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Best way to increase property value


8 Ways To Increase Your Home's Value

Whether your goal is to renovate your home this year or sell it, making home improvements can increase your home’s value.

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8 ways to increase the value of your home

1. Clean and declutter

To help boost 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 costs between $200 and $225, according to HomeAdvisor.

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

Adding more usable space to an existing home can make a lot of financial sense, and that’s especially true in areas with limited available real estate where land and space are finite.

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. As a result, adding a bathroom, a great room or another needed space to a home can increase function and add value.

Adding a separate mother-in-law suite can also be a smart idea, says Ross, noting that “most homes do not have this feature, so adding one sets you apart from the competition when it is time to sell.”

The national average cost to build an addition is $49,562, according to estimates from HomeAdvisor. The actual cost will vary depending on the type of room you’re looking to add. For example, tacking on a laundry room to your home might be as little as around $8,000, while adding a new bedroom with an en suite bathroom might run up to $100,000.

3. Make your home more energy-efficient

Projects that lower utility bills is a smart way to increase the value of your home. Installing a smart thermostat, for example, helps improve efficiency and save money, says Scott Ewald of Trane, an HVAC company.

“The right smart thermostat will allow a homeowner to control their home’s climate from anywhere, giving them the power to manage energy costs regardless of whether they are sitting on the couch or away on vacation,” says Ewald. “Such investments in home tech — particularly when connected to the HVAC, which is the largest mechanical system in the home — provides a strong selling point and highlights the home’s overall comfort, functionality, energy efficiency and convenience.”

It can cost between $200 to $500 to make this quick upgrade, according to Fixr, or an average of about $300.

Other ways to improve your home’s efficiency and value include replacing old, leaky windows, installing energy-efficient home appliances and adding insulation to your home. Keep in mind, though, that new windows and new appliances will be a much more expensive project.

4. Spruce it up with fresh paint

One of the most popular home improvement projects in 2022 is painting or wallpapering, according to Angi. A fresh coat of paint can make even dated exteriors and interiors look fresh and new — and it’s not that expensive, either.

Begin by repainting any rooms with an “odd” color scheme, says Timothy Wiedman, a former professor and personal finance expert who has flipped homes over his career. For example, did you let your then-11-year-old daughter paint her bedroom hot pink 16 years ago? If so, that’s a good place to start.

Your painting budget will depend on which rooms you’re hoping to give a new splash of color. For example, HomeAdvisor pegs painting a bathroom — usually the smallest room in the house — somewhere between $150 and $350, while a 330-square-foot living room might cost as much as $2,000.

5. Work on your curb appeal

From power washing your driveway to hiring someone to wash your windows and mow the lawn, improving curb appeal can make a big difference in your home’s value. In fact, curb appeal can account for as much as 7 percent of it, according to a 2020 joint study out of the University of Texas at Arlington and the University of Alabama.

Upgrading your landscape can go a long way, says Joe Raboine, director of Residential Hardscapes with Belgard.

Some ideas: a fresh walkway, shrubs, planters, mulching or even a new paver patio or outdoor kitchen.

6. Upgrade your exterior doors

Also in the vein of curb appeal, replacing an old front door can work wonders, says Wiedman. In the late ’90s, he and his wife replaced an old, ugly door with a solid mahogany door with a frosted, oval piece of lead glass. He stained the door himself to save money, and the result was “simply stunning.”

Don’t forget the garage doors, too, says Randy Oliver, president of Hollywood-Crawford Door Company. At a 93 percent return-on-investment, you’ll get back nearly every cent you spend, according to Remodeling magazine’s 2022 Cost vs. Value Report.

“The front of the home is the first thing you, your neighbors and prospective buyers will see,” says Oliver. “Garage doors often take up the most amount of space on the front of your home, so installing a modern glass panel door or a rustic wood door will dramatically improve your home’s appearance.”

7. Give your kitchen an updated look

Many buyers zero in on the kitchen as the central feature of a home, so if yours is outdated, it can ultimately affect how much you garner from a sale. Likewise, if you aren’t able to utilize your kitchen fully due to layout, space or other concerns, you won’t be maximizing the space.

This project, though, will require a lot of money, and you likely won’t get every dollar you invest back. According to the NAR/NARI report, the average kitchen remodel costs around $80,000, and a homeowner would likely get around $60,000 of value when it’s time to sell.

If updating your entire kitchen is too big of an undertaking, a minor remodel could still have an impact on your home’s value — think coordinating appliances and installing modern hardware on your cabinets. Talk with a real estate agent about what makes the most sense and what will command the most dollars from prospective buyers.

8. Stage your home

If you’re planning to list your home for sale, consider skipping cosmetic home improvements and go with a home staging service instead. Seventy-three percent of staged homes sold for over list price — an average of $40,000 higher — and staged homes move off the market nine days faster than the average, according to the Real Estate Staging Association.

Staging costs just over $1,600 on average, according to HomeAdvisor, but the cost varies based on your needs and home. Staging services range widely, from decluttering and depersonalization (for example, removing family photos or specific decor) to bringing in rented furnishings, repainting and more. Simply put, the more work involved to stage it, the more expensive the production will be. A real estate agent can help you determine which staging services would make an impact on your home’s value.

How to pay for home improvements to increase value

Whether you plan to sell your home or just want to enjoy it more while you live there, it’s important to consider how you’ll pay for these value-adding projects. You can work to save the cash to pay for home improvements as you go, but there are also plenty of financing options that can help you remodel your home sooner rather than later.

Personal loan

Personal loans allow you to borrow a fixed amount of money with a fixed interest rate. These loans are unsecured, meaning you don’t have to put your home or other property up as collateral to get approved. Many personal loan lenders let you borrow as much as $35,000 for home improvements — sometimes more — which you can then repay over time. The rates for a personal loan can vary widely, so be sure to compare options to get the lowest-cost loan for your project.

Home equity loan or HELOC

Home equity loans are similar to personal loans in that you receive a lump sum of cash with a fixed interest rate and fixed monthly payment. Home equity lines of credit, also known as HELOCs, work like credit cards, and come with variable rates and a line of credit you can borrow against.

These borrowing options require you to put your home up as collateral to qualify. The good news is, you could score a lower interest rate with one of these types of loans compared to a personal loan or home improvement loan. In addition, no matter which option you go with, the interest might be deductible if you use the money to make eligible home improvements.

0% APR credit card

If you need to borrow a small amount of cash for your home improvement plans, you might be able to skip the loan and go with a 0% APR credit card instead. Many cards have no interest payments on balances for up to 18 months, which can be ideal if you have a smaller-scale project in mind. A credit card can also work well if you’re able to pay your contractor with it.

Just remember: If you don’t pay your balance off by the time your zero-percent APR offer ends, your card’s interest rate will reset to a much higher variable rate, costing you more.

Cash-out refinance

If you have built equity in your home and you’re looking to do a major renovation, a cash-out refinance could provide you with the funds you need while getting you a lower rate on your current mortgage. The refinancing process is just as paperwork-heavy as taking out a mortgage, however, and there are closing costs to consider. If you go this route, take the time to shop around for the best refinance rates so you maximize your savings.

Improvements to increase value FAQ

6 Ways to Increase the Value of Your Home

Owning a home isn’t only an emotional experience. It’s also a financial decision that can pay dividends as you build up equity in your home and see your property value increase over time.

The rate of this property value increase can depend on a number of different factors, including the community where your home is located, local demand for housing, and the economy as a whole. But homeowners can also affect their home’s value over time by making upgrades and changes that increase its appeal and merit a higher selling price.

Whether you’re planning to sell in the near future or you simply want to continue to grow the value of your home investment, there are many steps you can take to increase the value of your home. Here are six proven strategies that can pay dividends when it finally comes time to sell.

 

1. Update your home’s finishes.

Superficial changes can make a bigger impact on buyers than more intensive renovations. Many real estate agents rave about the difference a fresh coat of paint can make—especially given the low cost of this upgrade. 

Some experts argue that a fresh coat of paint throughout your house can increase the home’s sale price by as much as 5 percent. Other simple upgrades, from replacing old light fixtures to changing out your front door, can also give your home a nice bump in value.

 

2. Upgrade to energy-efficient features and appliances.

Energy-efficient upgrades reduce your utilities bills while you own the home. When it comes time to sell, these upgrades will also offer more appeal to buyers, many of whom are interested in energy-efficient features to lower their own costs as a homeowner.

If your home currently features old appliances that guzzle energy and date your interiors, an upgrade—even if it’s installing modestly priced modern appliances—can help you net a higher sale price.

3. Freshen up your curb appeal.

Simple landscaping features such as new plants and fresh mulch can help your home make a great first impression.  

These changes don’t cost much, and you can do many of them on your own. Both potential buyers and appraisers will be influenced by this visual impact.

 

4. Put your money into your kitchen and bathroom.

Many real estate agents will tell you that kitchens and bathrooms are the rooms that sell homes. 

In many cases, a kitchen or bathroom remodel can offer a 100 percent or greater return on your investment—and that number could be even higher depending on the finishes you choose, the amount of labor you’re willing to do yourself, and how much of an upgrade these changes offer over your home’s current condition.

If you have a renovation budget, kitchen and bathroom upgrades are the best way to increase the value of your home.

 

5. Finish off your basement or other unfinished spaces. 

Finished square footage is an important calculation when determining your home’s fair market value. 

Even if you don’t want to invest in a heavy-duty makeover, simple steps like putting up drywall and adding carpet to a room can turn unfinished space into a profitable addition to your home. This allows you to increase the value of your home by expanding the footprint of this finished space.

 

6. Clean and declutter before showing your home.

When you’re selling or getting an appraisal on your home, a little deep cleaning can go a long way. Take this opportunity to dust in high places, wash your baseboards, give floors a good mop, and haul excess junk and clutter to a donation center.

 

Bonus tip: Use a fresh coat of paint to revive worn spots.

Is your home looking a little worn, inside or out? A DIY paint job carries a low cost for materials, but it can have a big impact on the eye appeal of your home.

Whether you’re painting your living room, bedrooms, or even just the front door of your home, a bright coat of paint can make old surfaces look brand-new—and add some instant charm to your home.

Selling a home can be a great way to pocket some profit after taking good care of that property as your equity grows. With some simple, budget-friendly tricks to beautify and update your home, you can push that potential sales price—and your earnings potential—to its upper limit.


Discover more financial strategies for leveraging your home’s value—download The Smart Homeowner’s Guide to Refinancing today.

*Originally published June 2020. Updated March 2022.

How to raise the cost of housing and stand out with the help of repairs :: Design :: RBC Real Estate

Photo: Duravit

According to CIAN experts, demand for housing in Moscow is gradually declining, returning to 2019 levels. The number of transactions in the real estate market in August 2021 fell by 11% compared to the previous year. However, the volume of supply continues to increase. This situation necessitates homeowners to pay more attention to the process of preparing an apartment for sale.

What affects the cost?

From a large number of factors affecting the final cost of housing, there are several main ones. First of all, this is the location: proximity to the city center and the presence of parks within walking distance. Also, an important parameter is the developed infrastructure and the proximity of shops, schools and kindergartens. All these factors cannot be changed, however, in addition to them, there are a number of additional ones that can significantly increase the value of real estate.

adv.rbc.ru

1. High-quality repair

A win-win option for increasing the value of an apartment is a solid repair using high-quality finishing materials. Windows should ideally have double-glazed windows. This is especially true if the windows overlook the road. But if it is not possible to install new double-glazed windows, you can restore the old frames. Many buyers are looking for apartments in the "call in and live" condition - this will increase the cost of housing by at least 5% compared to analogues. If you plan to make finishing a selling point, invest in solutions that are as neutral and durable as possible.

As for the interior, an intricate design can be a reason for the buyer to bring down the price, based on the calculation of the cost of dismantling and overhaul. In addition, it is worth removing all unnecessary things. Apartments that have an abandoned and cluttered appearance not only look worse, but they also take much longer to sell. Whereas a half-empty or completely empty apartment will look not only more presentable, but also more spacious. The more free space you have, the better it will be perceived by buyers and the more expensive it will be able to sell. The best solution would be to use calm tones in the interior and a minimal set of discreet furniture.

2. Create a cozy atmosphere

Preparing to sell a property also involves buying some things that create an atmosphere. The first impression of an apartment is the most important. Small details can make a big difference in the perception of an apartment. Curtains on the windows, a tablecloth on the table, a potted plant will help customers feel at home. Among other things, cozy details will help to get beautiful shots for the announcement of the sale of housing. Light will help improve perception. Screw in more powerful light bulbs and turn on all the lights before watching - this will create a sense of celebration. Poorly lit rooms look repulsive.

3. Pay attention to the kitchen

It is the kitchen that is the heart of the apartment and its home, where they gather for family dinners and arrange sincere meetings with friends. Old tiles, a leaky faucet, stains on the walls and a dirty hood can, if not scare away potential buyers, definitely negatively affect the value of a property. Thoroughly wipe all surfaces, wash the stove and sink, replace faucets and furniture that have become unusable, get rid of ancient cupboards and old dishes with chips and cracks. The kitchen should look clean and literally shine. Running water filters, convenient dish storage systems and exquisite wine racks all add bonus points to your kitchen when viewing an apartment.

4. Don't forget about the bathroom

Plumbing, if possible, should be new, modern. Everything new is always more attractive than used. Rusty faucets, a cracked toilet, and streaks in the bath will definitely not work in your favor. In addition to the fact that the bathroom and toilet should look decent, all plumbing should work properly. If something is out of order, do not skimp on the services of a master or the purchase of high-quality plumbing, otherwise the sale of an apartment can drag on for many months.

Due to the pandemic, hygiene has come to play a special role. A unique feature of your bathroom can be the German brand Duravit, whose products provide maximum antibacterial protection. Toilets from the White Tulip and ME by Starck collections are equipped with the innovative HygieneFlush technology, which guarantees perfect flushing of the entire inside of the toilet with just 4.5 liters of water. All new HygieneFlush toilets come standard with HygieneGlaze, which destroys 90% bacteria, and after 24 hours - 99.9%. Thus, the user receives a double degree of hygiene. The Duravit brand is renowned for German quality and superior performance, which can greatly improve the image of your property in the eyes of the buyer.

Is it possible to raise the price of the apartment?

The cost of an apartment is made up of many factors. Moreover, some factors (such as repairs, for example) can affect the final profit of the seller both in plus and in minus.

The market value of an apartment is not an idle interest

The desire to find out the price of an apartment is often not justified by an idle interest. If you are planning to exchange or sell an apartment, other real estate transactions or a mortgage loan are planned, it is simply necessary to know the real market value of housing. Everyone who has ever tried to evaluate real estate on their own, without the help of real estate market professionals, knows how complicated the process of appraising an apartment is.

Of course, there will be no problems with finding out the average cost of an apartment: you can use online calculators on thematic portals or simply dial the number of any real estate agency. But you need to understand that the difference between the average cost of the same type of housing and the real market value of your apartment can be up to 10-20 percent, or even more. And at today's real estate prices, that interest will translate into pretty solid money, your money. Therefore, the more accurately you can find out the cost of an apartment, the more likely it is to sell it successfully.

What affects the cost of housing?

Each seller wants to make the apartment more attractive to the buyer, to present it in a favorable light. By understanding what determines the cost of apartments, you will be able to show the buyer the advantages of your property and justify the set price in the best possible way. It is important to understand here that the inflated cost of housing is not always in the hands of the seller: the apartment will be sold for a very long time, you will lose a lot of time, and if prices drop on the market, you will also lose money. Therefore, it is in your best interest to approach the issue of pricing as objectively as possible. It's no secret that most sellers think that their apartment is at least in some way, but definitely better than similar options.

The main factors determining the cost of apartments are location (prestigiousness of the area), transport accessibility of the area and the quality of infrastructure, number of storeys and type of building, layout and technical condition of the property. Any of the listed parameters to some extent affects the market value of housing, and only a professional can evaluate the real total effect. A good way to find out the cost of an apartment is to invite an experienced realtor home, or even better, order a real estate appraisal from an appraisal firm. This will allow you to reliably find out the real price limits for your home. In addition, it will be extremely useful to hear about the pros and cons of your apartment from real estate market experts.

Is it possible to increase the attractiveness of the apartment for the buyer?

The fundamental parameter that has the maximum impact on the cost of an apartment is location. It is, first of all, about the prestige and other characteristics of the area. Nothing can be done about this factor as such, but it makes sense to try to find advantages in the location of your housing within the area. For example, you can carefully evaluate another important parameter that affects the cost of apartments - infrastructure.

Convenient transport infrastructure can significantly increase the attractiveness of your apartment in the eyes of the buyer. These can be convenient transport interchanges, the proximity of a metro station and ground public transport stops. Also pay attention to the social infrastructure: kindergartens and schools, clinics, parks, shopping centers, cultural and sports institutions, garages and parking lots, etc. In principle, you should proceed from the fact that you cannot know in advance what for a potential buyer, it is more important what exactly will make the cost of the apartment in his eyes quite justified. For example, a key indicator could be the fact that children can walk to a nearby school without running across the street. Therefore, in a conversation with a buyer, it is worth giving as many positive arguments as possible, emphasizing the attractiveness of your home.

Currently, more and more residents of megacities are paying attention to the environment, and the presence of squares and park areas near your home will also be a significant plus. Also a significant factor for many was a prosperous social environment, and here we are talking not only about good neighbors, but also about the social situation in the area as a whole. Of course, the ecology and social environment will not raise the cost of an apartment to the sky, but they can become a fairly weighty argument for a potential buyer.

Redecoration and cost of the apartment

The good condition of the apartment is a rather serious plus for the buyer. Anyone wants to buy housing in a decent technical condition, "killed" apartments are often sold only at significantly lower prices. However, is it worth it to tune in to serious repairs before buying a home, and will such an investment pay off?

As experience shows, it makes no sense to start a large-scale renovation in an economy class apartment before selling it. This, of course, will raise the cost of the apartment, but the costs are unlikely to pay off, just waste your time. But to make cosmetic repairs, putting the ceilings in order and sticking new wallpaper, is a good idea. Of course, it is imperative to make sure that cleanliness reigns in the apartment during the shows, it is advisable to put things in order in the traditionally problematic area - on the balcony (loggia). Installing new sockets and switches will not take much time, but it will add another plus to the appearance of the home.

Experts believe that improving the condition of your landing will also benefit: at a minimum, clean up before the arrival of buyers. This will help you from the very beginning to create a more comfortable psychological state for the buyer, which will be an additional advantage during the auction over the cost of the apartment.

Some other laws apply in the luxury housing segment. A good quality repair in an elite apartment or business class housing, as a rule, pays for itself, and also raises the cost of the apartment. Expensive real estate is acquired by wealthy, and often very busy people who simply do not have the time and desire to do repairs. Often they themselves are looking for an apartment after a good repair, sometimes - together with furniture. If you are preparing an elite apartment for sale, it makes the most direct sense to use the services of a professional designer - this will have a very positive effect on the cost of the apartment.

It is worth saying a little about redevelopment, because many homeowners have tried to improve the consumer properties of apartments, changing the layout at their discretion. Once upon a time, independent intervention in planning decisions was very fashionable, but now permission is needed for redevelopment. According to experts, at least 80% of redevelopments in apartments are currently not legalized, and the lack of permission for redevelopment will certainly be a problem when making a deal. Therefore, in order not to lose the buyer, you will have to reduce the cost of the apartment.

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