Your home is not just a place to live but is also a way for your to build wealth through equity. Even in the middle of a pandemic, more families are looking into settling into bigger homes. People are looking for homes that have ample space and entertainment options, should lockdowns become a norm.
You may be thinking about selling your home eventually. As your property value increases, you can sell it for a higher rate than when you first bought your property. Yet, it can be hard to predict the rate of appreciation for homes since factors like inflation and overall economic health depend on one’s ability to buy a home.
While most people think they will be staying in their homes for about 15 to 20 years, most home sellers have only lived in their homes for an average of nine years. This leads homeowners (and possible sellers) to ask how home value can increase equity appreciation. If you think your home can be a good deal someday, here are features you can add to increase your home’s value.
1. Add more style to your home.
First impressions last, especially when it comes to your home’s facade. No one wants to buy an old, dirty house. A good way to increase your home’s value is to make it more attractive. In simpler terms, pursue home staging. As a beautiful home can be a great selling point for buyers, you can also feel better by living in a prettier home.
Home staging does increase a house’s selling value. Yet, you do not have to go all out to make it prettier. You can enjoy small changes even on a budget. And even if you choose to make an upgrade, stage common rooms like your living room, kitchen, or dining room.
However, make sure that you are committed when you make these room upgrades. A minor kitchen remodel can cost thousands of dollars, including appliance upgrades. While you can enjoy its immediate benefits, make sure to pursue projects within your means. If in doubt, ask your real estate agent for advice.
2. Add areas for leisure and entertainment.
Adding areas for leisure and entertainment can bring more value to your home. Having an area for a home theater, an indoor range, or even a swimming pool can be a great venue to receive guests. During the pandemic, these areas can be great for passing the time and boredom.
While adding these areas for leisure can be pricey, your potential buyers will be impressed with these additional features in your home. If your entertainment den is a part of a basement, the appraiser can value the theater as a finished below-grade area. While the market does not pay the same amount for a finished basement area, there are times when these can be valued similarly to above-grade gross living areas.
3. Invest in energy efficiency.
Energy efficiency can increase your home value while you save on utility bills. Promoting energy efficiency in listings is valuable and can link you to a buyer faster. Aside from changing your lights to LED, there are other ways to make your home energy efficient.
You can install more windows and doors to let the light in. There are also landscaping techniques to help energy consumption. Others invest in solar panels, which can even help when unwanted blackouts happen.
An energy-efficient upgrade could be costly, especially if you are also looking into installing new appliances. However, these upgrades, especially with new windows and doors, can give you better ROI as your home value can increase with these additions.
4. Check out new technologies.
More American homebuyers are looking into buying homes that have the latest technologies. As more millennials are buying homes, they are more likely to settle for houses with preinstalled smart technologies. Invest in smart technologies like smart lighting, security, and air quality monitors, among others.
Your home is your greatest investment. It is a place where you and your family gather and make fun memories. While most people live longer in their homes, you may have other plans.
These upgrades will surely increase the value of your home, should you decide to sell it eventually. Of course, these projects cost a lot of money. For your home to have higher value, you need to shell out money to pursue these projects. If you have the budget for these upgrades, go for it. They work as great investments. But if you do not have the means yet, assess your finances first. Or you can ask for help through bank financing options.