The values of Americans’ homes are rising with the average increase approximately 7% more than last year. Some parts of the country are seeing double digit increases in value.
If you want to sell your home soon, you may want to do some smart remodeling to increase your equity and property value. There are many attractive home remodeling loans available to help homeowners make home improvements that help increase their property value and morale in the family.
Your home stands as a valuable asset, and enhancing it further can elevate its overall worth. Therefore, it becomes crucial to concentrate on maximizing the impact of your renovation budget, emphasizing projects that provide a commendable return on investment or bring substantial and proven value to your home. Whether your renovation objective is geared towards selling your home in the near future or creating a more comfortable living space for yourself, here are eight renovations of high value to prioritize.
We consulted with some home renovation experts, and they say the following ways are your best bets:
#1 Kitchen Is King!
People have long focused on an upgraded kitchen. But it holds even more importance for many first-time home buyers in 2024. A modern, updated kitchen is a top item for many millennial’s. But if you are going to sell your home soon, it is not necessary in most cases to spend a lot. For as little as $5k, you can add new appliances, new counter-top and flooring, and a back-splash. You may not even need to replace cabinets; simply repainting them can be all you need to do.
Take a strong look at stainless steel appliances in the kitchen that indicate the kitchen has been updated. Also, quartz counter-tops are becoming popular and are starting to challenge marble and granite as the top replacement in updated kitchens.
#2 More Space
Increasing the amount of living space in your home that is usable will increase your home’s value and equity. The best way to do that is to finish your basement if you have one. You can add 500 to 1,000 square feet of living space to the property. Many younger buyers will look at the added living space as a second family room or home office. Others may like to use the added living space as an in-law suite.
#3 Energy Efficiency
Lowering the energy costs of your home are a major selling point in many markets, especially in places with high electric bills in summer and/or winter. If you replace your windows with energy efficient ones that are Energy Star rated, you can see a substantial reduction in your energy bills. Also, if your AC is old and out of date, adding a modern unit can also drop your energy bills. Adding an efficient and effective new AC unit is especially helpful for selling in the warmer climates of Texas and Florida. You can easily reduce your monthly cooling costs by 1/3 or more with a more efficient air conditioner.
#4 Paint, Paint, Paint!
Paint is still a good upgrade to improve the value of the property. It makes it look better and protects surfaces from wear and tear. If you are getting ready to sell the property, you do not need to spend $20,000 to have the entire home repainted. Just focus on the higher traffic areas at first, such as the kitchen and bathrooms. Go for higher quality paints, and neutral color schemes that most people can live with are the best options.
#5 Outdoor Upgrades
We are not necessarily talking about a pool, either. You may want to add a deck or patio with a built in or freestanding grill. Also consider an outdoor firepit that is surrounded by a simple seating arrangement.
#6 Smart Technology
This can be a good investment if it is really high tech and smart. A big loser in recent years was the fully wired audiovisual system. Now that such systems are available wirelessly, these types of upgrades have lost a lot of value. But there are some smart devices that can add value.
One of them is a programmable thermostat, such as the Nest. They can be controlled with a computer or smartphone. Another good option is a whole house generator. Power failures are common and there are stationary generators that can power the needs of an entire home for days, for about $10,000.
#7 Keep It Stress Free with This Upgrade
Many home buyers will be spending a lot of their available cash with their down payment. So, if you want to sell your home and get a better price, consider replacing the roof it is more than 10 years old. No one wants to worry about water damage when it rains, and you are more likely to sell the home faster with a new, attractive roof.
#8 Upgrade Master Bathroom
You can make reasonable upgrades to the master bath for no more than a few thousand dollars. Consider a new toilet, large, glass shower and new fixtures for a sleek, modern look. Bathtubs are out of style for a lot of home buyers these days; people tend to prefer the big, spacious shower where they spend so much of their time.
How to Increase Your Home Value in 2024
Buyers’ preferences underwent significant shifts during the pandemic, and this evolving trend has persisted through 2023. Notably, incorporating a home office into your residence, on average, can contribute to a 5-10% increase in the selling price of your house.
- Boosting Your Home’s Value in the Coming Year
- Expanding Space or Introducing an Accessory Dwelling Unit (ADU)
- Enhancing the overall spaciousness of your home contributes to an increase in its value.
- Enhancing Interior Aesthetics and Exterior Curb Appeal
- Investing in the visual appeal of both the interior and exterior of your home enhances its overall value.
- Incorporating Smart Technology into Your Home
- The integration of smart technology elevates your home’s value by embracing modern advancements.
- Implementing Energy-Efficient Upgrades and Solar Panels
- Efforts to enhance energy efficiency, including the installation of solar panels, positively impact your home’s value.
- Upgrading Systems and Appliances
- Updating and upgrading essential systems and appliances further elevates your home’s overall value.
Can You Use a Home Equity Loan to Pay for Home Improvements?
A home equity loan is popular financial program for homeowners to pay for home renovations and construction. These home improvement loans enable you to utilize the equity you’ve built in your home as collateral to assure the lender of your loan repayment. In contrast, a unsecured personal loan would be the alternative to getting a 2nd mortgage, but the rates are higher and the loan amounts are smaller because of the risk factor.
What Are Appraisers Looking for to Maximize Home Value?
Appraisers assess various factors, including the overall condition, location, age, size, unique features, and any enhancements made to the home. While certain aspects, such as location, age, and size, are beyond your control, they significantly influence the appraisal process.