What Makes Your Property Value Increase? The Best Things You Can Change For Your Home
Investing in your home to increase its value is a smart move – most of the time. If you’re planning on updating your home, it’s important to know when to go for it and when to reconsider.
65% of homeowners in America believe that property values are on the rise, according to a Nerd Wallet survey. Also, a considerable segment of US homeowners believes that their home is their most valuable asset. If you’re like most homeowners who are planning a renovation, you’re probably wondering, “What makes property value increase?”
Proud homeowners take care of their properties. However, you don’t have to spend your last dime to get the most out of your home. Furthermore, you can get the most out of the investments that you do make by choosing upgrades wisely.
To learn about what will make your property value increase, continue reading.
What Makes Property Value Increase?
As a Missouri homeowner, you must stay informed about the value of your home. What’s more, you must take the right steps to make sure to maximize your home value.
For example, you can keep track of your home’s value using the FHFA House Price Index Calculator. You can also track your home value by working with an appraiser or real estate professional.
Property values fluctuate with the housing market. It’s good stewardship to stay informed about the value of your home, especially if you’re planning a renovation. With strategic planning, you can maximize the long-term value of your property.
If you feel like your home needs an update, you’re probably right. There are several improvements that you can invest in to bring your property up-to-date.
Before you begin your project, establish a budget. In part, the current value of your home will dictate how much you should spend on a given renovation.
The right moves, however, can yield remarkable results. For example, you can increase the value of your home greatly with a well-placed addition.
There’s another reason why you should know the value of your home. There’s such a thing as over renovating a home.
The problem with over renovating is that you’ll only get so much from your improvement, no matter what you do. For example, you’re not going to get half a million dollars for your home in a neighborhood where comparable homes cost $200,000.
It’s a Digital World
Still, some upgrades are worth it. For example, the world is getting smarter. Today, many consumers couldn’t live without a range of electronic devices.
A lot of smart technology is expensive. However, some is relatively affordable. What’s more, smart tech pays dividends.
For example, a smart thermostat is a good investment. It can help you cut down on utility bills.
Also, smart plugs can help you save energy while enabling you to turn everyday appliances into intelligent devices. Meanwhile, air purification systems and intelligent HVAC systems can help to keep you healthy and enable you to operate your home more efficiently.
Choosing Home Upgrades
The look of your home is another thing to think about when considering an upgrade. A great-looking home has a higher value.
Although it may seem counterintuitive, you can also increase the value of your home by taking things away. For example, you can get rid of an unneeded wall to open up space inside your home.
Also, how are your appliances holding up? Take a look around and see if it’s time for new ones. For example, consider feature upgrades, such as:
- A dishwasher
- An in-home cell phone booster
- High-speed internet
- Various kitchen appliances
Even if you never put your home on the market, these kinds of value-added features will improve your quality of life. Besides, you may not work from home today, however, you may find that you’re doing so soon as the world increasingly transitions to remote work.
In a world of technological innovation, green is a growing trend. You should maintain any foliage or landscaping on your property. Vehicles, smog and pollution are serious social issues. As a result, more people are embracing the benefits of live flowers, trees and gardens.
Also, consider giving your home a fresh coat of paint. While you’re at it, also take a look at the interior wall coverings. You should also consider updating the fixtures inside and outside of your home, such as fences, signage, lights and your rain gutter.
Thinking Outside of the Box
When you’re sizing up your home for improvements, step back and take a look at the big picture. You may have a large property, for instance, but everything seems cramped inside.
In this case, it’s a good idea to think about rearranging or removing a few walls. Alternatively, if you’ve recently started working from home, it may make sense to add an extra room for an office.
As time passes, manufacturers create products that help property owners run their homes more efficiently. For example, upgrading your doors or windows could give you a big boost in energy efficiency.
Also, think about sustainable design. If the prospects of solar energy or a terrarium for an indoor garden sound interesting, you’re not alone. Today, many people are embracing the idea of living off the land.
If you have a sizable property, are you making the best use of that space? For instance, converting an unused, small bedroom to a second bathroom could make sense under the right circumstances.
It’s All About the Look: Why You Should Invest in Home Improvements
If you want to sell your home one day, now is the time to start preparing your property. Any features that look outdated are going to diminish the value of your property and make it harder to sell.
You don’t need heated towel racks and Italian marble floors. Your return on these luxury items will most likely disappoint you.
However, you can recoup all the costs of a kitchen renovation. Meanwhile, you’re only going to recover about half the price of those fancy towel warmers and high-end stones for your flooring.
The same goes for your bathroom. When upgrading your bathroom, think midrange improvements.
You can get back most of your investment in the bathroom upgrade by making sensible choices. However, heated flooring, custom cabinets and designer light fixtures will only return around half of your investment.
You can also invest in improvements that will reduce the upkeep required to maintain your property. Maintenance is a big concern for homebuyers.
For example, by investing in mechanics such as siding, a furnace, roofing or a water heater, you can ease buyers’ fears about property maintenance.
It’s a Good Time to Invest in Your Home
There’s a shortage of affordable homes in the United States, according to a report published by CNBC. That trend is likely to continue.
Around ten years ago, homes lost a third of their value. That loss led to a severe economic depression. Now, however, housing prices are on the rebound.
Still, supply cannot keep up with demand. As a result, rising property values are now the norm.
Consumer salary growth has remained stagnant at under 3%. Nevertheless, housing prices rise more than 5% every year. The CNBC report says that a similar upward trend will continue.
Accordingly, it will remain difficult for consumers to buy homes. Despite these challenges, existing-home sales will rise, if only slightly, according to the report. The story suggests that existing home sales will increase to 5.60 million units per quarter, up from 5.46 million units.
These sales are far below the peak of 7 million units per quarter during the last housing boom. These combined factors will keep housing prices up, making them less affordable.
Resultantly, you must compete with limited sellers if you want to turn over your home. Therefore, consider your upgrades wisely.
Don’t Make These Home-Improvement Mistakes!
If you make a mistake, you’ll lose money on your home upgrade. Therefore, it’s a good idea to make a plan before you commit to a project. By doing so, you can avoid home-improvement mistakes.
Things go wrong. Accordingly, set aside 20% of your budget for unforeseen events.
Also, invest in an upgrade that complements your current architecture. You don’t have to choose updates that are exactly the same as your existing architecture. However, they should complement it.
Also, think about the functionality of your home. It may seem like a good idea to break up a large space into rooms. However, you’ll decrease the value of your home if you turn it into a traffic pattern nightmare.
It’s also smart not to get too caught up in trends. Trends are great. It’s how we find out about new ideas.
However, don’t forget about resale value. Trends last for a short time. However, good design is timeless.
Also, watch the timing of your purchases if you’re going to invest in appliance upgrades. You can pick them out, but wait into the last minute to purchase them.
Things change. For instance, you may find that the appliances you want don’t work well with your new floor plan.
Finally, invest in the best quality materials that are within your budget. There’s no point in doing a home-improvement that you have to redo in a few years.
Staying Focused: Formulating a Plan
Overall, you should focus on creating long-term home value with your improvements. Stay away from expensive improvements that are merely cosmetic. A great-looking, durable floor covering is a much better investment.
It’s also a good idea to enlist the help of a professional when planning upgrades. A skilled contractor or designer can help you avoid costly mistakes. They can also help you fine-tune your renovation project to maximize the value of your property.
As you plan your upgrades, think about the entire scope of the project. This mindset will prevent you from making impulse buys that don’t fit into your overall plan. Furthermore, you will create a cohesive look with the result of your upgrade.
Finding a Contractor for Home-Improvement Success
It’s difficult to tell if someone’s good at their job if you don’t work in their field. However, that’s what you must do when searching for a good contractor. The key to overcoming this challenge is to do research.
You’ll have to choose from a pool of qualified contractors and narrow down the best candidates. Begin by making a list of various tasks.
For instance, you’ll need to ask for referrals, check licenses and review contractors’ previous jobs. You’ll also need to evaluate competitive bids. These bits of information will help you to come to a final decision.
Ask your friends and family members about contractors they’ve worked with in the past. Also, check out online reviews of various contractors in and around St. Louis.
A good contractor will make it easy for you to evaluate their work. They’ll gladly provide referrals and examples of completed jobs.
If a contractor cannot provide this kind of information, it’s probably a good idea not to choose them for your renovation. Also, stay away from contractors who don’t have the basic trimmings of a business, such as a website, a social media presence and online reviews.
You may want to start out evaluating around 10 to 15 contractors. Eventually, you should narrow the field of potential contractors down to two or three candidates.
Trust Your St. Charles or St. Louis area Remodel Project to Experts
Now you know what makes property value increase. However, a nice, tiled foyer or a new kitchen upgrade won’t add a lick of value to your home unless you hire a contractor who will do the job right.
Before-and-after photos are a great way to assess the work of various contractors. Also, ask for blueprints or sketches to find out how a contractor might approach helping you improve the value of your home.
XteriorPro has a well-earned reputation for compassion, integrity and honesty. Our industry awards and reviews are a testament to the work that we do in the community.
Contact us today for a free quote for your home improvement project.