Your home is a valuable asset, and making improvements to it can boost its value even more (not to mention make it nicer to live in). Of course, redos and remodels don't come cheap - especially in these inflationary times - making it difficult to schedule them. In fact, Bankrate's recent Delayed Financial Milestones survey found that 25 percent of people have delayed home improvements and renovations due to the current state of the economy.
All the more reason, then, to focus on getting the most bang for your redo buck: projects that offer a good return on investment and/or add substantial, demonstrated worth to your home.
Whether your renovation aim is to sell your home soon or make it more habitable for yourself here are eight high-value renovations to prioritize. Some of them are specifically for houses but apartment dwellers will find the rest useful too.
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.
You could call in a professional or 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.
Add usable square footage
Adding more usable space to an existing home can make a lot of financial sense, especially in areas where acreage is limited - and almost always enhances a home's worth.
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. 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 in-law suite (officially known as an accessory dwelling unit) can also be a smart idea. "Most homes do not have this feature so adding one sets you apart from the competition when it is time to sell," said Ross.
Make your home more energy-efficient
Projects that lower utility bills are a smart way to increase the value of your home. Installing a smart thermostat, for example, helps improve efficiency and save money, said Scott Ewald, director, brand & content marketing at Trane.
"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," said Ewald. "Such investments in home tech provides a strong selling point and highlights the home's overall comfort, functionality, energy efficiency and convenience."
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. Some of these will be pricier projects, of course.
Spruce it up with fresh paint
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, said 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.
If you just want to repaint a door or a single room, doing it yourself isn't the worst idea in the world. Painting is one job where labor often makes up the lion's share of the cost.
For bigger jobs, though - especially exterior ones - hiring a painter might be more worth it, given that professionals can buy paint at wholesale prices, know what sort of finishes to use, and be more adept at scaling ladders.
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, said Joe Raboine, vice president of design at Oldcastle, a manufacturer of exterior building products. Some ideas for outdoor hard and soft landscaping upgrades include: a fresh walkway, shrubs, planters, mulching or even a new patio or outdoor kitchen.
Upgrade your exterior doors
Also in the vein of curb appeal, replacing an old front door can work wonders, said Wiedman. In the late 1990s, 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, said Randy Oliver, president of Hollywood-Crawford Door Company. At a 102 percent return on investment, you'll get back more than you spend, according to Remodeling's 2023 Cost vs Value Report.
"The front of the home is the first thing you, your neighbors and prospective buyers will see," said 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."
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. Midrange or modest upgrades actually offer a better return on investment than elaborate ones.
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.
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.
Staging services range widely, from decluttering and depersonalization (for example, removing family photos or specific decor) to bringing in rented furnishings and repainting. 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 the most impact on your home's value.
Bankrate.com (TNS)
