If you are a homeowner, you have probably wondered how to increase the value of your home without draining your savings account. The good news is that you do not need a six figure renovation budget to make a meaningful difference. In fact, some of the highest returning projects cost surprisingly little, while the most expensive upgrades often deliver the worst returns.
The new Cost vs. Value Report and industry experts say homeowners who invest wisely can improve their home’s resale value 5% to 15% by doing targeted improvements. On a $400,000 home, that translates to $20,000 to $60,000 in added value.
The real secret? Knowing exactly where to put your money and where to hold back. Let us walk through ten proven tips that actually work.
How To Increase the Value of Your Home
Here are most effective tips to increase the value of your home. From high-ROI garage door replacements to minor kitchen remodels, learn which upgrades pay off.
Replace Your Garage Door
This may come as a surprise, but the number one investment you can make is your garage door replacement. The Zonda’s Cost vs. Value Report found that a garage door replacement comes in dead last on the list of home improvement projects for 2014 and 2015, with a 268% ROI—the top ROI of any project on the list for the past two years. The $4,672 you invest in a new garage door will bring approximately $12,507 to your home’s sale price.
What is the significance of this? Your home’s initial appearance to the outside is created by its curb appeal. An up-to-date, contemporary garage door exudes a sense of cleanliness and upkeep of the home. Curb appeal can pay for itself!
Upgrade Your Front Entry Door
A new steel entry door in front of the garage door provides a 216% ROI. This is another exterior improvement that has a lot of impact. Opt for a neutral shade that pairs well with the decor of your home, such as classic black, deep navy, or warm woods. Do not go all out with colors perhaps too quirky or perhaps trendy which can repel potential buyers.
A well-constructed entry door is more than just good looking. It increases security, promotes energy efficiency and is a great focal point to draw buyers in.
Add Manufactured Stone Veneer
The average return on investment for manufactured stone veneer is between 153% and 208%. This is an exterior improvement that consists of installing a light-weight stone facade that is applied to the bottom of your residence. It will give the property instant value and will be a high end look.
This is one of those projects that you can’t see the wood for the trees. Stones are seen by the buyer as a premium, durable and low maintenance material, which is why they are willing to offer more.
Refresh Your Kitchen Without Going Overboard
The kitchen is the central area of the house and is the first thing that buyers see. However, there is a catch: a big kitchen remodeling only recoups about 36% of your investment. For every $10,000 that you spend on a full gut, you will be spending less than $4,000 on the sale price.
On the flip side, a minor kitchen remodel delivers an impressive 85% to 113% ROI. What does a minor remodel look like?
- Refacing existing cabinet doors instead of replacing the entire box
- Updating hardware with modern, sleek handles and knobs
- Installing mid-range countertops like quartz or granite
- Replacing dated appliances with energy efficient models
- Adding a fresh backsplash
Maintain the structure of the layout. Costs are increased by moving plumbing or walls but the value is not proportional. The aim is to revitalize the kitchen, not to make it a showroom.
Update Your Bathroom Strategically
Another high impact area is bathrooms. The average for a midrange bathroom remodel is that it pays back 60% to 80% of your investment. Up to $14,000 may be added to the value of your home with a $20,000 remodel.
Focus on:
- Replacing old fixtures with modern, water efficient options
- Reglazing or replacing the tub and shower surround
- Updating the vanity and countertop
- Improving lighting and ventilation
- Adding stylish but neutral tile flooring
Avoid moving plumbing or expanding the footprint unless absolutely necessary. Cosmetic updates deliver nearly 100% ROI, while full gut remodels drop to 50% to 60%.
Paint with Neutral Colors
Fresh paint is one of the most cost effective ways to increase the value of your home. If you are interested in a complete interior repaint with neutral colors including some warm whites, greiges and soft taupes, you can expect to spend $200 to $800 per room if you do it yourself or $1.50 to $3.50 per square foot for professional painting.
The anticipated value-added? The cost of this depends on the size and condition of your home and may run from $1,000 up to $3,000 or more.
Neutral colors have the power to do something remarkable—they give a person the ability to visualize themselves in that space. Favoring bold or individualized hues on a webpage can be a distraction and could even diminish offers. Make it light, bright, and appealing to all.
Boost Curb Appeal with Simple Landscaping
The first impression is created in mere seconds when you enter your driveway. The National Association of Realtors says that 99% of realtors say their homes sell faster when they have good curb appeal, and that enhancements can yield a return of approximately 238% on investment.
You do not need a full landscape overhaul. Simple, budget friendly steps include:
- Adding fresh mulch to garden beds ($50 to $150)
- Power washing the driveway, walkway, and siding ($50 to $200 DIY)
- Planting seasonal flowers near the entry ($30 to $80)
- Replacing a rusted or dated mailbox ($35 to $70)
- Updating house numbers with modern aluminum digits ($3 to $8 per digit)
- Keeping the lawn mowed and shrubs trimmed
These small touches can increase your sale price by up to 7%. That is a massive return for a minimal investment.
Make Your Home More Energy Efficient
Efficient use of energy is no longer an “extra” or a “nice to have” for today’s buyer; it’s a must have. Solar panels on rooftops and high efficiency heat pumps increase the value of a home by 1%-2%.
In particular, a heat pump retrofit can do up to 137% ROI. The longer-term savings on utility bills, and the reduced carbon footprint is understood by buyers. All the little upgrades, such as energy-efficient windows, better insulation, and smart thermostats are appealing.
If you are about to sell, make sure to highlight these features. Currently, only 8% of the listings advertise energy efficiency, making it a competitive advantage for your listing.
Deep Clean and Declutter
This tip is virtually free, but has such a great impact. The photographs look better and the home feels more welcoming when you’re there when it’s professionally cleaned, with steam-cleaned carpets, scrubbed grout and polished windows.
Decluttering will eliminate clutter and make rooms look larger. Store personal pictures, extra furniture and desk rummage. The last thing buyers want to see is space; they want to see stuff.
A tidy, neat house conveys that the residence has been properly maintained. That perception, alone, can stop lowball offers from occurring and reduce the time that you are on the market.
Complete Every Project You Start
This might be the most important tip of all. An unfinished project—a missing cabinet door, a half tiled bathroom, exposed wiring—signals neglect and can cost you more than no upgrade at all.
Buyers want move in ready homes. They do not want to inherit someone else’s half done renovation. Before you list, make sure every project is fully completed. If you cannot finish it, consider reversing it or hiring a professional to close it out.
What Not to Do
Just as important as knowing what to upgrade is knowing what to avoid. Here are the biggest money pits:
- Major kitchen gut renovations: 36% ROI on average
- Luxury bathroom overhauls: Often drop below 60% ROI
- Overly customized upgrades: Bold paint colors, unusual landscaping, or highly personal design choices can reduce your buyer pool
- Over improving beyond your neighborhood: If your home becomes the most expensive on the block, you will struggle to recoup your investment
Final Thoughts
Learning how to increase the value of your home does not require a degree in construction or a fortune in savings. It requires strategy. Start with the exterior items – garage doors, entry doors and curb appeal are the most lucrative. In the home, limit any major kitchen and bathroom renovations, repainting with neutral hues, and deep cleaning.
Mostly, do what you set out to do. A well done and completed house is always better than one that has not been finished, or deferred maintenance.
There is payoff in smart and strategic improvements in today’s market. Make wise investments and your home will rejuvenate you when it is time to sell.
