Your home is one of the biggest investments you make in life.
Although you may not be thinking of selling it right now, you may want to later. Home improvements often add value, but it’s a good idea to know what kind of home improvements can yield a greater return on your investment. Explore 10 common home improvements you can make to help increase the value of your home.
- Hire a Home Inspector: What you don’t know can hurt your home’s value. That’s why it’s a good idea to hire an experienced inspector to find out what needs to be repaired. An inspector can catch a small problem before it turns into a big expense. Find the cost of a home inspection on this site. Don’t overlook the importance of this modest investment.
- Add Insulation: Not a glamorous update, but the 2016 remodeling report shows that adding fiberglass insulation in your attic has the highest return. This project has been taken off the 2020 report, but it is still a value-added proposition no matter what year you sell. Mostly because you will have peace of mind knowing that the heat and air conditioning stay inside where they belong.
- Replace Your Garage Door: Replacing your garage door will yield the second-highest return on your home’s investment. Homeowners can expect more than a 90% return on investment, on average. Garage doors are more exciting than they used to be, so you might be surprised at the choices of materials, colors and decorative hardware.
- Replace Your Front Door: Your front door is a first impression for visitors, so it’s important to set the tone for the whole home. The practice of feng shui says that a good front door opening into a wide space can help invite wealth into your home. Remodeling Magazine’s 2020 Cost vs Value report agrees: You can expect a 70% return, on average, for installing an upgraded door on an upscale home.
- Give Your Kitchen Cabinets a Facelift: There are several things you can do to improve the look of your cabinets, from buying new handles to painting them to hiring a company to refinish them. If you can afford it, replacing your cabinets is a wise investment. Homebuyers look first at kitchens and baths, so it’s important that yours make a great impression.
- Update Your Bathroom: Like your kitchen, the visual appeal of your bathrooms is key. A bathroom renovation can pay for itself, according to HGTV. Experts suggest not spending a fortune updating a one-bath home, but instead adding a second bathroom to increase a home’s value. According to Remodeling Magazine’s report, bathroom additions and remodels return the most.
- Freshen Up Your Paint: Fresh paint in modern colors can add a nice touch to your home without breaking the bank. Remember to keep colors neutral so you appeal to as many people as possible.
- Go Green: Update your lightbulbs, appliances and windows to more energy-efficient models to save yourself some electricity costs while saving the planet. Win-win! Check Energy Star’s rebate finder to find product rebates or special offers. Also, buy appliances toward the end of the month or during a weekday or holiday sales to save even more.
- Update or Add a Deck or Patio: If you have an older deck, try updating it by using a special paint that fills in cracks and gives it a nice finish. Or if you don’t have a patio or deck, add one to increase your home’s value. Today’s homebuyers appreciate outdoor living space just as much as indoor space.
- Add Curb Appeal - Within Reason: Realtors tend to agree that upgrading the look of your front yard can help increase your chances of showing your home to prospective buyers. However, you don’t want to spend too much money on the perfect landscape because that money may not get recouped. Additionally, if your siding has seen better days, it’s important to consider replacement. Realtor.com advises that siding replacement yields an average of 75% return on investment for homeowners.
While planning your home improvement projects, consider the long-term value each might deliver, the neighborhood you live in, and avoid upgrading so much that your house becomes unaffordable for your location. Our Homebuying Checklist is another good resource for learning more, and please feel free to contact us at First American Bank with any financing questions.