This question populates so many websites on the internet that it would boggle your mind, and it seems to have just as many answers that are frequently changing. Some sources suggest installing luxury items and features like a pool in your backyard, a hot tub, or a gazebo. Others suggest something along a more practical vein like a roof replacement, an updated kitchen, or full addition onto your home, like a garage, an extra bedroom or bathroom. However, many of these methods do not have a significant return on their investment due to their high costs, especially if you have these projects financed on the back of a home equity loan.
In fact, most people do not see anything close to a return when they sell their home with these big-ticket upgrades. Because of this, you should make sure that whatever you do to your home is primarily for your own comfort in the here-and-now. Start with smaller projects that you may be able to handle on your own. If you have a green thumb, look into boosting your curb appeal by planting a few new trees or shrubbery. If your budget allows for it, you can consult with a landscape designer. Although landscaping does not have the highest return on your investment, anything you can do on your own will save you money.
If you are determined to increase the value of your home, especially if you are looking to sell it soon, how do you do so without breaking the bank? It’s going to seem too simple, but the tried-and-true answer is to fix cosmetic issues. Giving a facelift to your interior and exterior is as simple as a coat of paint. It’s inexpensive, relatively noninvasive, and adds a proportionally large amount of value to your home. It is also a task that you can do yourself if you have a little bit of skill. If you are in doubt about yourself though, there is always the option to hire a contractor.
Sometimes adding value to your house comes out of necessity though. Optional upgrades like fresh paint, while having a great return on your money, are not the most needed. You may also think of the long-term implications of these renovations and how they might affect you should you decide to keep your home. If for future purposes you decide that you want to access your home’s equity, you can get a reverse mortgage which will consider factors such as your home’s appraised value. When selling your home, your broker will have to fully disclose any defects about the property. Has your foundation settled and you have major structural damage? Does your roof leak because it is so old? These are things that really matter to a prospective buyer and can be a deterring factor if they have been left untouched. It will be much more appealing if a Roofing Contractor has recently replaced your roof. Yes, this may cost you a good amount of money, but sealing your house’s top asset ensures that your home is dry and energy efficient, and it boosts your curb appeal!
A home renovation should not always revolve around being cost-effective. A coat of paint may be a good return on a cheap investment, but spending a little extra money for that roof replacement or addition to your home can be great positives as well. The best place to start is to make a list of potential renovations, prioritize your needs, and compare that to your renovation budget. Start small, and see how far you can stretch every dollar.