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Most homeowners will invest in upgrades and repairs at some point, but determining which home improvements to make can be tricky. It’s easy to spend a lot of money on upgrades that don’t add value to your home. You can invest tens of thousands into home improvements and see little pay off when you sell. Before you invest in any significant changes to your home, you should know what your home is worth now by using an online tool to get an estimate.
If you plan to live in your home for the long haul, upgrades that improve the aesthetics or functionality of your home might be worth it even if they don't add value. But if your goal is to build wealth through home equity, you will have to put a little more thought into your improvement projects. Here are some key areas to focus your improvements on to add value to your home.
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Today, energy-efficient homes are in high demand. Buyers want homes that are eco-friendly and easy on the wallet, which is why energy-efficient upgrades will offer a great return on your investment. These upgrades might just pay for themselves before you even sell your home!
Think of new appliances, proper insulation, LED lighting, and modern windows and doors. Old windows make it hard to keep your home warm in the winter and cool in the summer, so it’s well worth it to replace them with insulated glass.
Even if your home is on the older side, future buyers will expect to see modern systems throughout the building. The cost of constantly maintaining and repairing an outdated HVAC system, water heater, roof, or plumbing system can really add up. Once these systems reach their expected lifespan, it’s time to invest in replacements. Most air-conditioning systems need to be replaced every 15 years.
Replacing your roof is another major expense that will pay off when you sell. Roofing problems can make it near-impossible to find a buyer for your home, and when you do, they may request a closing credit to cover the costs of roof repair. Replacing your roof now will help you avoid these issues when it comes time to sell. Plus, a new roof will also boost your curb appeal.
Smart Home Technology
Homebuyers are drawn to the increased security, convenience, and cost-savings that come with smart homes. According to DIY Smart Home Solutions, investing in home automation technology can increase your home value by 5 percent (or as much as 35 percent if you’re lucky). Homebuyers want to see smart and automated thermostats, fire detectors, carbon monoxide alarms, video doorbell systems, locks, and lighting systems.
Minor Kitchen and Bathroom Upgrades
If your kitchen and bathroom are a little outdated, it might pay to make a few upgrades. Just don’t go overboard. Smaller upgrades will give you the most return on equity. Paint the cabinets, add a backsplash, replace the flooring, or splurge on a new countertop. Quartz countertops offer a high-end look without the price tag of marble or granite. The Spruce ranks quartz as the number one countertop material based on appearance, value, stain resistance, heat resistance, and resale value.
Improving your home’s exterior and landscaping can also do a lot to boost your home value. Focus on low-maintenance landscaping with native plants that can survive in your climate without a lot of water. You can also plant trees and shrubs strategically around your property to keep your home cooler in the summer, reducing energy costs for you and your future homebuyer. The key is to create landscaping that looks planned and cohesive. If you’re not sure where to start, it’s worthwhile to hire a landscape designer to draw up a master plan for you to follow.
You don’t have to spend a lot of money or time to improve the value of your home. Start small and focus on the most cost-effective upgrades, whether this means painting the kitchen cabinets or doing some light landscaping in the front yard. Prioritize the simplest home improvements that will have the biggest impact on your home value.