Home equity is one of the most significant wealth generators for families today. By increasing the value of your property, you can produce substantial capital gains when it is time to sell.
The real estate market from 2020 to 2021 saw one of the most extensive periods of growth in American history. Many homeowners saw their property values rise by 18% or more, with some communities exceeding 30% in a single year.
With that much equity in a property, you can take control of your future financial situation. If you want to increase the value of your home even more, these upgrades are worth considering.
What Are the Best Ways to Add Value to a Home?
1. Give your home a fresh coat of paint.
A fresh coat of paint can make your exterior look new and improve the comfort and convenience of each room. Although you can select whatever color you want, neutral tones tend to add the most value. Try to avoid colors like terracotta or dark brown. You can expect to get the cost of this improvement back in equity, so spending $2,000 on new paint would add that amount to your eventual sales price.
2. Upgrade your appliances.
The kitchen is your moneymaker. When it is clean, modern, and equipped with upgraded appliances, you’ll generate a lot of attention for your property. If a full remodel isn’t in your budget, try to upgrade the tools that people use each day. You could update the mismatched products, modernize the refrigerator, or even add a dishwasher or a microwave into the setup.
It only takes one small change to make a big difference with your home value. You’ll receive about 75% of your kitchen investments back as home equity.
3. Change the hardware in your kitchen and bathroom.
When you want to maximize the value of your home, you’ll find that the small details matter. Your door handles, knobs, and hardware throughout the kitchen and bathroom add flair that buyers love. It only takes a few hundred dollars to maximize your investment in this area, and you can enhance the overall style and feel of the house for others.
4. Replace the light fixtures.
Another inexpensive way to add more value to your home is to update the lighting in each room. Most houses today use simple electrical fixtures that have a glass or acrylic bowl over them. If you change the setup, you could add more light to a room, modernize its look, and improve the space’s functionality.
You can also consider replacing your outlet switch plate as part of this update. If you haven’t upgraded your receptacles or they’re worn out from use, adding these extra elements won’t cost much. In return, the home’s functionality will increase significantly.
5. Update or upgrade the landscaping.
Curb appeal is a significant factor to consider when maximizing your home value. You can increase your equity by 10% of its current expected sales price by investing in this area.
The goal should be to spend about 10% to 20% of what you paid for the property on your landscaping. That means a $200,000 home would want to invest at least $20,000 in this asset.
When upgrading your landscaping, it’s important to focus on native plants and those that can handle some drought. They’ll require less maintenance, which means your utility bills will end up being a bit cheaper.
If you don’t need to update your landscaping, consider putting some money toward lawn maintenance. It only costs about $300 to maintain it throughout the year, and in return, you’ll recover a value of more than $1,000.
6. Upgrade your front door.
A fast change to your front door can switch up the curb appeal of your property dramatically. The cheapest way to update your look here is to give it a fresh coat of paint. If you have some money in your budget, you can grab a brand-new steel door for under $3,000 in most markets. When it comes time to sell, you’ll recover about 75% of your investment from this update.
7. Install new bathroom fixtures.
Outside of the kitchen, the bathroom is the place where most buyers want to see valuable installations. Even a small makeover can generate a significant return. You might consider adding a new vanity, installing a second sink, or upgrading the toilet. If you have carpet in there, tear it out and look for mold or mildew before installing new flooring.
Simple upgrades offer a meaningful way to add equity to your property. Our team can help you with these steps to ensure the results achieve your goals! Let’s talk about your project today so that your home can be ready to show off its new look.