There are so many reasons why homeowners choose to remodel their homes in some way. Whether it’s a purely aesthetic reason or need-based change, home upgrades are rooted in personal value for the owner. As a homeowner myself, I appreciate changes in my home that improve the appearance; however, I’m equally as interested in modifications that will impact its market value. When it comes to increasing your home value, here are the things you should seriously consider.
There are a few basic tenets when it comes to increasing your home value. Here’s the first: upgrade elements in your home that are in high demand in your particular market. That will vary based on where you live and what your bank deems valuable in your home. It also may be contingent on your appraisal. Still, the principle of supply and demand applies with home upgrades, similar to starting a company. What ultimately matters is if you can sell your product, how quickly, and for how much.
Does this mean you need to go buy and spend beyond measure to add elements to your home? Absolutely not. Haphazardly spending money on your house won’t necessarily add value to it. You might think a statue or pool addition to your house may be luxurious, but they could actually deter someone from considering purchasing your home. Are homes with yards in demand? That should clue you in that front or back yards hold value. Landscaping upgrades may work better for increasing your home value. Discover what’s important for your market before you start tearing down or digging up!
Kitchens & Bathrooms
Here’s the second rule of thumb for home upgrades: if you are going to redo and invest in any part of your home, include the kitchen and/or bathroom. This is an almost foolproof plan for increasing your home value. Why? First, they’re highly utilized spaces in ANY home. Second, the kitchen is the heart of any family home, and family homes are definitely in demand. Third, most buyers don’t want to walk into the purchase having to upgrade these spaces. Durable upgrades in a kitchen make a huge impact and first impression during initial walk-throughs. I’ve tested it. Even if clients think the house is in the perfect neighborhood with the perfect yard, driveway and layout, if the kitchen isn’t move-in ready—it can often make or break a sale. Ready-to-go renovations add instant value to a home. It’s definitely something to think about.
Such is the same with bathrooms. Bathrooms that need to be retiled or resealed around tubs and showers are typically a no-go for home buyers. Worn or dull surfaces are red flags, also. For bathrooms, I say if you can touch it, upgrade it! That includes showerheads, faucets, countertops and fixtures. These will almost always yield a value increase for your home.
Appliances & Flooring
Upgrading appliances with the purpose of adding value to your home can be tricky. People have different wants and needs with respect to the look and functions of their appliances. Generally speaking, though, if your appliances are outdated, by all means replace them. However, NEVER replace outdated appliances with low-budget ones. Always work to purchase better quality appliances than what you had previously. This will always be a subjective upgrade, so spend accordingly.
Flooring is a different story, though. Always redo carpet, if only for the sake of sanitation. By and large, most people highly value hardwood flooring, as many homebuilders are moving away from installing carpet. Even apartments and home rentals with wood floors have significantly higher rental price points. For health and cleaning aesthetics alone, you cannot go wrong when upgrading your home to wood flooring. It’s a great investment and option for increasing your home value.
Whether your home will be yours forever or eventually sold to another owner, increasing your home value should always be something you consider. Consider the market demands and durability of the elements in your home space. Make wise investments in home upgrades, and you will increase your ROI in no time!