Nearly 65% of U.S. homeowners believe the value of their home will continue to rise over the next 10 years, according to a national survey conducted online in August 2018.
That may be optimistic, considering that some factors that determine what a house is worth, like its location and the popularity of that market, are out of your control.
If, like 70% of American homeowners, you believe your house is your biggest asset, taking care of it is probably a top priority. The good news is, keeping up with repairs and making smart improvements are both proven ways to increase home value over time.
Whether you want to build equity or get top dollar when you sell, use the tips below to raise the value of your home.
1. Make it more attractive
Curb Appeal- how your home looks from the street — is your first chance to make a good impression.
A home’s exterior needs to make a prospective buyer want to walk through the front door.
Make sure existing landscaping is well-maintained. If your yard seems dull in comparison with your neighbors, consider planting flowers or repainting the front door.
Once the exterior looks good, focus on the kitchen and bathroom. When these two rooms are outdated, they can keep a property from reaching its highest valuation.
And you don’t have to spring for heated towel racks or marble floors, either. A minor kitchen remodel recoups 81% of its cost in added value on average, versus 53% for an upscale kitchen remodel with stone countertops, custom cabinets and commercial-grade appliances.
The same is true for bathrooms; a midrange remodel — new flooring and a few updated fixtures — delivers a 70% return on investment, while an upscale bathroom remodel — heated flooring, custom cabinets and designer fixtures — sees 56% on average.
2. Make it low-maintenance
Since many home buyers worry about buying a home that will need constant maintenance, replacing a major component before putting it up for sale — like the furnace, water heater or even the roof may calm fears of an emergency repair in the near future and help get you a higher price.
Improvements that make things easy to clean and maintain may also increase home value. Consider replacing easily stained carpet with hardwood floors or replace high-maintenance wood siding with vinyl siding.
3. Make it more efficient
Energy conservation features can have a significant impact on home value, depending on what area of the country you’re in, energy-efficient mortgages (EEMs) allow borrowers to take on additional debt to cover both the purchase of the home as well as energy-efficient upgrades.
Energy conservation features can have a significant impact on home value, especially in places that experience extreme heat or cold.”
Consider double-paned windows, enhanced attic insulation, LED lighting and efficient appliances as a way to increase home value and entice energy-conscious buyers.
4. Make it bigger
Bigger homes often command higher values, and even if an appraiser doesn’t officially acknowledge the full value of added space, a buyer will likely notice.
Adding a room is the obvious way to make your house bigger, but you can also create additional living space by creating an outside living/kitchen area.
5. Make it smarter
Safety-enhancing gadgets top the list of “smart” technologies buyers want in their new homes.
These safe and smart devices include thermostats, fire detectors, carbon monoxide detectors, security cameras, door locks and lighting.
While smart tech doesn’t always increase home value, it does add appeal.