The value of your home can increase or decrease due to any number of factors. Some variables are out of your control—like how hot your local housing market is or isn’t. But others may be—namely, strategic upgrades to the premises.
Many home improvements can add a significant amount to the value of your home, enhancing your equity stake. While they won’t all recoup their full cost, they definitely will make the home more marketable—and of course, improve your quality of life while you still occupy it.
5 Ways to Increase the Value of Your Home
There are a variety of ways to add value to your home. Some are simple and fast DIY jobs. Others require an upfront investment and the use of professionals.
1. Clean and Declutter
To increase the value of your home, begin by decreasing the amount of stuff that’s inside it. Cleaning and decluttering are relatively inexpensive tasks, even in bigger homes. Professionally cleaning a four-bedroom home averages between $200 and $225, according to HomeAdvisor, but of course it varies greatly by metro.
Of course, you could save money by doing the work yourself. Start by going through cabinets and closets and making donation piles. Then clean out drawers and other storage areas, making sure you’re not keeping anything you don’t need or want.
2. Add Usable Square Footage
Homes are valued and priced by the livable square feet they contain, and the more livable square feet, the better, says Benjamin Ross, a Realtor and real estate investor based in Corpus Christi, Texas.
Adding a bathroom, a great room, or another needed space to a home can increase function and add value. A separate in-law suite can also be a smart idea. “Most homes do not have this feature,” says Ross, “so adding one sets you apart from the competition when it is time to sell.”
3. Make Your Home More Energy-Efficient
Projects that lower utility bills can increase the value of your home. And they don’t have to be complicated.
Improve your home’s efficiency and value by replacing old, leaky windows, installing energy-efficient home appliances, and insulating walls. Swap out old incandescent bulbs for energy-efficient LED’s, which last longer and use less electricity.
If you have some extra cash, you can invest in solar panels. While there might be high upfront costs, they can reduce your electricity bill and reliance on the grid by providing free energy from the sun. Solar panels can also increase the value of your home in areas where energy costs are elevated and sell faster than those without the upgrades.
4. Spruce it Up With Fresh Paint
A fresh coat of paint can make even dated exteriors and interiors look fresh and new.
Your painting budget will depend on a number of factors, including the materials, labor fees, room type, and room size. HomeAdvisor pegs painting a bathroom—usually the smallest room in the house—somewhere between $140 and $420, while a 330-square-foot living room might cost as much as $2,000. An exterior paint job, on the other hand, will cost much more, with prices ranging from $1,000 to $6,000.
If you just want to repaint a door or a single room, doing it yourself could cost you between $200 and $300. For bigger jobs, though—especially exterior ones—hiring a painter might be worth it, given that professionals can buy paint at wholesale prices, know what sort of finishes to use, and are more adept at scaling ladders.
5. Work on Your Curb Appeal
From power washing your driveway to mowing the lawn, improving curb appeal can make a big difference in your home’s value.
Upgrading your landscape can go an especially long way, says Joe Raboine, vice president of Design at Oldcastle APG, a manufacturer of exterior building products. Some ideas: a fresh walkway, shrubs, planters, mulching, or even a new patio or outdoor kitchen. Small details like a new mailbox, light fixtures, solar-powered path lights or a new house number sign can also make a world of difference.
Reasons to Increase Your Home Value
Your home is likely one of your largest assets, so increasing its value contributes to your overall net worth. Raising your home’s value has other benefits, as well, such as:
- More profit when you sell: A higher home value translates to higher asking price when you put the place on the market.
- More tappable home equity: If you need cash, you can borrow against your home’s equity—more so the more your home is worth.
- Some protection from market swings: If your home has a higher value, you might be able to guard against major dips in the housing market.
- No more mortgage insurance: If your home appraises for a higher value, it increases your equity stake—to a level that leads to the elimination of private mortgage insurance premiums.
- Aesthetics and function: Upgrades increase your enjoyment and use of your home.