These Simple Steps Will Increase the Value of Your Home

For a long time, real estate has been America’s favorite long-term investment. After all, real estate will typically reliably appreciate over time. If you’ve decided that it’s time to sell, you may be considering how you can boost your home’s value quickly. 

Increasing your home’s value will likely earn you a higher profit from buyers. In addition, it could mean you have more equity to borrow against if you’re seeking a home equity loan. When your home value increases, so will your net worth since your home is likely one of your greatest assets. 

Even if you aren’t looking to sell, there’s still a benefit to doing small and large-scale projects around the house. “You get to enjoy your home more, even if you’re not realizing the appreciation value,” says John Oliveira, a real estate agent with Douglas Elliman in Westchester, New York. “You’re not monetizing by selling, but you’re able to enjoy it with your dream kitchen or spa bathroom.” 

Good curb appeal can go a long way. “The first impression that someone notices is the outside first,” Oliveira says. “It sets the tone for the rest of the house.”

Exterior changes can often feel daunting and carry generous price tags. Still, homeowners can easily make small, impactful changes on a budget. For one, a focus on tidying up improves curb appeal. Sweep the front porch, clean the gutters, and get rid of any overgrowth. A well-maintained front lawn will always look better than one that clearly hasn’t been touched in months. 

“Less is more,” Oliveira continues. “You don’t want to overcrowd your front yard with too many plants and bushes, as it can be overwhelming.” He also suggests cleaning up any peeling or chipping paint, broken siding and sloping porches. For an inexpensive but impressive upgrade, you can put a fresh coat of paint on your front door and swap out the hardware. 

Kitchens and bathrooms are often considered the most valuable rooms in a home. “Every other room in the house is basically four walls and a floor, maybe some lighting,” Oliveira explains. “From a value perspective, it’s very easy to change the look of a bedroom or living room. In a kitchen and bathroom, it really matters what fixtures are chosen – the hardware, the cabinets, and appliances.” 

Those fixtures and materials are what drives the cost of the home. So if you are looking to make an impactful upgrade to increase the value of your property, the kitchen and bathrooms are a good place to start. 

“The kitchen and bathrooms can get a refreshed look by giving it a coat of paint,” Oliveira suggests. But don’t just paint the walls. Focus on the moldings and cabinets, too. “It can really transform the room for a relatively low budget and can have a really good return.”

Other cost-effective updates can include changing out the hardware, swapping out the bathroom mirror and upgrading light fixtures. Investments such as new appliances and countertops will cost more, but might be more valuable to potential buyers. 

Importantly, you should always know your DIY limits. Small, simple changes are probably easy enough that you won’t have to hire someone for the job. However, bigger jobs such as tile work, electric and plumbing should be kept to the professionals if you don’t know how to do those things yourself. After all, you may end up spending even more money trying to fix a job that you weren’t equipped to complete. 

Having an energy-efficient home is not just about its environmental benefits. It also can save you a good chunk of money every year on electric, heating and cooling bills. When your home is more energy efficient, its systems simply don’t have to work as hard. 

“Windows and doors are a big concern,” Oliveira says. “That’s a big thing that buyers are looking for. It’s not the first thing that’s noticed, but by the time we’re finishing up the first tour, they’re paying attention and the question of how old the windows are comes up.” 

Generally speaking, the newer the windows in a home are, the more energy efficient they’re going to be. According to the Environmental Protection Agency, a household can save an average of 13% on their energy bills when they replace their single-pane windows with Energy Star-certified windows. 

Since new windows and doors can be an expensive up-front cost, buyers appreciate when a home already has those in place. Moreover, they may be willing to spend a little more to not go through the trouble of replacing windows later down the line. 

Other energy-efficient swaps homeowners can make might include sealing the openings around windows and doors, upgrading their appliances, replacing their light bulbs with LED lights, and adding or repairing spray foam insulation in the attic. 

Even if you’re not looking to sell your home, making these changes can add great value and help you save money on your energy bills. 

The EPA estimates that an Energy Star-certified heat pump water heater can save a family of four more than $550 a year. Meanwhile, the Department of Energy claims that the typical American household could be spending 10%-20% of their annual energy costs on wasted energy from drafts, air leaks, and outdated heating and cooling systems. You may also be eligible for certain tax credits available to homeowners who’ve made energy-efficient improvements to their home. 

Oliveira says that the options are endless regarding energy-efficient upgrades, “but sticking to the basics will go a long way.” 

Like curb appeal, the way your home looks on the inside will make an impactful first impression on buyers. So much so, that taking the time to clean and declutter – which is completely free – can make a big difference. Taking the time to declutter can increase the interest that buyers express in your home, and thus the number of showings you’ll have. 

“I’ve had great success with clients that have decluttered and painted,” Oliveira says. “They’ve had good rates of return.” 

If you’re planning on painting with the intent to make your home more sellable, most professionals suggest sticking with neutral colors. This will allow buyers to see the potential of your home. Colors such as white, beige and gray will be less distracting to buyers than bright or unique colors. 

You may also want to spend a little bit of money incorporating common, popular interior design trends in your home such as Scandinavian or organic modern design. Making some small changes around your home could bring the space up to date and make the home feel more welcoming. Since these trends are common, items that fit that style are pretty easy to find. 

Sellers may choose to hire a home stager instead of going the DIY route. According to the National Association of Realtors, “81% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.” For the same reason, it’s important to paint a neutral color when preparing to sell. 

Home staging can cost a pretty penny. Typically, the cost includes the design consultation and furniture rental, as well as delivery, set up and removal. According to Better Homes & Gardens, a full-home staging can cost about $1,800 per month. Still, if you’re in a higher income area, such as New York City, that price could be as much as $16,000. 

But the investment might be worth it. Architectural Digest reports that 75% of sellers saw a 5%-15% increase over asking price when they professionally staged their home. Staged homes also typically spend less time on the market. 

If you’re looking to make small, inexpensive updates, you’ll want to stick with DIY-friendly home improvement projects. A DIY project immediately removes one of the most expensive line items in a home upgrade: labor. Many of these projects can be easily taught on the internet and through YouTube. There is a swath of information on how to do simple things around the home without hiring a professional. 

Projects you can do for cheap might include painting walls, cabinets, moldings and garage doors. You can also refresh the hardware and light fixtures in your bathrooms and kitchen and remove outdated features. 

Deciding on whether or not you will want to upgrade your plumbing and electric before a sale will probably come down to the cost benefit analysis. The cost of the upgrade and the value that will be added to your home will vary greatly depending on the size of your home, the breadth of the project and your location. 

It’s suggested that you call around to multiple plumbing and electrical companies to get quotes. This will help you get a sense for what a project will cost. It will also help you find the best price if you choose to go through with the upgrade. Then, you can talk with your real estate agent regarding how much your return on investment will improve. 

You may find that you could just break even on the cost of the project and the increase in value. Still, your home may sit on the market for significantly less time than if you didn’t invest the time and money. 

If you aren’t looking to sell your home, upgrading your plumbing and electrical will be based on whether or not their current state impacts your everyday life. “The tell tale sign is if you’re having issues,” Oliveira says. “Breakers that keep tripping, frequent clogs in the sink or in the waste line – these are signs that your plumbing and electricity need some attention and upgrading.”

By regularly maintaining your home through upgrades over the course of time, you can improve the value of your most expensive asset. It’s always good practice to take good care of your home because it isn’t just a financial investment. It’s also an investment in your lifestyle. 

If you’re getting ready to sell, you might want to think about making a few changes to increase value and net a higher home sales price. 

Some of these changes will be inexpensive and easy to complete yourself, but many home projects may require the services of a professional. When in doubt, always consult an expert to get an idea of what needs to be completed and how much it will cost. Then, talk with your real estate agent to gauge how much that change will impact the value of your home.