1. Make it more attractive
Curb appeal — how your home looks from the street — is your first chance to make a good impression, says James Murrett, president of the Appraisal Institute, a professional association for real estate appraisers. A home’s exterior needs to make a prospective buyer want to walk through the front door.
Make sure existing landscaping is well-maintained. If your yard seems dull in comparison with your neighbors, consider planting flowers or ornamental plants.
Once the exterior looks good, focus on the kitchen. When these two rooms are outdated, they can keep a property from reaching its highest valuation, Lori Noble, a senior residential appraiser (SRA) in Charleston, West Virginia, said in an email.
A minor kitchen remodel recoups 81% of its cost in added value on average, and a 53% for an upscale kitchen remodel with stone countertops, custom cabinets and commercial-grade appliances, according to Remodeling magazine’s “2018 Cost vs. Value Report.”
The same is true for bathrooms; a midrange remodel — new flooring and a few updated fixtures — delivers a 70% return on investment, while an upscale bathroom remodel — heated flooring, custom cabinets and designer fixtures — sees 56% on average.
2. Make it low-maintenance
Since many home buyers worry about buying a home that will need constant maintenance, replacing a major component before putting it up for sale — like the furnace, water heater or even the roof — may calm fears of an emergency repair in the near future and help get you a higher price.
One component that is largely overlooked is windows. It’s no surprise that there are costs associated with home improvement projects and upgrades, but homeowners can rest easy knowing that window replacement projects can have a big payoff. In fact, new vinyl windows can return homeowners over 73% of the project cost upon resale.* Some prospective home buyers might turn away if they know a home’s windows need to or are close to needing replacement. If you’re on the fence about updating the windows in your home, don’t wait until you’re ready to sell — enjoy the benefits of new windows while you are living there — and then enjoy the return in your investment.
Improvements that make things easy to clean and maintain may also increase home value. Consider replacing easily stained carpet with hardwood floors or replace high-maintenance wood siding with vinyl siding.
3. Make it more efficient
Energy conservation features can have a significant impact on home value, depending on what area of the country you're in, Joanne Theunissen, chair of the National Association of Home Builders Remodelers, said in an email. Energy-efficient mortgages (EEMs) allow borrowers to take on additional debt to cover both the purchase of the home as well as energy-efficient upgrades. EEMs can also offer lower mortgage rates to increase purchasing power, according to Energy.gov.
One of the ways to do this, is to install solar panels on your roof. Thirty-nine percent of agents surveyed recently by the National Association of Realtors said solar panels increased perceived property value.
Schedule an assessment with a certified solar expert to determine where your home is wasting energy and which upgrades will save you the most money.
4. Make it bigger
“Square footage has a huge impact on value,” Angie Martin, director of operations at Hales and Associates in Overland Park, Kansas, said in an email. Price per square foot is one way she helps clients compare homes that are similar in style and upgrades.
Bigger homes often command higher values, and even if an appraiser doesn’t officially acknowledge the full value of added space, a buyer will likely notice.
Adding a room is the obvious way to make your house bigger, but you can also create additional living space by finishing the basement or building a deck.
5. Make it smarter
Safety-enhancing gadgets top the list of “smart” technologies buyers want in their new homes, according to a 2018 survey by Coldwell Banker. These safe and smart devices include thermostats, fire detectors, carbon monoxide detectors, security cameras, door locks and lighting.
While smart tech doesn’t always increase home value, it does add appeal, Tavia Galvin, a licensed Realtor in Arvada, Colorado, said in an email.
Those who see themselves as “techies” are more likely to pay more for these items, Martin said.
Unlike replacing the roof or renovating the bathroom, you can usually install these devices yourself for about $1,000 or less.
