When you purchase a home, you make a huge investment. While the goal is to enjoy your home for years and years to come, you also want your initial investment to pay off – you want your home to grow in value. And while plenty of homes do gain value over time, they typically don’t do so quickly.
If you’re hoping to increase your equity and the value of your home, it’s time to consider making a few upgrades. Renovating, updating, and even repairing different aspects of your home can make your home worth more. Making the right changes and improvements is proven to add value over time.
Here are five of the best ways you can increase the value of your home.
1. Upgrade Your Kitchen
The kitchen is one of the most central rooms of a house. It’s where a lot of action takes place – and, as a result, it can quickly become outdated, worn, and in need of new life. Senior residential appraiser Lori Noble told NerdWallet that an outdated kitchen can actually lower your home’s value.
A modern, updated kitchen will attract buyers if you’re looking to sell and add value. According to Consumer Reports, first-time home buyers are looking for kitchens with the latest appliances and style. To achieve this in your kitchen, you can apply a fresh coat of paint, add new hardware like drawer pulls and faucets, and even paint or refinish your cabinets.
You can also make your kitchen look shiny and new by upgrading your appliances. Stainless steel is a clean, contemporary choice that will make the whole room feel fresh. Tough countertops, like granite, marble, and quartz, are also great additions. They’re more expensive than basic countertops and feel and look like an upgrade.
Potential Value Increase: Your home could sell for 3 to 7 percent more.
2. Make Your Home More Energy Efficient
It’s no secret that energy is expensive. In certain areas of the U.S., energy costs are skyrocketing, making it challenging for homeowners to pay their monthly bills. And as a result, increasingly more homeowners are looking for ways to cut their energy costs.
If you’re able to make your home more energy efficient, it can become much more appealing. Potential buyers will be able to see energy savings – and if you don’t sell, you’ll reap the benefits of lower energy costs yourself.
According to NerdWallet, you can make your home more energy efficient with upgrades and changes like the following:
- Double-paned windows or Energy Star certified windows.
- An insulated attic.
- LED lighting throughout your home.
- Energy efficient appliances.
For a bigger and costlier upgrade, you can also add solar panels to your roof. This can cut energy costs completely, but it does require an initial investment.
Potential Value Increase: You can add 1 to 3 percent to your home’s value.
3. Add Smart Home Upgrades
Today, it’s hard to find a home that doesn’t have some kind of smart technology inside. From smart home speakers to smart appliances, tech gadgets are becoming integral parts of any house. And though they’re surprisingly easy to buy, install, and use, they can actually add quite a bit of value to your home.
Although some smart home technologies can quickly become outdated, some are a great investment. Adding the right technology and gadgets into your home may increase its appeal to home buyers and up its value.
According to NerdWallet, a 2018 Coldwell Banker survey found that smart gadgets that increase safety are a high priority for homebuyers. So, you’ll want to look for smart home devices that keep people safe, secure, and comfortable. These can include:
- Smart thermostats.
- Smart fire detectors.
- Smart carbon monoxide detectors.
- Smart security cameras or security systems.
- Smart lights.
- Smart door locks.
- Smart doorbells.
Potential Value Increase: Your home could see a 3 to 5 percent increase in value.
4. Make the Yard More Inviting
The front and back yards of any home are key areas. Many people judge a home based on what they see around its exterior – so you want the front yard to have great curb appeal. Similarly, the backyard should be inviting and a space that can be used to relax, entertain, and more.
According to Consumer Reports, you should think about your home’s yards as an opportunity to expand the livable space. If you can “extend” the home outdoors, it can be more appealing and more valuable. For example, adding a deck or patio with seating, a built-in grill or BBQ area, or an outdoor dining area will create defined, usable space outside.
Additionally, you can add value by simplifying your yards. Overgrown plants and weeds can seem like a lot of maintenance – and can make your home less attractive. Cutting down on the number of plants and eliminating any messy areas can make it look like a much easier space to manage.
Potential Value Increase: Your home could sell for 3 to 5 percent more.
5. Paint the Interior and Exterior
A fresh coat of paint might seem like a really simple upgrade, but it can actually do a lot for your home and its financial worth. Over time, various types of weather, and all kinds of wear and tear, your home’s paint can become chipped, damaged, and faded both inside and out.
Painting both the exterior and interior of your home can up both its curb appeal and its value. A freshly painted house is more attractive, and it looks well-cared for. It also takes the burden off potential buyers; they won’t have to spring for a paint job when they first move in.
When you’re choosing paint to add value to your home, you’ll want to choose carefully. Certain colors can detract from financial worth, while others can increase it. According to Consumer Reports, neutral colors are often the best choice – whites and off-whites are the most appealing to potential buyers. Other neutrals, like beiges, are also classic colors that never go out of style.
Potential Value Increase: You can add 1 to 2 percent to your home’s value.
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