5 Affordable Renovations to Increase Home Value
You’ve put a lot of time, energy, and money into your house.Now how can you take that equity and use it to continue to increase your home value?
Using a Home Equity Line of Credit (HELOC) to finance home renovations is a great place to start; however, not all renovation projects are created equal. Whether you’re looking to immediately sell or want to improve the future value of your home, here are some budget-friendly project ideas to consider that will help maximize your return on investment.
Want to use a HELOC for your renovation project? Learn more.
Upgrade FlooringWhere they put their feet is often the first thing a potential buyer notices when stepping into a home. Replacing flooring might seem like a large undertaking, but first impressions count.
Depending on your comfort level and experience, you may even save a little extra by going the DIY route instead of using a professional installer. With online tutorials and easy-to-install options, upgrading flooring doesn’t have to be out of reach. It is important, however, not to skimp on quality. Buyers can be immediately turned off if they believe the new flooring feels cheap.
Another way to cut costs: replace flooring in the main areas of the home and simply clean carpets in the bedrooms. You can rent a carpet cleaning machine or hire a professional cleaning company. A fresh smell and reducing the look of wear and tear can help buyers feel at home in what should be relaxing bedroom spaces.
Update FixturesOne way to refresh a home before going on the market is to update kitchen, lighting and bathroom fixtures. This is another project that can often be done without the extra cost of professional help.
Go through your home with a critical eye and mark down what items could use a modern touch. This is one area where observing the latest trend could be to your benefit. Are buyers seeking nickel finishes? Copper? Make sure that you keep other items in the room in mind, such as contrasting appliances in the kitchen, to keep a cohesive appearance. Don’t forget your front door lighting. You might consider a modern exterior light fixture along with a fresh coat of paint to the door and trim.
Minor Bathroom RemodelOverhauling an entire bathroom can be costly, but simple updates like new hardware or replacing old caulking around the bathtub can go a long way. Replacing the tub insert or updating the flooring to tile can also add value to your home. As buyers continue to prioritize storage, replacing the vanity is another bigger ticket item with value.
Outdoor SpaceLaying new sod or installing new fencing make an immediate impact. For those without a green thumb, you might find it worthwhile to spend some of your equity on hiring a landscape designer or local nursery.
Adding an outdoor entertainment feature is another way to add value and interest. Projects like a new fire pit, a new deck or patio, or a cement pad with a pergola allow buyers to envision time spent outdoors hosting and dining.
Tips on UpdatingUnderstand the home values in your area. You don’t want to make updates that make your home significantly more valuable than any other home in your neighborhood. Updates should be in proportion to your selling price so you can recoup the money you’ve invested. If making updates to sell in the near future, avoid selecting materials based on personal preference. Keep in mind you’re making these updates for someone else. While you may love an outrageous pattern on your granite countertops, that doesn’t mean potential sellers have the same taste. Go for classic colors and timeless fixtures.
Working with a real estate expert can help you decide what to update and what will give you the most return.