10 Tips to Increase Your Home’s Value
You don’t have control over the real estate market, but you can always increase the value of your home. Prices in homes can go up and down, but you can retain the most value at any given time with maintenance, improvements and wise financial decisions. Here are 10 tips to help improve the value of your home.
- Start paying more toward your home loan principal. The first and easiest way to increase your equity is to reduce the principal on your home loan. Paying a little extra every month can go a long way in reducing what you owe on your home. Over a few years, this can reduce your principal by thousands and reduce what you are paying in interest each month.
- Keep your home clean. Before you worry about investing money in your home, start with the basics. Keeping your home clean is inexpensive and can prevent many issues with staining and deterioration.
- Have a home inspection completed. Your home most likely went through an inspection when you bought it, but if that was years ago, things may have changed. Before you consider doing home improvements, you should know if there are any major issues with your home’s foundation, structure or systems. It would be counterproductive to invest money in aesthetic aspects if there are major structural issues lurking beneath.
- Make a plan. Once you know if any structural issues need to be fixed, you can make a plan for remodeling or home improvements. If your goal is to sell your home in two, three or five years, then you can determine how much you can afford to spend over that time period. Knowing your timeline and budget can help you prioritize which projects are most beneficial and will enhance your home’s value the most.
- Decide whether selling is your best option. If you were planning to sell your starter home to buy a larger home, consider the costs of buying a new home versus renovating your existing home. If you like your location, it may be best to put the money into making this home into your dream home with additions and other renovations.
- Prioritize your projects. Consider the cost versus value of renovations. How much value will the improvement add to your home? If selling your home is the long-term goal, you want to invest in projects that will add the most value for the money, instead of focusing on projects that match your personal tastes.
- Focus on one room at a time. Don’t make the mistake of starting too many projects at once. Focus your efforts on one project or room at a time to minimize mess and stress.
- Kitchen remodels. Kitchen updates are a common place to start when focusing on increasing home value. Stick with improvements that will enhance the space and efficiency, versus high-end materials and appliances.
- Bathroom updates. After the kitchen, bathrooms are the next focus areas for value enhancement. Inexpensive options with high returns are replacing water and light fixtures for an updated look.
- Landscaping for curb appeal. Don’t forget the outside of your home. Curb appeal is always a big factor in how desirable your home will be to buyers. Putting effort into your landscaping is a cost-effective option that can bring big dividends when it comes time to sell.
For most people, their home is the largest asset they will ever own. Make smart choices when it comes to investing in improvements to increase the value of your home.