With the real estate market still on a pause due to the COVID-19, more people have decided not to put their homes up for sale just yet. Instead, they’ve decided to stay put until the real estate market improves. While homeowners are staying home, some are pondering on enhancing their house to add to its value.
You could be one of them.
Before you add a compact laminate to the bathroom or repaint the walls, know that many home improvement projects do not add value to your home. Some projects can detract from the asking price. But some home improvements that can raise your house’s value.
Image by Paul Brennan
So which home improvement project should you invest in? Which tasks should you park for now? Consider the following changes.
[Side note: before you proceed with any home improvement project, consider your budget. Even if you want to make small or big changes to your home, think about your funding. You can either save up the money or use the equity you have in your home].
Projects that Add Value to Your Home
Landscape and Curb Appeal
Your home’s curb appeal is the first thing potential buyers see, making it an important aspect to consider when selling the house.
Improve your curb by repainting the exteriors and making sure the details are up to par. Also, the lawn should be properly maintained, and the driveway should be paved. Decorate your exterior with drought-tolerant plants, a must-have if you struggle with gardening. If your exterior comes with a nice deck, create a colorful garden, or add some nice furniture.
Remodel the Kitchen
For most people, the kitchen is the heart of the home, which is why it pays to update this area of your house. While there are no figures specific to New Zealand, kitchen remodeling in Australia can raise a property’s value as up to AUD 60,000. You should not, however, make your kitchen grander compared to the rest of your home.
While deluxe kitchens seem like excellent additions, they don’t always fit the rest of the house or the neighborhood. If you plan on selling your home in a few years, consider your potential buyers before starting any remodeling project. Remember: not all homebuyers are willing to pay for a luxurious kitchen.
Instead, invest in energy-efficient appliances. Replace old appliances with energy-efficient models that will not only help potential buyers save money, but are also better for the environment.
Create a Home Office
Since more employees are working remotely, a home office adds value to your home. If you have a spare room in the house, convert it into a home office. Add a desk and make sure there is much space. Also, install grounded outlets and data ports and an additional phone line (if possible).
Reinvent a Room
Reinventing an existing space in your home saves money and adds value to your house simultaneously. For example, reinvent your basement.
If you do not have enough space to add another room in your home, finish your basement instead. A basement space can be easily transformed into a bar, playroom, media room, or any room a potential buyer would want.
Also, consider adding a bathroom when you remodel to increase the value of your home further. Keep the space as open as possible, too. This keeps the basement from feeling cramped and dark.
Apart from finishing a basement, you can also convert an attic to a bedroom. These spaces also work well as craft rooms, especially if they have high ceilings. If you have kids, install swings and other games to create a playroom for them.
Increase Light and Space
Dark and cramped rooms are not appealing to potential homebuyers. Increase the appeal of your property by opening up the house to allow more natural light. Knockdown a few walls to brighten up your space. Skylights can also flood your home with more natural light.
To add more space to your home, consider an open floor plan. It will make your home feel larger and better for entertaining guests. Vaulted ceilings can also create the illusion of more space.
Projects to Avoid
If you plan to move homes in three years, refrain from investing in home improvement projects that will not increase your home’s resale value. Some of the low-value improvements to avoid include:
Your options are endless when it comes to home improvement. But be mindful of your choices. If you plan to remodel, pour your resources and efforts on projects that make your home more appealing to potential homebuyers.
