Three Ways to Increase the Value of Your Home
My first year of home ownership looked something like this: two bathroom updates, complete basement renovation that added another living space, another bedroom, and a full bathroom. An updated backyard deck and patio, and gallons and gallons of paint! Although my wife and I had planned on most of those projects, we also started making a wish list of other things we wanted to do. Like update the staircase and loft hand-railing or swap carpet for hardwood floors or add crown molding in our vaulted ceiling and wainscot in our living room for a more updated and timeless look! With these ideas for updates and some further research we understood that there’s a fine line between making updates that add immediate resale value and investing in choices with zero ROI down the road.
Nearly three-quarters of homeowners plan to make home improvement projects in 2019, a 26% increase from 2018, the LightStream Home Improvement Survey finds. The survey, conducted by The Harris Poll, also finds that homeowners plan to spend $9,000 on average for a renovation project, a 32% increase from 2018. Additionally, 11% of homeowners plan to spend more than $25,000 on their homes in 2019, a 83% year-over-year increase.
However, as you contemplate ideas for home upgrades, small or major renovation projects, it is very important to understand your “comps.” - That is; to understand the market value of your home and the homes in your neighborhood. For example: If homes in your neighborhood top out at $350,000, and yours is already worth $325,000, you could lose money if your overall project costs are over $25,000. Therefore, it is always important to check the market against your home’s current value, then plan your renovations.
Nearly two-thirds (65%) of U.S. homeowners believe the value of their home will continue to rise over the next 10 years, according to a NerdWallet survey conducted online by The Harris Poll among over 1,400 homeowners in August 2018. As values continue to rise, this can alleviate some concerns as to whether you decide to invest in updates in your home!
That being said, and to no surprise, homeowners are most likely to spend money renovating or improving kitchens and bathrooms, and along with them, below are some other ways to increase the value of your home.
Updating Kitchens and Bathrooms
Kitchens and bathrooms are high-use, high-traffic areas and updating these spaces tend to provide the greatest ROI. In most cases this doesn’t mean that a complete renovation (complete demo down to the studs) is needed. Sometimes just some new tile with an updated sink, toilet, and vanity can really improve the space. As for kitchens, perhaps you do not want to invest in demolition of existing cabinetry and installation of new, maybe a face-lift is only needed. New doors and drawer faces and rehabilitation of existing cabinet carcasses can be a great solution to improve the look and feel of your kitchen. Taking on smaller projects such as these can still get the style and beauty you want but without breaking the bank.
One of the easiest and cheapest ways to enhance the curb appeal of your home is landscaping. Added flower beds with mulch or landscaping rock, having healthy tees, plants, and a healthy lawn.
Other projects that we can help you with is updating your front entry. Installing a new front door with a bright inviting color, building out the columns of your front porch with a craftsman style look or adding veneer stone, building a front deck over your existing concrete stoop and creating a nice handrail with outdoor lighting. Installing new windows with broader more craftsman style trims, or even giving your home a new clean look with updated siding and/or paint can really improve the look and add value to your home!
Re-configuring the Floor Plan
“Square footage has a huge impact on value,” states the director of operations at Hales and Associates in Overland Park, Kansas. Price per square foot is one way to help clients compare homes that are similar in style and upgrades.
Have you dreamed of creating a more open concept in your home by removing some walls and having your kitchen flow into the dining room or living room? This seems to be a common desire with most homeowners that are planning a renovation. As styles and trends change over time the open concept main level are what most new homes are built to, and homeowners who choose to renovate seem to look at this approach first. By removing walls and creating open spaces, this will certainly increase the value and appeal of your home.
It should also be considered in regards to cost, that removing a load bearing vs non-load bearing wall will have a significant difference in price. Load bearing wall removal will require structural beams to be installed and will require structural engineering prints, city inspections, and approvals.
Another important aspect you should consider depending on the size of your project is cost. If you can’t pay for home improvements in cash, be sure to choose the right method of financing for you. Some popular methods are home equity lines of credit (HELOC) which would be using your home’s equity to take out a loan and support the renovation cost. Another method would be the cash out refinance, which is ideal if you do not want to take out a second mortgage. Here are a couple reference links that provide more detail on these two methods:
There are so many unique and beautiful ways to add value to your home. Please reach out to us today for an estimate on a project idea you may have!
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