Everyone knows that home improvements – in general – can help boost a home’s resale value. But don’t kid yourself into thinking that all home improvements will deliver on their dollar. You must think strategically if you want to increase the resale value of your home. Before busting out the sledgehammer, take a look at the following tips:
Pay attention to curb appeal.
First impressions can make or break a sale when your home is on the market, so improving your home’s exterior is usually a smart move. Landscaping the front lawn, planting some shrubs and fixing up your home’s façade are good places to start. Want to install a pool in the backyard? Resist the temptation, as you likely won’t recoup your costs on this particular improvement.
Focus on function.
Many people focus on aesthetics when it comes to improving or updating their home. But practical upgrades are especially effective when it comes to increasing a home’s resale value. Consider adding a garage and installing a fireplace if you don’t already have one. Have an older home with laundry facilities in the basement? Move the laundry room to the main floor for another value-added improvement.
Update kitchens and bathrooms.
Research shows that kitchen and bathroom renovations consistently bring in a higher return on investment than other room renovations, so focus on these areas first if you only have the funds to fix up a few rooms in your home. Even small changes like new appliances or countertops can help boost your home’s resale value – without busting your budget along the way.
Keep it neutral.
If you’re planning to stay in your home forever, feel free to make it as taste-specific as you like. But if you’re planning to sell your home in the near future and are concerned about resale value, keep your home’s décor neutral. Opt for tan, beige or gray paint colors and stick to basic styles instead of committing to love-it-or-hate-it design themes such as ultra-modern or French country.
Don’t go overboard.
No matter how many improvements you make to your home, its ultimate resale value will largely be determined by the value of other homes in your neighborhood. Realtors discourage improving your home beyond a value that’s 15-20% higher than the prices of other homes in your area, as you likely won’t recoup costs above this level.