How You Can Increase the Value of Your House

Featured image by Todd Kent via Unsplash

If you’ve been considering selling your house, doing so now will let you reap high profits. The conventional approaches to house sales include hiring a realtor or just working on the process alone.

Now, you can sell your place to home-buying companies such as Problem Property Pals if you want minimal hassle. No matter which option you proceed with, you’ll notice certain factors fetch a high sale value. In this article, we’ll take you through them.

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What Determines the Value of a House?

You might want to determine the value of your house for several purposes, including sales listing, investment analysis, property insurance, and taxation. But perhaps its most important application is determining a home’s purchase price.

Determining the value of a home is much more complicated than it looks. It involves several variables, including the location, the amenities, and the floor plan. The supply-demand dynamics of the region it is in will also affect the property’s overall value.

Another common factor is its location. Small apartments in Manhattan will likely be more expensive than an average house in Wyoming. This is because the cost of living in Wyoming is far less than it is in New York.

It is also vital to remember that while your house value is directly related to its purchase price, the two concepts are not the same. In fact, your home’s value at the time of its resale may be higher or lower than the purchase price. For example, if a person is under threat of foreclosure, they may have to sell the house at a price lower than its value.

Sales comparison and cost approaches are two standard techniques used to analyze a property’s worth. A sales comparison approach estimates your house value according to the purchase prices of comparable houses in the area. These houses must have been sold under typical market conditions in the last year and have characteristics similar to your home. The cost approach method estimates the price of an improved building by considering the cost of improvements and its depreciation over time.

How Can You Improve the Value of Your House?

Now that you know how house value is calculated, here’s what you can do to improve it:

1. Update Your Finishes

Your house’s presentation to the appraisal agent or the client significantly affects your house value estimation. Small, seemingly superficial changes in your house’s look can substantially improve your house value.

For instance, improving your paint is a relatively inexpensive upgrade that can bump your house value, so make sure you add a fresh coat before showing your place around. Other small finishes include ensuring all your lights work and changing your front door. Also, make sure your house is clean, decluttered, and presentable before you get a value appraisal.

2. Get Energy Efficient Appliances

Leaving behind your larger appliances when you move can help you score a better purchase deal. In that scenario, replace your old electric appliances, such as your fridge, thermostat, or water heater, with more recent models. Older appliances guzzle up far more energy than newer, energy-efficient models, increasing your carbon footprint and energy bill.

As energy-efficient devices lower your living costs, prospective clients prefer a house with such appliances. According to the supply-demand dynamics, the value of a home containing such instruments drives up. With increased awareness about climate change and individual responsibility, the demand for houses with energy-efficient appliances is also rising as individuals try to lower their carbon footprint.

3. Renovate Your Kitchen and Bathroom

Your kitchen and the bathroom are perhaps essential rooms from a house-selling perspective. Poorly built or maintained kitchens and bathrooms can ruin a good deal for you. However, installing the right upgrades here can bump up your home’s value.

Kitchen remodeling gives a return on investment as high as 75%. You can make standard kitchen upgrades by considering your lighting and appliances and improving your layout to make it more functional.

Some of these upgrades could include replacing worn-out countertops with newer ones and changing the kitchen faucet. Consider adding lights inside cabinets. You may want to change your layout, too. Many consider the L-shaped layout as the most functional, so kitchens with that layout will add more to the house’s worth.

Likewise, bathroom upgrades will also increase your house value. A shower/tub combo will likely have a high resale value. But straightforward procedures like improving your shower thermostats and curtains can increase your house value, too. Getting non-slip floor tiles is another upgrade to enhance your house’s value.

4. Improve the Curb Appeal of Your House

The first thing any prospective client will notice is a house’s view from the street. Improving your curb appeal will enhance your house value by a mile, so freshen up your driveway and get your lawn manicured. Add some plants to your exterior, sweep the leaves, and move the bins. Consider getting some garden decorations as well.

Doing these simple tasks before you get your house appraised will take little effort but will increase the price of your home by a decent margin.

5. Increase Storage Space

The more places you can store your belongings, the greater value your house will have. Ensure you have sufficient drawers in your closet, bathroom shelves, and kitchen cabinets. Consider getting walk-in closets with organized storage for your wardrobe and making a dedicated laundry room. Make a drop zone to organize and store technology that is going to be in daily use. These actions may seem small and insignificant, but they significantly improve your house’s value as a collective.

6. Create More Livable Areas

Having more usable square feet of area in your house will significantly enhance your house value as clients look for suitable places to house their families with ease. Consider how many bedrooms and bathrooms you have and if they are enough for a standard nuclear family. Adding guest rooms like a mother-in-law suite will improve your house value.

Endnote

Right now is the perfect time to invest in real estate. You can sell your house through home-buying companies or real estate agents. Several small actions can improve your house value and give you a better quote when you sell your home. Make sure you present a decluttered, clean, finished place to your clients. Also, have good curb appeal and offer a suitable balance between storage and livable places in your house.

Selling or refinancing your house could give you the capital you need to start your dream business. But be sure to improve its value in ways that make sense before you do.

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How You Can Increase the Value of Your House

Featured image by Todd Kent via Unsplash

What Determines the Value of a House?