If you plan to sell your home or to improve your home’s equity, it is always a good idea to increase its value by $100K. You can do this with home improvement and renovations that increase your return on investment.
However, that’s not the case with everyone, as some may find that even after investing in upgrades, the preference and expectations of the local market don’t add the anticipated value. Hence, it is advised to seek help from a professional real estate agent. Also, this blog discusses some tips that answer your question - “How to increase home value by $100K?”
5 Smart Ways to Increase Home Value by $100k
Just upgrading is not enough; to ensure you get a proper return on your investment, you need to upgrade smartly. So, here are some ways you can increase your home value by $100K -
Renovate or Upgrade Your Kitchen
Investing in kitchen upgradation or renovation is always considered a good idea. Experts believe that you can spend 6-10% of your home’s total value, and get fair returns (if you’re using materials that look good). Whether you do just a facelift or do a major kitchen upgrade, you’ll get a return of about 67% on your investment.
However, you must take care of certain things, such as choosing the right quality and materials. For example, you can choose all-wood cabinets, stainless steel appliances (if feasible, industrial-grade would be better), natural wood or stone floors, and countertops, for a complete makeover. On the other hand, if your kitchen needs only a little makeover, consider replacing the cabinet hardware or giving the walls and existing cabinets a fresh splash of paint.
| Notes | Adding a luxury item, such as the $9,500 La Cornue range, may not recoup the investment. So, when renovating the kitchen, keep in mind the emotional return on the investment as well. |
Replace Your Home Systems
When you’re selling your property, buyers assume that the HVAC, plumbing, and electrical systems are in good working condition. Having your HVAC replaced can get you an ROI of 71%. Also, upgrading the existing electrical panel to a 100-200 amp panel may cost you around $800-$3000. While it’s not a very pleasing expenditure, it is a worthwhile investment that can increase the value of your home.
You can also consider insulating your attic, as it can yield an average return of 117%. Additionally, insulating your attic will keep your home cool in summer and warm in winter.
Enhance Your Outdoor Space
The large corner lot is a huge part of the home value, and with a few updates and new additions, you can increase the curb appeal and the home value. You can consider adding a few colorful plants and creating a seating space with a fire pit in the front yard.
While you are at it, you can also remove the invasive ferns and branches from the lawn. You can also extend the deck to have more lounging and dining space, which will increase the value of your home.
Finish Your Basement
Most people tend to overlook the basement without realizing that it has immense potential to add value to your home. Here’s why finished basements add value to your home -
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You’ll have extra living space, and buyers appreciate having more room.
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You can customize the space into an additional bathroom, bedroom, or living room.
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With a completed basement, buyers see it as a ready-to-move living area, not as a renovation project.
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Convert the place into an accessory dwelling, as it opens up rental income opportunities.
Though an unfinished basement does not count as “livable square footage,” in MLS listings, they add to the value of your home. Finishing a basement can offer a return of 70-75% (approximately) on investment.
For example, if you invest $15,000 in a basement renovation, you can expect to recover the ROI of around $10,500 - $11,250 when you sell your home.
Refresh Your Bathroom
If you update the bathroom in a smart way, this can add a good amount of value to your home. Here are some of the things you can do -
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Re-caulk the tubs and sinks.
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Add storage or new lighting.
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Install a new mirror or a vanity.
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Replace the outdated fixtures with sleek, modern ones.
A clean and modern bathroom adds a luxurious touch to your home, which attracts buyers with higher value.
What Factors Affect Your Home’s Value?
Here are some key factors that might affect the value of your home -
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The location of the home and proximity to the desired location influence the home value.
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The size of the property (square footage and lot size) matters. A large space will have a high resale value.
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The age of the home and its current condition also affect its value. If the home needs fewer repairs or replacements, buyers will be willing to pay more.
To increase home value by $100K, as a homeowner, you should focus mainly on the replacement of the old home system, updating your kitchen, bathroom, floors, garages, etc. But ensure to renovate in such a way that it may suit the local buyers.
