As a REALTOR® I often get this question from homeowners that are considering selling.  While homes do build equity over time as home values increase and homeowners pay down mortgages, there are also other things homeowners can do to increase the value of a home.  However, I would encourage anyone who is doing a project for the sole purpose of increasing the value of a home to talk with a local REALTOR® first because not all projects add value to a home.  

What to know about how to increase the value of a home

The value a home improvement adds to a home can depend on the home itself and location.  For example, adding a swimming pool to a home in Maine that may only get used for six weeks out of the year won’t add value to the home.  Adding the same swimming pool to a home in Florida would add value.

It is also important to understand that most improvements won’t add a dollar to dollar increase in your home’s value.  For example, finishing a basement will provide a seventy percent return on investment (what is ROI) meaning that if you spent $10,000 (just a fun example number) then the value added could be $7,000.

Home improvement projects to increase the value a home

Minor Kitchen Remodel  In this remodel, the homeowner focuses on giving this space a refresh by upgrading countertops, replacing older appliances with new ones, switching out the doors to cabinets, adding handles, changing the flooring, and putting fresh paint on the walls.  According to JLC (the Journal of Light Construction), this type of remodel yields a ninety six percent ROI.

Garage Door Replacement  Upgrading the garage door can help boost curb appeal and energy efficiency.  New doors with better insulation help to regulate the temperature in the garage and rooms surrounding it.

Add a deck  Replacing a small stoop out to the backyard with a larger deck can increase the value of a home especially when this area is staged as usable living space.  According to JLC, the addition of a 16 X 20 deck brings a eighty three percent ROI.

Finished Basement  This project is valuable because it adds more livable square footage to a home.  Depending on the size of a basement, an additional bathroom and bedroom can also be added.  These improvements appeal to buyers for many reasons such as having a multi-generational household, needing space for children, or having a rental possibilities.

Changing the Front Door to Steel  Low maintenance steel doors are appealing to buyers.  Changing the front door to a steel one can have a ROI of up to 188%!  This change can also help homeowner’s to increase curb appeal on the outside and let a little more light in on the inside.

Fresh Paint  A fresh coat of paint in a neutral color on the walls of a home can add value.  While it won’t be nearly as much as a finished basement, fresh paint on walls helps a house feel modern and updated.  Buyers appreciate seeing the care sellers are putting into a home and this reflects in their offers.

Are you thinking about tackling one of the projects to increase the value of a home? Check with a local REALTOR® first to find out how this project fits into the local housing market and what buyers are looking for in a home.