has become commonplace with many people.
Open Floor Plan
One of the most common features that home buyers are looking for these days is an open-concept floor plan. Many older houses do not have this kind of design, and it is among the home improvements that increase value most.
To attract more buyers and increase the price of your home, you might want to consider knocking down one or more of your walls to create a floor plan that potential buyers will love.
Instead of walls separating your living spaces, an open-concept floor plan will create an even flow throughout the house, making your home feel bigger and improving your sight lines.
Just make sure you don’t remove any “load-bearing walls.” Consult a structural engineer or build contractor qualified to create these kinds of modifications.
According to NAHB’s survey, 85% of buyers prefer an open design between the kitchen and dining room, 79% favor an open arrangement between the family and the kitchen, and 70% like an open layout between the family and dining room.
Curb Appeal
This last type of project is an important one. The first thing potential buyers will see is the front exterior of your house. Your curb appeal will decide whether or not they choose to check out the rest of your home.
If you have enough in your budget and need major landscaping work, consider hiring professionals to handle this project.
Landscape architects are usually more expensive than if you did the work yourself, but they will significantly improve your home value in the long run.
Removing outstanding debris, trimming all of the foliage, and eliminating weeds from the grass is crucial. Sprucing up your front yard can boost your property value by as much as 10%.
Other projects that improve curb appeal include lining the walkway with solar-powered lights and adding color by planting a wide assortment of flowers.
Look at this great list of ways to add curb appeal to your home.
The above improvements to your home will make it more enticing for a buyer and put extra money in your pocket. You should now be well-armed to sell your home for the most money possible!
Quick Exterior Improvement Tips
Here’s a comprehensive list of home improvements that can significantly enhance your home’s curb appeal:
- Line a Walkway With Bricks or Pavers: Adding pavers alongside your existing walkway can introduce color, texture, and width, creating an inviting path to your door
- Replace a Light Fixture: Updating your outdoor lighting can improve the functionality and style of your home’s exterior.
- Plant a Tree: A well-placed tree can add to your property’s visual appeal and provide shade as it matures. This can be especially helpful on an open corner lot.
- Add Low-Voltage Lighting: Illuminating walkways and landscaping can increase safety while enhancing the beauty of your home at night.
- Install Shutters: Adding decorative shutters can provide color and depth, enhancing the windows’ visual appeal.
- Install a New Storm Door: A new one can improve security, energy efficiency, and the look of your main entrance.
- Install Flower Boxes: Window boxes filled with flowers add charm and a splash of color to your home’s exterior.
Additionally, the following renovations and DIY projects can also contribute to improving your home’s curb appeal:
- Embrace Natural Boundaries: Using landscape features like hedges or bamboo to define property lines.
- Incorporate Copper Accents: Adding copper fixtures like outdoor lighting or house numbers for warmth and elegance. This is one of my favorites!
- Use Earth Tones and Moody Dark Colors: Painting exteriors with bold, dramatic colors for a striking impact.
- Embrace Organic Shapes and Curves: Opting for curving pathways and organic landscaping shapes.
- Add Wood Accents: Integrating wood elements with earthy color palettes to add natural appeal.
Don’t Throw Your Money Away
Making the right home improvements that will boost your home value is an important consideration, especially when you will be selling shortly. You might be wondering what some of the worst home improvements are that offer little to no return.
Over the years, I have observed that many homeowners mistakenly believe that every so-called improvement they make adds some value.
It is as if they do mental math for all their improvements over the years.
What comes as a surprise is that there are home improvements that decrease a home’s value! In the article, you will see five potential additions to a house that could drop its value, including losing a bedroom, an above-ground pool, painted trim colors, a themed children’s bedroom, and a hot tub.
Take a look and see why each of these could potentially make a buyer offer less for a home. You’ll also want to avoid fixes and renovations that have a low ROI when selling.
Cheap Upgrades to Increase Home Value
Here are some cost-effective improvements that can significantly enhance the value of your home. These are all easy upgrades to make.
- Paint: Freshen up interior and exterior walls with a new coat of paint. Choose neutral colors to appeal to a wide range of buyers. Painting is one of my favorite tips for improving a home. It offers a significant bang for your buck.
- Cost-effective tip: Purchase paint in bulk or look for discount offers at hardware stores.
- Landscaping: Improve curb appeal with basic landscaping. Trim hedges, plant flowers, and maintain a healthy lawn.
- DIY approach: Do the landscaping yourself to save on labor costs.
- Hardware Updates: Replace old doorknobs, cabinet handles, and light fixtures with modern alternatives.
- Budget-friendly: Shop for hardware at discount home stores or online sales.
- Deep Cleaning and Decluttering: A clean, clutter-free home appears more spacious and inviting.
- Cost-saving strategy: Tackle the cleaning yourself and organize a yard sale for unwanted items.
- Energy-efficient Improvements: Install LED lighting, seal windows, and add insulation to improve energy efficiency.
- Long-term savings: These upgrades can reduce utility bills, a selling point for potential buyers.
- Smart Home Features: Add affordable smart home devices like thermostats, smoke detectors, and security cameras.
- Value addition: These features enhance convenience and safety, appealing to tech-savvy buyers.
- Bathroom Updates: Refresh bathrooms with a new vanity mirror, faucet, and shower curtain. Consider re-grouting tiles.
- Low-cost renovations: Focus on cosmetic changes instead of full remodels to decrease costs.
- Kitchen Facelift: Update the kitchen by painting cabinets, adding a new backsplash, and upgrading the faucet.
- Affordable alternatives: Use peel-and-stick tiles for the backsplash and refurbish existing cabinets.
- Enhance Storage: Add shelving units or closet organizers to maximize storage space.
- DIY project: Build or install the storage solutions yourself to minimize expenses.
- Flooring Updates: Clean or refinish existing floors. If replacement is necessary, consider cost-effective options like laminate.
- Smart choice: Choose durable, easy-to-install flooring that mimics the look of more expensive materials.
Implementing these upgrades requires balancing affordability and appeal. Focusing on changes that offer the best return on investment can make your home more attractive to buyers without breaking the bank.
Marketing Your Home For Sale
When you are ready to put your home on the market, showing off all the hard work and labor you have invested in it will be essential. Buyers who come to view your property should be aware of precisely what you have done to it.
One of the best ways to do this is to market your home improvements. The agent you hire to sell your home should provide marketing materials showing your actions. Remember that your upgrades will ultimately influence what you sell the house for.
Showcasing this to a buyer could influence their decision to pay for your home!
Additional Helpful Home Improvement Articles
- What are the best tips for making your house more appealing? Find out via Warner Robbins Real Estate.
- What home improvements should be avoided for resale? Learn what they are via Rochester Real Estate Blog.
- What are a few minor home improvements that make a significant impact? Frederick Real Estate Online provides a detailed overview.
Use these additional references to make sound decisions about adding value to your home, whether you have an unlimited budget or need to be more frugal.
About the Author: The above Real Estate information on home improvements that increase value was provided by Bill Gassett, a Nationally recognized leader in his field. Bill has expertise in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications he has been featured in. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. For the past 38+ years, Bill has helped people move in and out of Metrowest towns.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
