How to Increase Your Home’s Value
Before beginning any home improvement project, it’s important to consider the value of other properties in your neighborhood. You generally don’t want to raise your home’s value too far above the surrounding homes, because buyers looking for higher-priced properties tend to shop in more expensive neighborhoods. A good rule of thumb is to keep your home’s value within 15 to 20 percent of the value of your neighbors’ homes.
As a Realtor and longtime home flipper, I’ve seen firsthand how much the right improvements can affect a home’s appeal and resale value. After years of buying, remodeling, and selling properties, I’ve learned that the best projects aren’t necessarily the most expensive ones—they’re the ones that make sense for the home, the neighborhood, and the buyers who are most likely to purchase it.
Remodeling Projects with the Best Return
According to Realtor Magazine, the following projects have these average national cost-recovery rates:
Project - Average Cost Recouped
- Minor kitchen remodel (88%)
- Bathroom remodel (85%)
- Major kitchen remodel (81%)
- Family room addition (80%)
- Deck addition (77%)
- Master suite (75%)
- Attic bedroom (74%)
- Siding replacement (73%)
- Window replacement (69%)
- Home office (55%)
Improvements That May Increase Value
Certain features may add to a home’s appeal and value, including:
Permanent hot tub, In-ground pool with a nice deck area, Security system, Sprinkler system, Substantial outbuildings, such as a two-car garage or finished workshop, Vaulted or tray ceilings.
However, think twice before investing in features that may not provide much return. These can include above-ground pools and garden ponds.
Tips for Value-Increasing Remodeling
Remodel with mass appeal in mind. Potential buyers are generally more attracted to neutral, mainstream designs. While you may love a highly personalized style, it could limit the number of buyers interested in your home.
Don’t go cheap on construction. Use durable, quality materials, and if you’re a do-it-yourselfer, honestly evaluate your ability to complete the project correctly. Poor workmanship can hurt a home’s value rather than increase it.
Keep the style consistent. Avoid remodeling in a style that is completely different from the rest of the house. Additions and improvements that look “tacked on” can detract from a home’s overall appeal.
Protect your bedroom count. Turning a bedroom into a bathroom can be a mistake because it reduces the number of bedrooms, which is a major selling point for many buyers.
Keep the project proportional to the home. Don’t spend $30,000 on a kitchen remodel in a $100,000 house unless you plan to continue living there. In most cases, that level of investment simply won’t provide a reasonable return.
Don’t Forget the Outside
Before tackling major projects, make sure the exterior of your home is spic-and-span. Clean out the gutters, wash the windows, and remove cobwebs and bugs. Trim the hedges, cut and edge the lawn, and sweep the sidewalks and driveway. Adding some colorful flowers out front can also make a big difference in first impressions.
You may also want to improve your landscaping while you’re at it. According to a study conducted by Money Magazine, landscaping may be one of the best investments for improving a home’s value. The study found that well-planned, attractive landscaping was estimated to have an actual recovery rate 100 to 200 percent higher than a kitchen or bathroom renovation.
After a decade of flipping homes, I’ve found that the most successful improvements are those that combine function, quality, and broad buyer appeal. You don’t always need to spend a fortune to make your home more valuable—sometimes the smartest investment is simply making the home look clean, well-maintained, updated, and inviting.
Before investing in a major renovation, it’s always a good idea to consider comparable homes in your neighborhood and what buyers are actually looking for. A project that makes sense for one property may not make sense for another.
Questions about a home remodel? Give me a call! 520-403-2561
DeeDee Cherubini