Increasing home value may seem to be a given in a hot market, but there are ways homeowners can impact how much that value grows. If you’re planning to sell soon, need to prepare for an appraisal for a refinance, or just want to protect your home’s value during the time you are there, here are some home ownership tips that will help.
Home Ownership Tips: Add Home Value by Adding Living Space
Adding a room to your home, especially when it’s a seamless addition that looks like part of the original construction, can significantly add value. However, there’s not always room – or money – to expand the actual footprint of the home.
What can you do instead? Look at the unfinished space in your home. Could the basement be finished, at least partially, to add a media room or workout space? Is there unfinished storage space over the garage that, with a little insulation and drywall, could become a home office? When an appraiser tabulates the price per square foot, a greater finished area will add to home value!
Many homeowners are already using every square inch inside, but there are still options for expanding by adding or upgrading outdoor living spaces. If your home already has a porch, consider adding a fireplace and wiring for a tv so you can host outdoor watch parties. Putting a roof over an existing patio will upgrade the space for hosting dinner parties. These sorts of additions will not add square footage in an appraiser’s eyes, but they will make the home feel bigger to potential buyers (and live bigger while you’re there!).
Home Ownership Tips: Kitchen and Bath Remodels Bring the Most Buyer Interest
Kitchens and baths typically are the rooms that bring the most interest from buyers, and putting money there can produce the biggest bang for your buck in boosting home value. Don’t go overboard, though. Studies have shown that some of the more extravagant upgrades, say heated flooring in the bathroom or commercial grade kitchen appliances, will have a lower return on investment than basic upgrades of fixtures, appliances and flooring.
Home Ownerships Tip: Finally, Maintain Home Value by Maintaining Your Home
The home value you gain by the pricier options, like adding a room or upgrading your kitchen, can be offset by neglected maintenance. When you’re ready to sell your home, potential buyers may have a hard time looking past an unkempt yard or cluttered interior to see your home’s best-selling features. Furthermore, if a home inspection reveals deferred maintenance or replacements for the HVAC, roof, or other systems, they buyer may want to renegotiate their offer.
In addition to regular maintenance, regular updates will help, too. Fresh coats of paints, updated lighting, and seasonal plantings can do wonders for showing buyers you care for your home. These small, regularly made changes will help you stay in love with your home, too.
Overall, when making decisions about adding home value, it pays to think about how long you will live in your home. Will you be making changes primarily for your own enjoyment over the next decade or so or for resale in the next few years? If this is your forever home, you may decide the heated flooring is worth the extra cost.