Cost-Effective Ways To Increase Your Home’s Value

Owning a home is one of the best investments you’ll ever make. It offers a path to generational wealth and financial stability. Nationally, homeowners who bought their homes a decade ago have gained $225,000 in equity on average, according to the National Association of Realtors.

If you’re among the 64% of Americans who own a home, you may be looking for ways to get the most out of your investment. In honor of National Homeownership Month in June, we’re celebrating homeownership and highlighting cost-effective ways to increase your home’s value.

Cost-effective home upgrades

According to the real estate app Zillow and the real estate network HGTV, the following home improvements generally yield the greatest return on investment:

Kitchen and bathroom updates

HGTV notes that kitchen and bathroom remodels can return over 100% of the cost of the project. But if you don’t have the cash for a full remodel, you can get a lot out of some simple and less time-consuming upgrades:

Kitchen

• Replace old lighting.

• Match your appliances (all stainless steel, all black, etc.).

• Paint or refinish your cabinets.

• Replace knobs and drawer pulls.

• Install modern lights.

• Add new countertops and a backsplash.

• Replace the faucet.

Bathrooms

• Match your hardware (all black, all gold, etc.).

• Paint or refinish your cabinets.

• Install a new toilet.

• Install modern lights.

• Replace old mirrors.

• Recaulk or reglaze your tub.

• Fix or replace damaged countertops.

• Deep clean to remove stains and rust.

Fresh interior paint

A fresh coat of paint can help conceal imperfections, like dents and holes. It also gives the home an updated look for a minimal cost. Zillow notes that about one-third of sellers repaint their interiors before selling. Depending on the size of your home, interior paint can cost as little as $2,000, according to the personal finance site NerdWallet.

Flooring

If new hardwood floors aren’t in your budget, you may be able to get away with deep cleaning or refinishing your existing flooring. If there’s any damage, like scratches or stains, see if a professional can repair them.

Curb appeal

Zillow also notes that about a quarter of sellers also upgrade their landscaping before selling. But landscaping isn’t the only way to increase your home’s curb appeal. You can also:

• Replace old siding.

• Repaint your front door.

• Repaint or power wash the exterior.

• Replace your house number.

• Seal garage, driveway and walkway cracks.

• Replace your mailbox.

Tech upgrades

Smart technology is another way to boost your home’s value. The digital magazine House Digest notes that homes with smart devices can go for 3% to 5% more than homes without. Smart thermostats are an especially good investment, as they can save around 8% on heating and cooling, according to the Environmental Protection Agency’s Energy Star Program.

Before you start your home project

Ready to break out the toolbox? Call your insurance agent first. They’ll make sure you remain adequately covered during and after the rehab. 

Major renovations increase your home’s value, and therefore the cost to replace it. Depending on the project, you may need to increase your coverage limits. For example, say you’re upgrading from vinyl to aluminum siding. Aluminum is more expensive to replace than vinyl, so you’ll want that reflected in your home policy to ensure you have enough coverage to replace it if it’s damaged. Otherwise, you might end up shorting yourself. 

Also, if you decide to hire a contractor, ask for a copy of their certificate of insurance. This is proof that their policy is active. It also provides a snapshot of their coverage. At a minimum, they should have general liability and workers’ compensation insurance for their employees and any subcontractors (people they contract to do a job). If they don’t have adequate coverage, you could be liable for any property damage or worker injuries sustained on the job. 

Finally, make sure your contractor understands the local building codes, including your homeowners association’s if you’re in one. Contractors should apply for all necessary permits since they’ll be responsible for the work progression and completion. If they ask you to obtain the permits, it’s a red flag that they might be avoiding accountability or operating without a license.

With proper planning and smart choices, you can boost your home’s value without busting any walls. 

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.

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