Real estate is one of the best investments that an individual can make in their lifetime. People tend to buy a home, fix it up to increase its value, and eventually sell it so that they can upgrade or make a profit. It’s a foolproof plan, really! However, there are some home upgrades that will increase the property value more than others, so how can someone effectively increase their property value without losing their return on investment? Here are three simple, affordable ways to increase your property value, so that you can be rewarded by your hard-earned investment.
Don’t Spend More Than Market Value Suggests
When planning to renovate a home, it’s important to figure out a budget for the renovation. For a worthwhile investment, the cost of the house, plus the upgrades, should not exceed what the new market value of the house will be. For example, if a house was purchased for $475,000, but the top of the housing market in your area is $500,000, then it would not be financially beneficial to put more than $25,000 of upgrades into the house. “Pay attention to what homes top out for in your neighborhood,” advises Leneiva Head, real estate broker and founder of Welcome Home Realty in Tennessee. Doing the research and figuring out a good financial plan for the renovations will give someone the most bang for their buck!
Kitchen Upgrade
Having an updated kitchen will give you the best return on your investment. In today’s society, most people value the quality of their kitchen than any other room of the house. Indiana mortgage banker Corey Vandenberg, says that appraisers tend to look for updates in the kitchen and bathrooms first, due to the appeal for potential buyers. So, in what ways can a kitchen be updated? Stainless steel appliances, gourmet-cabinets versus stock cabinets, and quartz or granite countertops are all effective ways to upgrade a kitchen. Replacing old flooring with a new tile or vinyl flooring, or even adding a simple backsplash behind the countertops will also improve the look and value of a kitchen.
Curb Appeal
When buying a house, first impressions can be the most important! The outside appearance of a house can often set the buyers’ opinion and mood for the rest of the house. Appealing landscaping, appropriate plants, and small details to the house can greatly affect its curb appeal. Along with being one of the easiest renovations to a home, it’s usually the most affordable.
“Landscaping is probably the best and easiest, most affordable way to increase your home value in the first year,” says Des Moines-based realtor Sara Hopkins. A neutral-colored exterior paint, shutters, and flower boxes are simple ways to “wow” potential home-buyers with a home’s simple-yet-stunning upgrades.
These are the quickest, most effective, and most affordable ways to increase the property value of your home. While there are an endless number of upgrades that can be done within a house, these suggestions can be put at the top of a to-do list when someone is overwhelmed or not quite sure where to start.