Harvard researchers project that the total spending for Americans on their home remodeling projects in the second half of 2022 can be as much as $430 billion.
There are primarily two reasons that Americans spend so much on home updates. One is that people spend so much time at home, that it only makes sense that they want to improve their living space.
Americans want to do more than live at home, they want to enjoy it too.
Second, and very important, is that Americans often seek to increase their home value.
When Americans buy a car or invest money into their vehicle, the value of the vehicle will depreciate, anyway. Homes are the exact opposite. It is an investment that will appreciate.
If you are looking to enjoy your living space and add value to your home, there are a few key projects that make for an excellent investment. Keep reading to find out what they are, and how they can help you.
What Is a "Home Value?"
It will have a different meaning to an appraiser, tax assessor, and homeowner. Usually, the home value refers to how much your home will probably sell for. This is also called the current market value.
Generally, home buyers, home sellers, and mortgage lenders rely on the professional expertise of an appraiser to give an accurate market value.
What Is a Home Appraisal?
It is an unbiased opinion by a professional of the home value. You will almost always use a home appraisal in the process of a transaction for purchase and sale. Commonly, a refinance transaction will also use an appraisal.
When there is a purchase-and-sale home transaction, the appraisal is necessary for the home’s contract price. The contract must have an appropriate price given the condition of the home, features, and location. For a refinance, it is to make sure that the mortgage lender is not giving more money to the buyer than the home is worth.
There are a few ways that you can increase the value of your home. The following are things that homeowners will commonly do to achieve a better home value.
1. Curb Appeal: Painting the Exterior
The first improvement that you want to make is one that can add home value without costing you big to do it. It makes a big impact in a few ways, beginning with boosting the visual marketing appeal.
Marketing is emotional. It tugs at a person’s dreams and desires. Making a captivating visual appearance of the color of your home is a way to pull someone into their “American dream.”
Next, it creates the perception that the home has value. Not only will more prospective buyers come to view your home, but it is also a way to tell homebuyers you care about the property.
It is a big concern for the home buyer, whether the seller properly looked after the home. It means that there will probably be fewer critical issues or “hidden” problems with a nice coat of exterior paint.
Even if you are not selling a house immediately, painting the exterior will protect your outside walls. It is your home's primary defense from outside elements. Exterior paint protects the surface of your home from:
- Moisture infiltration
These are to name a few. A fresh coat of exterior paint protects. Not only will it make your siding look better, but it will also extend the life of the siding.
HomeLight recently revealed a survey that says a typical ROI is 51% from repainting your home’s exterior. For example, if you were to spend $6,000 on painting the exterior, you can predict your home value will increase by $12,244.
2. Painting the Interior
It takes time and money to do this, but you will get a significant return on your investment. Although it is largely based on the colors you choose. The top four colors to consider are:
- Light blue
White makes rooms feel bigger. Therefore, the color choice of white is good for bathrooms, bedrooms, kitchens, and living rooms.
Cream freshens up a room, which is why it is a popular choice for bedrooms, kitchens, and living rooms.
A recent Zillow survey reveals that light blue is popular for bathrooms. In addition to its popularity, it can also increase your home value by $5,000.
Greige is a superb choice for someone who cannot decide between gray and beige. People like the color greige for bedrooms, exteriors, and living rooms.
Remember, the color choice is very subjective, so a good rule to consider is that light, neutral colors are the way to go.
Painting the interior can attract buyers and add to your home value if you make the right choice in colors.
3. Kitchen Cabinet Upgrade
A staple of the American home (and the American dream), kitchens should be beautiful and functional. That is why remodeling a kitchen can be so exciting for homeowners. You are creating something that will fulfill your needs and desires.
It is possible to overspend on a kitchen remodel. Especially if you are doing this to add value to your home, you must think practically about your budget.
Of the amount that you are comfortable spending, commit most of it to the things you do not want to replace often, such as cabinetry. The look and style will attract a homebuyer’s attention, but they also want sufficient space to store foods, plates, cups, cooking ware, etc.
Remodeling magazine recently released a Cost versus Value report. For a minor (mid-range) kitchen remodel, the average cost is $23,452, and the average resale value reports to be $18,206. This means the homeowner could recoup 77.6% of their expenses.
Cabinet refinishing versus replacing is an economical move that will give you a fresh look and feel while adding value and helping your budget with up to a 50% savings.
While updating your kitchen shortly before you are going to sell your home anyway, may seem like a trivial project, it is not. It will help the sale price.
4. Replace Carpet and Hardwood Floors
Homebuyers will come into a deal with their own ideas on things they may want to change. However, they would rather buy something that will need minimal improvements. This means that if the carpeting or hardwood looks damaged or in poor condition, they will not be pleased knowing that is work and expense for them to do.
A homebuyer wants the floor to look both clean and new.
Particularly, people love hardwood floors. If you are wondering what the best choice for flooring is, you must consider upgrading to hardwood floors.
While the percentage of ROI from updating your hardwood floors may vary, there are many experts who agree that it can increase a home value between 3% and 5%.
5. Built-in Bookshelves
It is a permanent addition to your home that not only adds aesthetics, but it is also practical for storage. Homebuyers like to see that they can easily store their things without feeling cramped. Bookshelves are a way to open a room space.
A certified residential appraiser says that when you make a built-in bookshelf with expert craftsmanship and high-quality materials, it will increase the home value.
6. Tile the Bathroom Shower
This can be a bigger selling point for your home than you may realize. Tile surfaces attract homebuyers when they look sleek and sparkle. Cleaning should be simple, too, especially with new bathroom tiles.
Remodeling magazine reveals you can recover as much as 64% of the investment you make in your bathroom remodeling upon selling your home. As an example, fully remodeling your bathroom at a mid-range cost can be $21,000 on average. This means you can add value to your home by as much as $14,000.
7. Upgrade to LVP Flooring
LVP is not true hardwood flooring, but homebuyers still appreciate the aesthetic appeal they give. Plus, they love their durability.
In short, LVP flooring will raise the value of your home.
The pleasant part about this type of flooring is that a professional can easily install them over existing flooring. The only requirements are that the floor you are covering is completely flat, clean of debris, and in good repair.
Call Ulta Home Improvements for Your Home Updates
We have the skills and accumulated experience to get your home updates done right.
Ulta Home Improvements has many 5-star Google reviews and is one of Best Picks Magazine's top Boston area contractors. Our expert specialists will give you the best advice and help you choose the best materials to work with, no matter your situation.
You no longer need to feel unsure or overwhelmed about your home updates when you work with Ulta Home Improvements. Contact us now to discuss a home remodel plan that adds home value.