Renovate Your Home With These 4 Ideas & You Will Increase Its Market Value
Most homes (nearly 65%) are older than 25 years. If your home is one of them, it would definitely be a good idea to consider some repairs and renovations. You will be surprised how just a few minor corrections will change your home's value and boost your equity! However, not all improvements are the same, so you should choose the ones that will give you the best value for the invested money.
Here are some ideas that you should consider even if you are not planning to sell your home soon:
1) Think About Who Your Target Buyer Is (Or Will Be)
Not all homes are suitable for all types of buyers. Is your home suitable for a family with kids or for a young couple? Consider things like your neighborhood and floor plan. Once you decide who your target buyer is, improve your home according to their needs and appeal.
2) Start Thinking Like an Appraiser
Before selling a property, a third-party appraiser will come to determine your home's fair market value. When determining the value of the property, an appraiser will consider the quality and condition of your house's construction based on specific ratings. You can boost your home's value with some adjustments that will give your property a higher condition or quality rating. One of the biggest reasons for a lower condition rating is deferred maintenance, so you may think about painting the walls or refinishing the floors. Even these simple renovations might have a big impact on your home's market value. On the other hand, it might be slightly harder to influence quality ratings. You can try with some more quality materials like marble, slate, and even brick, or you can put crown molding to the walls and to the top of a window and door frames.
3) Know What Repairs Are Your Priority
Not all repairs will have the same impact on your home's market value. Although you may not be enthusiastic about spending money on routine maintenance, it is very important if you want to avoid higher costs later. When investing more money, consider changes that will increase the square footage of your home or make it more attractive to different types of buyers. However, do not despair if you currently do not have much money to invest - even small changes count and will attract more potential buyers.
4) Think About Curb Appeal of Your Property
Most potential buyers will take curb appeal into consideration when choosing their new home, so you should consider it, too. Curb appeal can be increased with several different remodeling projects, such as replacing garage door, adding wooden decks and stone sliding, or pruning unwieldy trees and bushes.
Consider a Cash-out Refinance
If you do not have sufficient funds for all planned investments in your home, you should think about cash-out refinance. With a cash-out refinance you will basically refinance your current mortgage for more than what you owe and keep the difference in cash. Cash-out refinances are often used for renovations, since they typically come with lower interest rates than personal loans, and those planned renovations will boost your equity in the long run.