Increase Your Home Value With These 5 Easy Steps
By: Ian Golightly MBA, Realtor
Table Of Content:
- 1. Make Living Areas Standout
- 2. Break Down The Walls
- 3. Bathroom Upgrade
- 4. Don’t Forget About The Yard
- 5. Don’t Go Overboard To Where It Hurts The Wallet To Increase Your Home Value
If you are a homeowner, the best thing you can do financially is to increase your assets. The most common asset is real estate that can put extra dollars in your pocket later in the future. However, you want to do this project strategically. Many homeowners are doing it the wrong way, where the cost is greater than the benefit. The keyword is ‘benefit.’
For example, a few months ago, my neighbor told me a lady who lives a few houses down had told him that she spent in the ballpark of $40,000 for her kitchen renovation. Those words punched me in the throat, realizing that the house wouldn’t get reappraised with a $40,000 increase because of a kitchen makeover.
Before you shell out that much money, I would start with these 5 tips and then get a reappraisal to see what can be improved. Then you can put the final touches to maximize your home value.
1. Make Living Areas Standout
One of the most common issues with living areas is that they take up most of the central place within your home. That means that they are supposed to be used most of the time. The problem is when lighting is poor, and no one wants to use that area. The room almost becomes forgotten, and it develops to be dead space within your house. Most commonly, I like to call this the hoarding space where junk gets piled and never gets any attention.
So the biggest upgrade you can make with living space is to add more light. You can add skylights to key areas that you want to make stand out. If you enjoy natural light, take advantage of a skylight window. A well-lighted area will make it stand out as a key area for making it a more welcome space and a place for entertainment with family and friends.
2. Break Down The Walls
In recent years there’s a growing trend on breaking unneeded walls to create an open floor plan. Having a home with no or limited walls creates a feeling of openness. Before undertaking the project, make sure you talk to a licensed contractor while also keeping in mind asking for numerous bids on the project. If you like one company over the other and they are overpriced, show them your lower price bid and see if they can meet you in the middle.
3. Bathroom Upgrade
I think it’s funny that most of the time during home showings, people gravitate to the bathroom or the kitchen. Bathrooms have a way to grab attention because potential buyers are always wondering how well maintained are the pipes and what could be lurking under the surface after they close on the deal. It should be a priority on your list to inspect the bathroom drains periodically.
Any documentation to show your potential buyer may help them stress about the pipes if you plan to put your house for sale. Doing a few modifications, such as a newly updated toilet or a faucet that is sensor activated to save on water usage, may be appealing to your buyers.
4. Don’t Forget About The Yard
Most hate yard work, and for those reasons, it is one of the most common things that are missed. When you are selling your house, it is one of the most important things to put your attention to because that is one of the first things prospective buyers see. The simplest task at hand that you can do is to ensure that your yard is clean and well maintained.
Having a clear yard puts a clear vision in your possible buyer’s mind on what it would be like if they were living in your house. Depending on what kind of landscaping is maintained on the property, it can add an additional 10-15% to your home value.
One upgrade that most people look for, is a patio that connects to the home. Most people like to invite friends, family, and even co-workers to open lounging areas on nice warm days. If you have a patio already, you may be ahead of the game versus the other houses for sale that don’t have a patio or a place to entertain guests outside. Historically, a patio can also increase a home value roughly by 10%.
5. Don’t Go Overboard To Where It Hurts The Wallet To Increase Your Home Value
You must keep in mind buyers are buying because of the location and not just for all the bells and whistles. The only reason why I bought the house that I’m living in now is that I’m literally 10min away from the office versus the hour drive I had to make heading to central Nashville.
If you put in a lot of money and time into your projects, make sure you increase your ask price at a reasonable market increase. Houses that are rehabbed in less appealing areas may have a hard time selling and your home value may be ‘average’.
If you have the financial means, it will better to hire a licensed appraiser to tell you the value of your home to-date. There are several ways to increase your home value without putting that much of a dent in your wallet.