When it comes to increasing the value of your home, you should not spend home-improvement dollars willy-nilly; some upgrades and renovations are considered more valuable than others. Rather than putting your hard-earned cash down the garbage disposal in unnecessary expenses, consider the following checklist of home improvement items that are worth every penny.
Kitchen and bathroom upgrades typically generate the greatest return on investment. Sinking tens of thousands into these individual updates could be risky, but investing a few thousand into each room – enough to upgrade appliances, fixtures, flooring, countertops, cabinets, and slap on a fresh coat of paint – will automatically revitalize your home's appeal and increase the value of your home in the long run.
A home is a person's castle. Making your home feel like a castle will maximize its appeal to potential buyers.
Open floor plans and multi-use rooms currently hold one of the top spots on most potential buyers' priority lists (especially Millennials). You don't have to build a new wing to make your home feel like a big, open space. Knock down non-structural walls, remove kitchen islands, and add extra square footage of additional living space. Finished basements, attics, and decks go a long way to make your home feel larger.
While everyone's focus seems to be on current first-time home buyers (Millennials), an entire generation is purchasing and moving into the homes where they will retire and grow old – Baby Boomers.
More and more aging Americans are deciding to stay home longer. As a result, one feature on which these buyers are focused is accessibility. Accessible features include wider hallways and doorways, lever-style door handles, flush thresholds, and easily accessible showers. If you have a single-story home for sale, consider upgrading for the older generation.
Most buyers prefer moving into a low-maintenance home. When choosing upgrades, opt for those that require little work:
hardwood floors
vinyl siding
minimalist designs
native species in the yard
Windows, thermostats, HVAC systems, water heaters, insulation, and ductwork – are your systems up to date?
Efficiency upgrades are a low drama, high payoff move. Updated windows, smart thermostats, modern HVAC systems, water heaters, insulation, and ductwork help lower utility costs and make a home more comfortable year-round.
Buyers notice these improvements because they signal a well-maintained, move-in-ready home with fewer future expenses. Not flashy, but very effective when it comes to boosting value and appeal.
Consider your home's appeal on both the inside and the outside. Outdoors, curb appeal matters most. It's your house's first impression, and it should be a good one. Keep your yard tidy and vegetation pruned. Clean the gutters. Power-wash siding, sidewalks, and driveways. Add a fresh coat of paint and a new doormat.
Inside, your home should feel welcoming and calm. Keep clutter at bay and consider hiring a professional home stager to help you create flow and elegance for a desirable interior.
To maximize the value of your home, you should get rid of or fix anything that could raise potential questions (including blemishes, cracks, stains, shag carpet and dubious choices in wallpaper) before showing your home to potential buyers.
If you have lived in your home for many years, however, it is very likely you no longer notice these small imperfections. Ask an honest friend or relative, who has not spent much time in your home, to do a walk-through and point out every problem that might grab a potential buyer's attention.
Before sinking thousands into upgrades to increase the value of your home, find out the price at which homes sell in your neighborhood top-out. If sales prices on the most valuable properties in your neighborhood peak at $300,000, and yours is valued at $275,000 as-is, then you should not invest more than $25,000 into home repairs, renovations, or upgrades because you likely will not see much (if any) return on those dollars spent.