Updated: Feb 2, 2021
The #1 determining factor for a home's value is location, Location, LOCATION! But if you already own a home, there isn't much you can do to change that. So here are 5 things you can do to increase the value of your home through home renovations:
1) Increase the Size
The most common way homes are valued is based on price per square foot. Therefore, adding square footage to your home will dramatically increase its value. This can be done through additions onto your home, finishing out an attic or basement, or closing in a garage or porch. Oftentimes this means gaining a bedroom or bathroom which is a huge value increase to your home!
2) Update Kitchens & Baths
A refreshed kitchen or bathroom won't add square footage to your home, but it will definitely increase the cost per square foot your home is valued at. When it comes to renovations, investing money in your kitchen or bath will give you the best bang for your buck hands down!
3) Improve Layout
A lot of older homes have closed off living rooms, dining rooms, and kitchens but today most home buyers are desiring open concept house layouts. This can usually be accomplished through removing walls between rooms or putting in a larger cased opening. But before you pull out the sledge hammer and start knocking down walls, consult a contractor, or structural engineer. The wall could be load bearing, or have plumbing or electrical lines running through it.
4) Curb Appeal
Its amazing what a little landscaping can do to a home's resell value! You may have cut back or remove dead or overgrown trees/bushes and plant some new grass and flowers, but it makes the difference between a house and a home. And a power wash and fresh coat of paint will make a tired exterior look brand new!
5) Roof & Windows
When a home appraiser comes to valuate your home, the first question they will ask is, "How old is your roof?" And when house flippers take on a project, they almost always put on a new roof and replace the windows. Now Im not saying you need to replace a roof that still has a lot of life left in it, but if you are looking to sell your home at top dollar, a new roof and windows will almost certainly pay for itself at closing. Not only does it boost the curb appeal, it gives the buyer the warm fuzzies that they will not have to worry about leaks for a long time!