There are a lot of things that we think will increase home value, but what actually does? Statistically speaking, the following changes are most likely to improve the value of your home substantially. The amount varies by where you live and the condition of the rest of your home, but consider these things first, before you start pouring money into renovations that may not be offset by the increase in value.
- Kitchen - An updated kitchen is a huge boost in home value. From high efficiency appliances to clean, new tiles and sleek countertops - this can have a huge impact.
- Bathroom - Bathrooms are a close second to the kitchen. You don’t need a new whirlpool, but new tile in the bath, new fixtures and low flow shower heads and toilets are all good upgrades. Pipe upgrades are essential too - infrastructure is the first thing you should work on when renovating.
- Go Green - Green upgrades to building materials, fixtures and appliances will have a positive impact on your home’s value across the board.
- Windows - Windows are not just an aesthetic upgrade; they affect the efficiency of your home’s heating and cooling systems and therefore a direct return on investment.
- Trees and Landscaping - If you have mature trees in your hard, you instantly grow the value of your home. Add a tree if you plan on living there for a while.
- Usable Basement - Basements that leak are not only almost useless for storage or extra space - they are a health hazard. Dry, usable basement space is highly valuable.
- Reduced Energy Consumption - If you are going to live in your home for a few more years, consider an upgrade to your HVAC system to reduce energy costs. Even smaller upgrades such as new water heating and fixtures can go a long way.
Of course, you should always talk to a real estate agent before you commit to any changes. Based on where you live and current market conditions, the value of your home could be capped at a certain point. If you plan on selling soon, you want to limit the changes you make to ones that will directly increase or maintain the value of the space, without costing you a fortune.