This Is the One ‘Surefire Way' To Increase Your Home’s Value by at Least $50,000, According to Experts
Selling a home used to be as simple as hiring a realtor and plunking a “For Sale” sign down on your front lawn as you await interested buyers to come in droves. Nowadays, buyers are a bit pickier and want modern features and aesthetics that fit their lifestyles. That means that a home that’s stuck in the 1980s, and hasn’t been changed since then, might have a little more trouble selling than current-looking, remodeled homes that are on the market.
If you know that you’re going to be selling your home within the next year or two, now is the time to start thinking about upgrades to make it more attractive to buyers and figure out how to increase your home's value. While those upgrades are undoubtedly an investment, the rate on investment might be substantial, and you could make a sizeable profit.
“A home is an investment, and in most cases, the biggest investment people make in their lifetime,” says Maureen McDermiut, realtor at Sotheby's International Realty in Montecito, California. “That being said, increasing the value of your home will increase the price you can sell it for, and thus, your ROI.”
When viewing your home as an investment, you should remember that like any investment, you’ll want to see a positive return, Kristina Morales, Chief Finance Contributor at Loanfully, says. And while this is true, you know your budget best, so aim to stick to upgrades that fit what you can currently afford.
Wear and tear is something that happens to all homes, but it should be addressed before putting it on the market. As Martha Gaffney, Strategic Real Estate Advisor at Real Estate Bees, says, homes need constant maintenance.
“If you don't maintain the home, it will deteriorate over time and lose value,” she explains. “Even if the neighborhood is gaining value, the home will lose it, and over time, only become valuable for its land.”
Morales has these wise words to keep in mind as you start to ponder home upgrades: “It’s important to hire professionals to do the work. DIY improvements, while more cost-effective, can negatively impact value. If the work is done poorly, a future buyer will view it as more work and discount the value.”
In other words? Hire the pros and consider these improvements to make your home more sellable.
How To Increase Home Value by $50-100k
Finished Basements
McDermiut strongly recommends finishing the basement if you can.
“If your home has a basement, finish it,” she says. “This is a surefire way to increase the value by at least $50,000.”
But that's not all—here are 10 additional ways for sellers to increase their home values.
Renovated Kitchens
Kitchens are big these days. As Gaffney says, a kitchen is typically the first thing that pops up in pictures or when walking into a home. While kitchen upgrades can be costly, it’s important to renovate to meet the things that home buyers are looking for in current-day kitchens. Think: sinks, stone countertops, and refurbished or repainted cabinets, Gaffney lists.
“Upgraded kitchens are one feature almost every home buyer is looking for, and updating the kitchen can easily help you increase the value of your home by $50 to $100,000,” McDermiut says.
Fresh Paint
“Fresh paint on the interior and exterior will also help you net more from the sale of your home,” McDermiut advises. “Be sure to choose the most popular colors that look appealing, given the style of your home. Paint color on the exterior can help attract buyers by improving the digital curb appeal of your home in photos.”
Gaffney says that comparatively, paint can be rather inexpensive. “Paint is one of the simplest ways to maintain and give your home a fresh look,” she says.
Additional Living Space
McDermiut explains that adding “more usable living space” will also increase your home’s value.
“This could be adding a bedroom or even turning a ranch into a two-story home, or adding a mother-in-law suite,” she says.
More Bathrooms
Simply put, Morales says that just like kitchens, bathrooms sell.
“In addition to investing in cosmetic updates, making sure there are enough bathrooms is also important,” she says. “In older homes where one bathroom was sufficient for a whole family decades ago is no longer relevant in today’s market. Therefore, adding another bathroom is another one to add value.”
New Flooring
Since flooring is one of the quickest things to wear and tear in a home, Gaffney recommends replacing it to improve resale value. If you already have wood floors, to save money, you could give them a polish. And if you have carpeting, Gaffney actually suggests removing it altogether.
“I would personally get rid of [carpeting] unless it’s in the bedrooms, and even there, I would keep it to a minimum,” she says. This lines up with home buyers’ current desire for less carpeting and more laminate or hardwood flooring throughout, which also tends to stay cleaner and look less worn than carpeting.
Upgraded Appliances
Gaffney says that although it’s recommended to replace your appliances before selling, the prices of fancy ovens and stoves can add up quickly. She suggests not “overspending on gadgets that frankly, not even a top cook uses.”
She goes on to say, “Sub-Zero appliances are always something people love and admire in a home. If you are a wine lover, maybe a wine cooler. Also, double convection ovens are lovely when cooking large dinners.”
Related: When Is the Best Time To Buy Appliances? Mark Your Calendars and Plan Ahead With These Shopping Tips
Increased Energy Efficacy
Everyone is thinking “green” these days, and homes are no exception. Since it’s top of mind for so many people, think of ways that you can increase energy efficiency in your home.
“By using solar panels, many sellers will help their buyers think of all the money they can save,” McDermiut says. “A less expensive route to take would be to ensure that the insulation in the attic is at least R-49 [which will keep heat better in the home]. This will decrease the cost of heating and cooling in the home, and can be a good selling point to potential buyers.”
Replaced Roof
“If the roof on the property is old, replace the roof,” Morales says. “If it needs to be replaced, a potential buyer will discount their offer price to accommodate this need to invest in a new roof.”
Added Garage Storage
Although the garage may not come to mind as you consider areas to make over in your home, it’s actually a key space for buyers.
Calling it “a place that you usually have low expectations for,” Gaffney says that a person really can love a garage, especially when it’s equipped with cabinets to store tools, spots to hang tools and has a good amount of light.
“Some even add a freezer to store extra food,” she says.
Related: What Are Annual Plants? Plus, Gorgeous Annual Varieties That Make for a Stunning Garden
Refreshed Landscaping
Curb appeal matters, as Morales says, and that comes down to your landscaping.
“When thinking of your home, think of the entire property,” McDermiut says. “A well-manicured lawn and some attractive landscaping can catch the eye of a potential buyer and bring them in to see the rest of the house.”
Next up, discover which house colors sell the best, according to real estate experts.
Sources
Maureen McDermiut, realtor at Sotheby's International Realty in Montecito, California
Kristina Morales, Chief Finance Contributor at Loanfully
Martha Gaffney, Strategic Real Estate Advisor at Real Estate Bees
