Looking to increase the value of your home without breaking the bank? Click here for some much-needed insights.
Many people think that the slightest improvement or renovation adds value to their property, but that couldn't be further from the truth. Many renovations do add value, but there are just as many that don't, along with a few that can actually devalue your property.
In this article, we highlight everything you need to know about home improvement projects, from the ones that add value to your property to the ones that can devalue it.
Choosing the Best Renovations That Add the Most Value to Your Home
Large or small projects, which will add the most value to your home?
Convert Your Cellar
According to Savills, cellar (basement) conversions can increase your property’s value by up to 10-15%. Other sources, like HomeOwners Alliance, claim that it can add value by up to 20%.
Loft Conversion
According to Ideal Home, a loft conversion can increase your property’s value by 10-20%. Note that not any loft conversion will do, though; it has to be well-built and appointed properly.
Increase Living Space With a Conservatory
You can increase the value of your property by around 5% with a well-built conservatory. You’re basically adding an extra room, which makes your home more desirable.
Curb and Garden Appeal
Did you know that the buying decision of around 68% of potential home buyers is influenced by curb and garden appeal? A fresh exterior and a gorgeous landscape can increase the value of your property by up to 10% and 20%, respectively.
Home Improvements That Won’t Add Any Value
It’s important to know what improvements won’t add value so you don’t start spending time and money on them.
Extending a Room (and Losing a Bedroom)
As we stated earlier, extending any room in your house is guaranteed to add value. If it’s done at the expense of a bedroom, though, you’re back to square one.
Installing a Swimming Pool
According to HouseLogic, installing a swimming pool can add to the value of your property by up to 7% under optimal conditions.
However, the hurdle here is that the increase in value won’t be enough to cover the costs of installing and maintaining the pool, making this a trivial renovation.
Installing a Wine Cellar
Similar to the previous point, a wine cellar won't garner enough value to cover its installation cost.
Fitting Solar Panels
According to CNBC, solar panels can boost the value of your property by up to 4.1%; not that wide a margin, barely enough to cover the installation cost. They help cut utility costs, though!
Things That Devalue Your Property
It’s one thing to make improvements that don’t add value, but the last thing you want to do is start devaluing your home!
A Messy Exterior
From busted sidewalks to dirty windows to faded or chipped paint, a messy exterior will take away from the value of your home.
A Low Energy Efficiency Rating
A low energy efficiency rating means high utility costs, which, in turn, translates to low property value.
Over Renovation and Personalization
Spending too much money on home improvements and renovations doesn’t always guarantee worthwhile value. Unless you’re addressing a design or structural flaw, don’t go overboard!
Too Much Clutter
A cluttered interior or exterior can lessen the value of your home quite notably, especially if the clutter begins to affect the property’s structural integrity and eventually lead to you having to make a property claim.
Water Damage
If your property suffers from water damage, it’s best to contact a water restoration company as soon as possible so that they can address the problem before it curtails your home’s value.
If you’re thinking about making an insurance claim, we highly suggest that you read up on the difference between a loss assessor and a loss adjuster.
Inexpensive Ways to Add Value to Your Home
What if you’re on a budget? What can be improved that will add value to your property without you spending much?
Paint It
If the interior or exterior of your house is tainted by faded, chipped, or ill-favored paint, it’s time to repaint. This is one of the most cost-effective ways to boost the value of your home.
Add Period Features
Period features, like an attractive fireplace, are guaranteed to add more value to your property. Granted, period features can be a bit costly, but the return is worthwhile.
Get Gardening
Like we mentioned earlier, a garden appeal can make or break a home purchase decision, so if you wish to add value to your home without spending much, get gardening!
Keep It Clean
It goes without saying that looking after and maintaining your property on a regular basis is a surefire way to boost its value in the real estate market.
Declutter
Clutter doesn't significantly impact home appraisals, as appraisers are trained to overlook clutter and focus on the real value of the property. However, if the appraiser detects signs of neglect, like pungent odors, mold, peeling paint, and so forth, it can definitely affect the value of your property.
Improve Flooring
According to the National Wood Flooring Association, around 80% of real estate agents have concurred that installing wooden floors can boost a property’s value by 1-10%, and that’s quite a high percentage if you think about it.
Don't want to install new floors? Just make sure your existing floor doesn't look faulty. All you have to do is get rid of tired linoleum and worn-out carpeting. And if you have scratched-up floors, it's time for floor sanding or a complete make-over.
Conclusion
Having made it this far, you now know that not all house improvements and renovations are worthwhile in the real estate market, and that there are many misconceptions about them.
Hopefully, with the aid of the information shared here, you’ll be able to make the right decision as to which home improvements to carry out and which ones to disregard.
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