How to Improve a Home's Value
Buying a home is typically the biggest financial investment most individuals will make in their lifetimes. Home ownership requires care and often modifications to maintain and/or increase market value. Homeowners focused on increasing home value should make updates that allow for the best rates of return while staying within the scale of the neighborhood. Updates solely based on personal preference may add personal comfort but not necessarily increase the home's market value. For homeowners not planning to sell their homes, this may not be a concern. However, for homeowners planning to sell, careful consideration should be used when making modifications necessary for resale purposes. Does this Spark an idea?
Instructions
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Work on your home's curb appeal by keeping the grass cut and flowerbeds free of weeds. If the exterior needs work, consider installing high quality vinyl siding or repaint your exterior. Replace windows, doors and roofing with energy efficient replacements if needed. Consider adding more insulation to help reduce heating and cooling costs.
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Add value by giving the home an interior face-lift with paint and new flooring. Paint is a cost-effective way to update and create a fresh look while increasing market value. Flooring is another feature that provides excellent rates of return. Floors that are lacking in appearance should be updated or professionally serviced. In addition, if a home is fully carpeted but the majority of homes in the neighborhood have wood floors, removing the carpet and updating with wood would likely increase both value and competitiveness.
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Renovate your kitchen, as an updated kitchen provides one of the best rates of return. When updating the kitchen, be sure to consider the scale of the neighborhood. If other homes in the neighborhood typically have granite or marble counter tops and stainless steel appliances, upgrade using like materials. If high-end materials are not typically used in within the neighborhood's kitchens, expect to eat some of the cost of installing them when you sell.
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Remodel the existing bathroom(s) or add one to the house. Bathrooms, like kitchens, provide high rates of return on investment. If your bathrooms would benefit from some modifications, consider replacing your sinks, toilets, hardware, lighting and cabinetry. On average, homeowners who make the update themselves can expect as much as a 200 percent return on the investment, or about 75 percent if done by a professional contractor.
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Install a deck and enjoy the benefit of capturing most of the construction costs in the home's resale value. A deck not only adds an entertainment and relaxation component, but also significantly improves a home's curb appeal and overall market value.
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Tips & Warnings
Make a list of what needs to be done and prioritize the tasks.
Perform any necessary updates before putting your home on the market.
