Are you wondering which upgrades can increase the resale value of your home? Selling a home can be a time-consuming and challenging process, but making a few improvements can allow you to sell your home at a higher price. Not all renovations can be recouped though. In some cases, certain improvements may not increase home value and could end up being very costly. In this article, I will discuss how to increase home value and which upgrades add to the resale value of your home.
1. Remodel Your Kitchen
A kitchen is one of the most important parts of the house. Some minor kitchen remodeling is very beneficial for improving resale value. You can consider adding a fresh coat of paint and replacing old appliances with energy-efficient ones that have been rated by Energy Star. Using these appliances is good for the environment. They also allow you to save money, which can appeal to potential buyers. Besides this, you can install wooden cabinets, stone countertops, and wood or stone flooring.
According to HGTV, you can expect to recover 92.9% of your investment in a minor kitchen remodel (approximately $15,000).
If you choose to remodel your kitchen to increase home value, make sure you don’t go overboard. Upgrading your kitchen to make it overly fancy will backfire if it doesn’t match with the rest of your house. Other rooms may appear too unappealing in comparison, which can discourage buyers from going forward with the purchase.
2. Repaint All Rooms
Besides repainting your kitchen, you can also consider adding a fresh coat of paint to the other rooms in your home. A recent paint job can do wonders for improving the resale value of your home. It makes the rooms appear much cleaner and well-maintained. Paint is also pretty cheap, so if you are wondering how to increase home value in a cost-effective way, then this is one of the best upgrades to opt for.
Consider using neutral paint colors that will appeal to a wider number of buyers.
3. Add a Second Bathroom
If you have only one bathroom, then considering upgrading your home to add another one. You can check for any underutilized spaces or empty rooms in your home and add a bathroom there. Typical spaces include closets or an area under the stairs.
You can consult a home contractor for the amount of space you need for this. Normally, a full bath with a standup shower takes up at least 30 square feet, while a half bath needs 18 square feet. Adding a bathtub will require an additional space of 5 square feet (total space required: 35 square feet).
If you are opting to add a second bathroom, try to buy any fixtures and accessories at a reduced price to control your costs and generate a higher ROI. Typically, the ROI for an additional bathroom is over 100%. According to HGTV, a homeowner who spent $9,400 on a bathroom remodel was able to recover 182% of the remodeling cost at resale.
4. Use Landscaping to Improve Curb Appeal
Landscaping is a highly affordable way to increase home value. If your home has a garden, then investing in landscaping to improve curb appeal can do wonders for your home’s resale value. According to real estate experts at Forbes, having a garden with blooming flowers, healthy trees, and neatly trimmed grass adds to the aesthetic appeal of your home.
Some of the cost-effective changes you can make here include:
- Plant a well-positioned tree in your garden to provide shade and limit the transfer of heat during the summer. This can lower the temperature in your garden by 6°F. You can also reduce energy costs by 25% and enhance curb appeal. Adding up to 3 trees can decrease your energy bills by 50% in the summer and by 10% to 30% in the winter.
- Plant young shrubs and provide them with an abundant amount of space to grow. These will also help cool your property.
- Consider using perennial plants or flowers to reduce maintenance costs.
- Avoid installing artificial grass. Doing so can increase your energy costs and harm the environment.
5. Replace Roofs and Windows
Replacing roofs and windows is another great way to increase the resale value of your home. These are structural upgrades that add to the longevity of your house. For instance, if your roof leaks, then this won’t reflect very well on buyers when they carry out an appraisal of your home. Replacing roofs won’t just leave a better impression on buyers. It also delivers an ROI of 80% or more at resale.
You can also consider replacing old windows with energy-efficient ones. According to Energy Star, adding these windows lets you save around $500 annually in heating and cooling costs.
The cost of replacing windows in an average-sized property is between $7,500 to $10,000. You can recover 60% to 90% of these costs when you resell your home. Moreover, you can receive a 10% green energy tax credit for this home improvement.
Making strategic upgrades to your home can help you attract more buyers and negotiate the selling price to your advantage. You need to be smart about this, though. Avoid expensive upgrades such as adding an in-ground swimming pool, a whirlpool bath, or an additional room. These are very costly, and you will find it hard to recover your investment when you resell your home.
Moreover, you also need to keep an eye on the average home values in your neighborhood. For instance, if the houses in your area have an average value of $250,000, then making upgrades that hike up the price of your home to $300,000 won’t work in your favor. Most buyers have a budget in mind when they check homes in a certain neighborhood and may not be willing to pay a higher amount that exceeds their budget.
Talk to Barbie King
If you want to learn more about how to increase home value to resell at a higher price, then get in touch with me. I am a real estate agent in the Greater Indianapolis area and can help you figure out which upgrades would work best to boost the resale price of your home.