7 Best Home Improvements that Add Value

For every homeowner, there’s always the reality that one day you’re going to move. Whether it’s in the next few months or off in the far distant future, the renovations and improvements you do to your home matter for later. But what home improvements add value to your house will make you money when it’s time to get cash for your house

After all, some of these decisions have huge financial implications and require large investments that you will need to live with until you sell your home. But before we suggest our best home upgrades, let’s talk about budgeting tips.

Best budgeting advice for home upgrades that add value 

No matter why or when you’re planning on starting your renovation on your home, it’s important to understand some budgeting basics. 

Pay for improvements in cash

As a generalization, you should always plan to pay for improvements in cash. This means setting a tight budget for projects. A drawback of this method is that your capital is tied into the property until you sell it. 

Then again, you’re completely avoiding the need to pay debt installments to a creditor and the attached interest.

Using financing for renovations

Many homeowners will have to utilize financing options to complete the best home improvements to increase the value of their property. This is especially true if they’re unable to put away a lump sum of cash, and are planning to sell the house fast. 

There are two routes to take when seeking financial help. But note that most lenders will require that the loan amount and your mortgage added together are total less than 90% of the house’s pre-renovated value. 

Second Mortgage

This method allows you access to a lump sum of cash. Like your original mortgage on your home, you’ll be charged repayments at a fixed interest rate. 

Home Equity Line Of Credit (HELOC)

A Home Equity Line of Credit (HELOC) is secured by the equity in your home and works like a revolving credit line. This means you can borrow what you need, whenever you need it, but this loan is made to you with variable interest rates. In layman’s terms, your repayment amounts can fluctuate.

If you’re in a financially tight spot, we’d suggest not renovating your house right before you sell. As most easy home improvements often don’t equal a good return on investment (ROI).  

Now that you know your budgeting methods, let’s talk about what are the best home improvements to increase the value of your house. 

7 projects that are the best home improvements to add value

With any home, there are hundreds of jobs that could be done. But what are the best upgrades to sell a house? Let’s take a look at them: 

Kitchen upgrade

The heart of any home is the kitchen. It’s where the family gathers to share their stories. We feel like it is the main highlight feature of any home. A kitchen in a poor state can easily scare away any eager buyers. 

But, be warned about the level of investment you pour into your kitchen. According to Remodeling magazine’s Cost Vs Value National Data Report for 2020, a major kitchen remodeling, on an upscale budget, saw a return of 53.9% on investment. Compare this to a minor kitchen remodel in the mid-range segment, which saw a 77.6% return. 

This jump could be attributed to the fact that often a major kitchen remodeling can eat through the budget in no time, leaving the rest of the home untouched. If the heart of the home doesn’t match the rest of the house, it can be off-putting for potential buyers. 

Remember, a minor paint job goes a long way to transforming a space. Also, replacing inefficient appliances can also be a big drawcard, as energy saving is long term saving. It also looks good to the environmentally-conscious buyer. 

Bathroom additions

Once again, according to Remodeling Magazine’s report, you’ll be better off not going overboard when upgrading the bathroom, with a cost recoup of around 64% for a midrange renovation. 

If your property is a one bathroom home, it might be wise to find additional space to fit an additional bathroom. While the size of this addition is dependent on how much room you can spare, whether it is under a staircase, in a subdivided room, or a transformed closet area, for any ensuite bathroom you’ll need at least 18 square feet. And for those looking to add a full bathroom with bath and shower, you’ll need to find double that floor space. 

For those looking to cut costs, remember you can by choosing different fittings and finishes in your bathroom. 

Judge your house by its cover

Curbside appeal is a major factor in the modern market. It’s the first image most potential buyers will come across when browsing through properties on the web, or see when they drive by the for sale sign.

The two highest returns on investments, according to Remodeling Magazine’s report, is manufactured stone veneer at 95.6% recouped, and garage door replacements at 94.5% recouped. 

What your house looks like to the outside world – matters. 

Energy-efficient windows

Modern property buyers are aware of the importance of good windows in a home. Poor windows are not only an eyesore but are also energy inefficient. And in 2020, efficiency equals savings in the long run. 

According to Remodeling Magazine’s report, vinyl window replacements saw a 72.3% recoup on their investment. In certain states, you might also be able to cash in on green energy tax credits. 

Another feature of energy-efficient windows is better sound-proofing which is handy if you want to block out the Saturday neighborhood grass-cutting onslaught. 

Outside entertaining

Nothing is more American than enjoying the outdoors with family and friends. And when you have access to your own impressive deck and BBQ, you’re living the dream. 

Adding an additional deck to your home might be a project to undertake while you are still enjoying the house. It’s a feature a potential buyer loves and allows you to potentially. 

Remodeling Magazine’s report says that by adding an additional wooden deck you could recoup 72.1% of the initial investment. While this is a labor-intensive job, you can save a substantial amount by taking on the task yourself. But, before you head off to Lowe’s, make sure to crunch the numbers around the cost of purchasing the tools required for the job. 

And if you’re not willing to put the blood, sweat, and tears into the job, make sure to shop around for the best contractor quote. 

Insulation is key

In the modern world, having the best insulation in your home can save you a bundle. Heating and cooling a home is an expensive monthly cost. If you’ve invested in these solutions before selling your home, you’re in fact passing on these savings to the next buyer. 

Leaks in insulation can be discovered all over the home:

• around doors and windows
• lighting fixtures
• attic entrances
• electric sockets and light switches
• from the basement
• any outlets to the outside of the house

The details matter

As the expression goes, “The details matter.” 

The same is true for your home. A fresh coat of paint, a fixed leak in the roof, replacing aging wooden fixtures, and removing mold from the ceiling in the bathroom: It’s these details that potential buyers notice. 

Simply making sure that the details are attended to can mean you’ll find the right buyer for your home. 

Now that we’ve addressed the best home upgrades that will add value to your house, let’s touch on the projects you should avoid. 

Projects to avoid

Swimming pools

It may seem odd, but the idea of owning a pool is a divisive topic. Owning a swimming pool is a commitment for a potential homeowner, who will need to clean and. maintain it very regularly. Also, for young families, it is a safety hazard for their children. And with its big price tag, you’d be better off avoiding it. 

High-end landscaping

While many love walking through amazing gardens, investing in the upkeep is something that scares many people. Don’t confuse this with the curbside appeal factor, as this is directly focused on plants, lawn, and garden beds. 

Unless the next buyer is a keen gardener, it is unlikely they’ll be willing to take over your project. 

If you need to sell your house fast 

Many readers of this article will have two problems. First, access to the capital, and second, the motivation to take action on any of these renovations.  Upgrading a home also takes time, which we all know costs money. So, now you’re looking at selling your house as-is, but who will buy it? 

The short answer: House Buyers of America. We buy houses for cash, fast and hassle-free