Many people plan on making improvements around the house prior to selling their home. It can cost a lot to make home improvements, which is why it’s so important to consider whether or not each project is worth it. Some home improvement projects can make your home more valuable, whereas others will not. Here’s how to increase the value of your home:
Which Home Improvements Add the Most Value?
If you’re planning on selling, focus on making improvements that will add the most value to your home. Some of the home improvements that increase the value of your home the most are:
- Minor kitchen and bathroom upgrades
- Garage door replacement
- Energy efficient upgrades
Minor Kitchen and Bathroom Upgrades
The kitchen and bathrooms are known as buyer “hot spots,” which means buyers tend to focus on these rooms when deciding whether or not to buy a house. Making minor upgrades in these rooms will not only attract more buyers, but it will also increase the value of your home.
Minor kitchen and bathroom upgrades that add the most value include:
- New fixtures
- New appliances
- Modern backsplash
- Replacing hardware
- Painting/Replacing cabinet doors
These upgrades can completely change the look of your kitchen and bathroom and add significant value to your home.
Landscaping will improve the curb appeal of your home, which will attract more buyers and increase the home’s value.
You don’t need to make major changes to your landscaping in order to increase your home’s value. Focus on trimming overgrown shrubs, adding splashes of color, and laying new sod. These improvements won’t cost much, but they add significant value to your home.
Garage Door Replacement
Installing a new garage door will instantly make the exterior of your home look new and updated. This is an inexpensive improvement that can add a lot of value to your home. Plus, this project can be completed without the help of a professional!
Energy Efficient Upgrades
Energy efficient homes sell for more than homes without energy efficient upgrades. If you’re planning on selling, improve the energy efficiency of your home by purchasing new energy efficient appliances, sealing air leaks, and installing a new programmable thermostat.
Which Home Improvements Add the Least Value?
Homeowners should avoid making improvements that add little or no value to their home. The home improvements that add the least value are:
- Extravagant light fixtures
- Major kitchen and bathroom renovations
- New carpet installation
Extravagant Light Fixtures
Replacing the light fixtures may seem like a simple way to attract more buyers, but it actually doesn’t add any value to your home. Extravagant light fixtures are distracting, and many buyers may not like the style you have chosen. Because of this, it’s best to avoid upgrading to over-the-top light fixtures before selling your home.
Major Kitchen and Bathroom Renovations
Major renovations will increase the value of your home, but not enough for homeowners to recoup their costs. For example, the average homeowner spends about $63,000 on a major kitchen renovation. However, this kitchen renovation only adds about $37,000 in value, which means the homeowner only recoups about 59% of their costs.
Major renovations may make your home more appealing to buyers, but they are not worth the cost.
New Carpet Installation
Installing new carpet is expensive, but this is one improvement that will not add any value to your home. If you want to install new flooring, it’s best to choose laminate or hardwood as opposed to carpet.
Most buyers want a move-in ready home, but if there is wallpaper on the walls, they may want to remove it prior to moving in. Buyers know how difficult it is to remove wallpaper, so they may pass on your home simply to avoid this headache. If you want to freshen up the walls inside your home, choose neutral-colored paint instead of wallpaper.
What Adds Value to a Home’s Appraisal?
Lenders will not approve a loan for an amount that is much higher than the appraised value of a home. For this reason, you may have trouble selling your home if its appraised value is too low.
Property appraisers consider many factors when calculating the value of a home, including:
- Recent comparable sales
- Square footage
- Floor plan
- Age of home
Most of these factors are out of your control. For example, there’s no way for you to change the age or location of your home. However, making upgrades can make your home look more appealing and valuable, which could increase its appraised value.
Use These Tips to Maximize the Value of Your Home
Every homeowner wants to sell their home for as much as possible, but few understand what needs to be done in order to achieve this goal. Fortunately, you now have the information you need to prepare your home for sale. By following these tips, you can make your home more attractive to buyers and maximize its value!