So you’re not in your dream home, but you are looking at possibly moving in a few years and want to make the space a bit more functional for you now. This scenario is pretty likely if you are still in your first home there is good news though when it comes to improving your home. Collier & Co break down some of the best ways to increase the resale value of your home and get a positive return on your investment when it comes time to sell.
Renovate your Kitchen or Bathrooms
Kitchens and bathrooms are the best place to start looking at home renovations. These items have the highest ROI, per Forbes and can attract potential buyers when you have these rooms recently renovated. Make sure that you pick fixtures that are in line with current trends in decor or standard fixtures to help down the line when you get ready to resell. If you’re doing a kitchen remodel and are on a tight budget, Lowe’s Home Improvement recommends adding a backsplash, painting outdated cabinets, or adding in a more open concept.
Boost your Home’s Energy Efficiency
This is a surprising one, but boosting your home’s overall efficiency can help attract home buyers, and increase your home value. As energy costs continue to rise, updates to your home like double-paned windows, LED lighting, upgrading an outdated air conditioning unit, enhancing the attic insulation, or even more efficient appliances, can be a great investment. Short term, these upgrades will help you save money on your energy costs, and long term in the resale value.
Increasing your Square footage
This can come in many ways from finishing out a basement to a complete add-on to the existing structure. Square footage plays a large role in the value of your home. Appraisers may not also always include your finished areas, for some details on what qualifies an area, look at the provided guidelines from the ANSI, which state that:
“A Finished area is defined as an enclosed area in a house at is suitable for year round use, embodying walls, floors, and ceiling that are similar to the rest of the house.” Furthermore, “above-grade finished square footage of a house is the sum of the areas on levels that are entirely above grade. The below-grade finished square footage of a house is the sum of the areas on levels that are wholly or partly below grade.”
It’s also important to note that areas that might not qualify, such as finishing out a basement or adding an outdoor space to the house, can help increase the perceived value to potential buyers.
This is all the other items that help make a space more liveable. Investing in hardwood flooring, painting the living room area with a neutral color, adding built-ins in areas around the home can lead to extra functionality to your home now and can help increase the value of your home. We’ve also talked about this before in our blog, “Preparing your home to Sell Checklist”, increasing your home’s curb appeal with landscaping, painting, new siding, or even a new front door can be a positive impact to your home.
Lastly, one step you should remember before you start to make these upgrades is to do a cost vs return analysis on your home improvements. This can be done by looking at comparable homes or homes for sale in your area. By knowing what the improvement is going to roughly help with your home value, you can determine if its worth it or if you might price your home out of the market. Homes are both an investment and a place to live, so making decisions can be difficult when it comes to these analysis and ultimately you’ll need to determine if you can live without the upgrades until you sell. With these tips we hope that you can hopefully make some upgrades to increase the resale value of your home.