Special to the Financial Independence Hub
While your house is your home, it is also a substantial investment that can increase tremendously in value over the years. Property value may increase through changes in market conditions in your hometown; it can also increase when you make strategic upgrades and improvements to the property and even through proper home maintenance steps over the years. Some improvement projects can pay off substantially, and these are the areas you may want to focus on initially for the best results.
Focus on Curb Appeal
If your goal of increasing property value is based on a desire to sell the property soon, curb appeal is a prime area on which to focus. Curb appeal is immediately visible to buyers who are browsing through online listings, and great curb appeal can entice them to continue to flip through your property’s online photos and request a tour. Curb appeal may be improved by fertilizing the lawn, mulching the flower beds, trimming the trees, adding new flowers to your space and more. If you have extra time and money, repainting or replacing your front door and decorating the patio are wonderful ideas to consider as well.
Upgrade the Kitchen
When a kitchen renovation project improves the style and function of the space, it can result in a considerable increase in property value. In fact, you may be able to recoup as much as 80 per cent or more of your costs to upgrade the kitchen through an increase in property value. Choose upgrades and a design that appeal to the masses for the best results, such as a neutral hue for counter tops rather than a bold colour. In addition, only make upgrades that are in line with your market. For example, avoid investing in high-end luxury appliances for a kitchen in a starter home.
Renovate the Bathroom
Bathrooms are also a great place on which to focus your attention when you want to improve your property’s value. Bathrooms in starter homes may lack style and personality, and usually have cheaper or entry-level finishes. In older homes, these spaces can look outdated and unattractive. Making upgrades and improvements in your bathrooms, such as replacing the counters and re-tiling the shower, can add tremendous value and appeal to the home. As with the kitchen, choose a design and finishes that appeal to many people and that are suitable for the market where the home is located if you want to recoup the most value from the investment
Review the Property Inspection Report
Cosmetic improvements to the home, such as through interior renovations and exterior landscaping upgrades, can pay off when you sell your home in the future. However, you also need to think about the property’s condition. When you purchased your property, you may have ordered a property inspection. If it has been several years since you last ordered a property inspection, you can order a new one from a property inspector. These are items for which a seller will likely negotiate a repair allowance or ask you to fix before closing. Because of this, they can detract from your bottom line when you sell the house. To make your repairs in the most cost-effective way, consider using your home warranty coverage to pay for as many of these items as possible.
Updating your home in different ways could result in a substantial increase to its value, but you also need to focus on the overall condition of the property. A seller will find less value in a home that is not properly maintained. Before you spend thousands of dollars on renovations, consider tackling the repair items that you are aware of and replacing outdated systems, such as the HVAC system or the hot water heater. These are all upgrades that can add tremendous value to your home and that can help you to sell the home more quickly when you decide to list it for sale.
Sia Hasan is a tech entrepreneur by day, and a freelance writer by night. Her passion lies in business technology, efficient and sleek programming, and customer relationship management. When she doesn’t have her nose pressed against her computer screen, you can find her spending time with the loves of her life, her two dogs, Pixel and Vector.