No one is quite sure what is going to happen with the real estate market in the US, which means buying a new house is a risky proposition right now. No one wants to buy new townhomes at the top of the market, which is why so many people are opting to fix up their old house and hopefully add equity. There are things you can do to increase the value of your home and build equity. Making smart choices about where to spend your renovation budget is important for resale value.
These are the three best projects to add value to your home.
- Remodel an old kitchen
When you do a kitchen remodel, it increases the value of your home big-time. In a buyer’s market, people are looking for an upgraded and functional kitchen. The money you put into renovating your kitchen will come back to you. Statistics show that if and when you decide to sell, you can recoup anywhere from 60-120% of your renovation costs.
The key to your kitchen remodel is to not overdo it and get all the high-end appliances and upgrades that will put you over budget. You can add a lot of charm to your kitchen that has nothing to do with the amount of money you spend. When possible, try to use old materials and resurface versus buying new. Also, don’t throw money into appliances that aren’t worth the money just because they have the “right” brand name. You will never recoup the cost of a designer kitchen.
One of the best ways to upgrade your kitchen is by adding a fresh coat of paint. This is actually true throughout the house, but in the kitchen either painting the walls or the cabinet doors can make your kitchen look brand new. It isn’t about spending a whole lot of money; it is the little things that count. Consider trading out old faucets for new ones with a more upscale look, and think about changing out the cabinet hardware to refresh an old space.
Finally, consider your kitchen’s lighting. Adding downlights can change the overall look and add texture to your kitchen as well as make it more functional. When possible, change out the countertops and use materials that are sturdy, but look nice too. Granite and quartz are two really great options, both for looks and durability.
- Bathroom addition
When you add a bath to your home, you automatically increase its value — but it isn’t always an easy thing to do. Sometimes you have to worry about plumbing limitations, and in cold weather climates, you might have to open up walls to find space. It isn’t coded to have to pipe on exterior walls in some regions, so make sure that you know what your building code allows before you begin any renovation project.
You don’t have to pay a fortune to add a bath. Because you won’t recoup the additional upgrades that you put in, try to stick to home improvement store fixtures for toilets and sinks. Using high-end details will only put you over budget and will ensure you won’t recover your investment and your energy spent.
- Reinvent a space
If you have an extra room that is just sitting empty, consider converting it into a spare bedroom. Adding a bedroom will increase the value of your house and how it competes with the rest of the market. You have to have enough room to fit a closet, however; in most states, a room can only be considered a bedroom if it has its own closet. But if you have enough space to niche out a small closet in the room, then you will be adding a lot of value for a very low investment.
If you are either looking to upgrade your home or to sell it and get a return on your investment, these are three great ways to increase the value of your home, make it better than other houses in your area, and spend a little to make a lot. Stick to the basics and don’t get carried away. In a buyer’s market, people aren’t looking for the upgrades as much as the overall space and functionality of the home.