The value that you have in your home is single most important reason why you own instead of renting a home. In the recent economy of falling house values and unstable housing market statistics, every home owner should know how to put more value back into their homes.
Although making home improvements is not a sure-fire way to increase the value, it will at the very least make you more competitive against your competition.
Here are 15 tips to increase the value of your home and enjoy the rewards when it is time to sell.
1.) Update kitchen appliances: The most sought after room in your home is the kitchen. It is worth the most per square foot and will make the difference of your home appealing to buyers or not. If your appliances are more than 3-5 years old consider updating them to the comfortability of your wallet. A newer model, a more designer finish, or more features will help home buyers take a second glance at your kitchen. For top of the line appliances consider stainless steel and professional series lines.
2.) Kitchen cabinetry makes the look: When you walk into a kitchen the first thing you notice is the cabinets. Cabinetry is at the top of the percentage of kitchen costs, but also shows the most return. Opt for wood over laminate surfaces and add custom features like crown molding, wine racks, glazing, and custom woodworking to set your kitchen apart from your competition.When you walk into a kitchen the first thing you notice is the cabinets. Cabinetry is at the top of the percentage of kitchen costs, but also shows the most return. Opt for wood over laminate surfaces and add custom features like crown molding, wine racks, glazing, and custom woodworking to set your kitchen apart from your competition.
3.) Add value by upgrading your countertops: Any room where you have countertops – kitchen, bathroom, bars, or utility rooms the more money you can spend in higher end countertops - the better. Plastic laminate countertops are considered the lower end grade, solid surfacing, concrete and granite is considered to be the higher end grade.
4.) Flooring is a forgotten upgrade: The rule of thumb for flooring is the more resilient and long lasting, the higher the upgrade, but the higher return is on investment (ROI). Vinyl flooring and low end carpet is at the bottom of the upgrade spectrum. Consider wood, tile, and natural stone for flooring options to add value to your home.
5.) Upgrade plumbing fixtures in kitchen and bathrooms: If your plumbing fixtures are more than 10 years old, consider upgrading them. If you have standard grade fixtures, such as chrome finish, opt for higher end finishes and materials. Brushed nickel, antique copper and brass fixtures are relatively inexpensive to replace. At kitchen sinks, choose plumbing fixture collections that offer matching faucet, control, and sink sprayer. Similarly in bathrooms, choose bathtub/shower/and sink controls that coordinate for a unified look throughout your home.
6.) Master bedrooms should feel like a retreat: The master bedroom or suite as some like to refer to it is a high commodity for home buyers. Upgrade flat ceilings to raised tray ceilings and allow for several lighting options. Recessed lighting with dimmers, lighting wall sconces help create an ambiance that has a high value in appeal and for the value of your home.
7.) Upgrade master bathroom with spa-like features: Part of the master bedroom is the master bathroom. Buyers want to have spa features from the shower to the tub. Similarly to the kitchen, put upgrades where you can most afford it. Upgraded tiled floors and showers will add value over pre manufactured units. Jetted soaking tubs, multisprayer showers and large square footage will also add value to your overall home.
8.) State of art audio and sound: Consider adding surround sound systems in your living areas as well as master bedroom area for a notch above your competition. If you are selling electronics with your home, plasma and flat screen televisions are a plus and media rooms are now becoming well sought after. Add seating areas for multiple screen viewing and add theater sound if considering a media room. These upgrades will be an amenity that adds value and buyer appeal.
9.) Eco-friendly homes bring in a higher value: In this green modern age, eco conscious upgrades have a big return on investment. From water saving plumbing fixtures to tankless hot water heaters, investing in the earth can add value to your home. Choose rapidly renewable resources for finishes like bamboo flooring and opt for systems that save on energy costs. Regardless of the method, green living upgrades are always worth the investment.
10.) A fully usable garage is an asset: A garage can add usable storage space for the home buyer as well as dry, clean area for parking cars. All homes don’t have garages and therefore can add value on to your home. If your home is on the market, spend time cleaning and organizing your garage so it can be shown. Install garage wall or ceiling organizing shelves to fully take advantage of vertical storage and space.
11.) Invest in curb appeal: To be able to meet the demands of the average home buyer you will need to create curb appeal. A well manicured lawn, trimmed landscaping and clean drive and sidewalks will help bring greater buyer appeal, and in turn will add value on to your home. Keep your flower beds free of weeds and full of thriving and colorful plants. Nothing says ‘buy me’ like a front yard that has quality upkeep behind it.
12.) Have fully functioning irrigation system: The more ways you can add convenience of time and energy to a home buyer, the greater appeal is created for your home. An irrigation system that works properly and covers the full yard can add value. Consider having a maintenance check by an irrigation professional that can service and recommend the proper maintenance of your irrigation system.
13.) The more closets the better: At the top of buyers’ lists is always storage. The more you can provide the more value you add on to your home price. Make sure closets are fully functioning and are not being used to hold so many belongings that a home buyer can’t see how much space the closet offers. When choosing how to upgrade your home, storage is one of the easiest and often overlooked suggestions.
14.) A quality roof is a plus: The roof of your home protects and beautifies the structure beneath. A quality roof will add value to your home and reduce the risk of damage in the near future. For roofs older than 15 years, consider having a roofer inspect and possibly replace. Upgrade from asphalt shingles to clay tiles, copper, slate or standing metal seam to add durability and value.
15.) Windows are for more than viewing: Your windows are the source for your light, but also the source for conditioned air gain and loss. Upgrade to windows with higher R values to resist heat and cold transfer from the outdoors. Double paned windows, windows with integral window treatments and insulated varieties all equate to saving energy and therefore will add more value to your home.
Here are the Top Three Suggestions from Zillow.
In its 10 years of existence, online real estate database Zillow has collected an unfathomable amount of information on housing prices. In the new book "Zillow Talk: The New Rules of Real Estate," CEO Spencer Rascoff and chief economist Stan Humphries put that data to use by sharing ways to get the most value out of a home. Mr. Humphries says, “We’re interested in converting real estate from an area of folklore into fact.” Here he shares some of his favorite tips for navigating today’s real estate market.
Redo the bathroom, not the kitchen
“It’s always been conventional wisdom that the best remodel you could do was the kitchen,” says Humphries. “We actually crunched an enormous amount of data...what we found is actually it’s the bathroom remodel that adds the most value to a house.”
According to Humphries it makes the most logical sense because with a bathroom remodel functionality is being added to the house whereas kitchen upgrades are often more about fashion.
According to Zillow's data a mid-range $3,000 bathroom remodel results in a $1.71 increase in home value for every $1.00 spend on renovation.
Plus “when people come to stay with you, you’re going to be a lot happier that you have a nicer bathroom than kitchen.” Kitchen renovations offer among the lowest returns on investment. Both mid range and upscale work on the kitchen recover only about half of their investment.
Just don't invest too much money in the bathroom; upscale $12,000 bathroom upgrades result only in an $0.87 increase in home value for every $1.00 spent.
Home sales reach their peak in June, during the last week of that month residential real estate transactions are 40% higher than average. But when is the right time to list your home?
The home season starts to crank up in January and February, but to get the most bang for your buck, you might want to list your house during the last two weeks of March.
Selling in the last weeks of March, before the peak in agent contacts and after the peak of newly listed homes in February puts your home in the sweet-spot where it's likely to be seen quickly and not get lost within a flood of new listings.
Humphries writes to "put your home on the market after you fill out your NCAA March Madness basketball brackets, but before someone slips on an ivy-green jacket at the Masters Golf Tournament."
Psychologically Price Your Home
Ending your home price in a ‘9’ is incredibly beneficial. Mr Humphries says, “If you were going to sell your house for $150,000, just pricing it down by $1000 and selling it for $149,000 ends up in you making $2175 more than you would if you priced it at $150,000.” The '9' dynamic works for houses at all price-points.
In the majority of cases, home prices that end in a '9' sell for more for a home of the same relative value that ends in a '0.' The risk that the seller takes on by cutting their home price by $1,000 usually results in gaining more than $1,000 over asking.