Six Tips for Increasing Your Homes Resale Value
Certain home improvements can dramatically increase the resale value of your home. The question is which ones bring you the most value and which ones are not worth the time or money. Whether selling your home now or down the road, these six strategies will boost the value of your home. (Disclaimer: You may not want to sell your home after you see the difference these improvements make!)
1. Seek advice from pros. Schedule time for a realtor to check out your home and give you tips on making it more marketable. Another professional you’ll want to consult is a home inspector. They’re able to find hidden problems that can greatly impact the value of your home. From hail damage on your roof to plumbing problems, you’ve got to take care of any repairs before you even think of remodeling.
2. Clear out your clutter and clean! According to Consumer Reports, cleaning can deliver a 3% to 5% return on investment, and this is something you can do yourself.
3. Curb appeal is huge. This is where first impressions are made. Trim your lawn, shape your hedges, and hire a good landscaper if necessary. Enhance your porch or entryway with potted plants and a freshly painted front door. Replace outdated outdoor lighting fixtures and buy new house numbers and welcome mat. Splurge on siding if necessary because siding has been shown to have an 89% return on investment.
4. Focus on your kitchen and bathrooms. Even small investments can have a serious impact. For kitchens, consider updating appliances. Simply updating the hardware on your cabinets makes a positive difference. If bathroom tubs and showers are looking dingy, consider re-grouting the tile and replacing any chipped tiles. Replace any dated wallpaper with a textured finish and replace old lighting.
5. Nothing updates rooms and makes them look crisp and clean faster (and cheaper!) than a coat of fresh paint. When selecting colors, choose neutrals that will appeal to as many tastes as possible The priorities are painting your kitchen and bathrooms, but you’ll want to touch up any areas with visible wear as well.
6. Increase your home’s square footage if possible. The size of your home dramatically affects its value. Every 1,000 square feet added to a home boosts the sale price by more than 30%, according to the 2005 study for the National Association of Realtors. Finishing a basement is the most common way to add square footage, but bathroom additions return the most value (86.4%), according to Remodeling magazine’s report.
Visual space counts too; the goal is to make the rooms in your house feel larger. You can visually double the space of a room just by removing excess furniture and clutter and by adding a single large mirror.
Bonus Tip: Nothing can make or break your budget quicker than the quality of your contractors. Hire the wrong ones, and you can be out thousands of dollars, with even more expensive problems to correct. Protect yourself from scams and shoddy work. Angie’s List has a list of the most common roofing scams. Get referrals from professionals and friends, investigate the company, check references, and get multiple estimates.
Roofing in particular is prone to scams. If replacing your roof, call your insurance adjuster for an inspection first. It is their responsibility to pay for any damage caused by storms. Reputable roofing companies will not ask for any money down and will work with your adjuster. Ask to see their proof of insurance and look for red flags such as only having a post office box. Also, most legitimate roofing companies will include a section in their contract that explains how damage to a roof’s decking will be addressed and how much it will cost to replace per square foot.
According to Hanley Wood’s Housing Continuum Study conducted in 2002, more than 70% of home buyers purchase a home knowing they will be remodeling it. With this in mind, it’s better to invest in any necessary home repairs versus updating it with the latest marble counter tops and steam showers. With attention given to this and the smart strategies above, you will not only increase your home’s value, but you’ll increase your enjoyment in the home until ready to sell.