How To Increase The Value Of Your Home
Owning a home is one of the biggest financial decisions you will make. People decide to purchase a home for many different reasons. Some of the reasons include living in yourself, as a vacation home or for investment reasons. Whatever be the reason, all homeowners expect their properties to appreciate over time and that it will be worth more than what you paid for. While this may be true, the value of your home in the future is determined by some factors which we will go through in this article. Some of these factors are out of your control while others are perfectly within your control that you can alter to increase the value of your home. Let’s first go through the things you cannot control then we will move on to the changes you can make to increase the value of your home.
4 Uncontrollable Factors That Determine A Home’s Worth
Location characteristics are undoubtedly one of the most significant determinants of the value of a property. The location of a residential property directly determines its value. Properties located in estates and gated communities like the Devtraco Courts tend to appreciate faster than those in non-gated communities. This is also true for properties located in prime areas of the country. This is because each location presents different variable values such as the calibre of people that live there, socio-economic level, accessibility, green areas, traffic level among others.
Infrastructure development is one of the most important factors in determining property value. The presence of roads, medical facilities, entertainment hubs, airports, transportation networks, shopping centres, educational institutions, business centres, retail markets, hotels and restaurants and other facilities in the area helps in increasing property value. When purchasing a home whether as owner occupier or investor, connectivity is one of the most critical requirements. It is therefore not surprising that properties that are well connected to these facilities have a higher value than those that are not.
3. Market Popularity
As it is now, demand for real estate in a particular vicinity is inversely proportional to supply. Therefore as the availability of homes in an area decreases, the value of homes there increases because of scarcity. The popularity of a particular location in terms of the number of people who want to live there also increases the value of a property. There is also popularity with regards to the type of property unit people want. It is the desire for properties that gives value. Property has no value if it is not scarce, and has no effective demand.
4. Population growth
Changes in the population are critical drivers for housing demand. Population growth and migration drive the demand for housing. When there is high demand, prices and property value goes up. This is very important to note that growing employment and infrastructure in certain areas are primary drivers for population growth and subsequently, property market growth in that area.
Now that we have examined some uncontrollable factors that affect the value of your home, let’s dive into some things you can do on your own to help raise the value of your home.
10 Ways To Increase The Value Of Your Home
1. Decor and interior design
Design your home to look and feel unique and achieve that beauty and ambience with your home. With good interior decoration, you can make a standard home look extraordinary like a luxury home. If you are selling your home, it is very important for potential buyers to envision your home as a place they can live. Choice of painting, floor tiles, drawings, light arrangements, room colours, curtains, living room arrangements and other room accessories can make a big difference to the look and feel of your home. You can apply the basic principles of interior decoration or hire the services of a professional to design your homes’ interior and add value to your home.
2. Regular maintenance
Having a routine task to keep your home in a good condition is necessary. Think of your home as a car, it relies on all the mechanical parts to be in good condition for it to function properly. Things to look at include how old is your electrical panel? Is your water heater in good condition? How is your roof looking? How secured is the weather-stripped around your window? How secured are your doors? Is your AC well tuned up? How scuffed are your hardwood floors?
Homebuyers worry a lot about buying homes that will need major maintenance therefore you might want to consider replacing major components before putting your home up for sale. Neglecting to maintain your home will put a dent in your property value. If a home buyer conducts an inspection and the report shows major outdated components and upgrades, there is a high possibility the buyer will beat down the price of the property to make up for the upgrade to be made. If the upgrade seems so daunting, the buyer may walk out of the deal altogether. Maintaining your home and keeping it up to date puts you in a strong negotiation position.
3. Deep Clean And Declutter
Cleaning and decluttering your home is the least expensive way to make your home feel alive and bigger. While these are inexpensive, they require a lot of work. Before showing your home for sale, it is recommended to have it deep cleaned beyond your standard vacuum routine. First impressions matter and buyers appreciate a clean home. When cleaning, you may overlook certain things because they are not in your field of awareness like fingerprints on a wardrobe. It is therefore recommended to hire professional cleaners to perform deep cleaning as they are more thorough and less likely to overlook something.
As with cleaning, it is also recommended to declutter your home prior to listing. Go through cabinets and closets and take out everything. Check all the drawers and corners and take out everything that is not needed in the home sale. As much as possible keep the place neutral by removing any personal belongings such as family photos and personalized decorations. This will help potential buyers to imagine themselves in the space.
Deep cleaning and decluttering can help add more value to your home.
As simple as it sounds, lighting makes a home look more desirable and spacious. Consider adding extra lighting to your home to improve your home’s curb appeal. The type of lighting you add can make a difference when selling your home. For example, using energy-efficient lighting systems are a generally popular option among home buyers. Replace dim bulbs with bright and warm-spectrum ones. It might be difficult to determine the exact value lighting can add to your home, but it is an option that shouldn’t be neglected as it adds beauty to the home.
Coating your home with fresh paint can refresh the look of your home while boosting value. It is up to you to consider whether to paint the whole house or focus on a couple of rooms. Start by repainting any rooms with cracked, chipped or peeling paint. If you have any rooms with odd colour schemes, consider repainting that too. Take, for instance, if your daughter preferred painting her room with pink colour, you might want to repaint with neutral colours before you put your home up for sale. You could add accents to walls to make special features pop out. When it comes to painting, there are many options to go with, but try to keep it as simple and neutral as possible.
6. Eco-friendly homes
Eco friendly and energy conservation features can have a massive impact on a home’s value. Eco features that add value to a home are increasingly becoming popular and buyers are starting to see the benefits of eco-friendly homes, from low maintenance to a more sustainable and future way of living.
When making the decision to switch to eco-friendly homes, you can consider upgrades like solar panel installation, energy-efficient heating systems, energy-efficient electrics like refrigerators, and using LEDs.
Investing in an eco-friendly home now means you are one step ahead in the future.
7. Pay attention to smells
Before a showing, make sure unpleasant smells such as bathroom smells and musty odours are cleared from your home. In an effort to eliminate unpleasant smells, do not mask with other smells. For instance, you may want to use incense to give the room a pleasant smell because you love it but the prospective buyer may not be keen on incense. You may end up irritating the prospect more. As a simple rule of thumb, try to keep a neutral scent just as you would with a neutral colour for your home. Take advantage of the fresh air by opening windows and doors to allow air in and out of the room.
8. Update bathroom
Buyers usually zero in on some places in the home and the bathroom is on that list. You can present your existing bathroom in splendour by adding a few inexpensive touches. For example, you can replace your standard showerhead with a more eye-catching option, trade your faucet with a stylish one, new flooring, upgrade the countertop with marble or granite. Sprucing up your bathroom in this way could help attract buyers and increase the value of the home. If the bathroom is already modern, there is no need for these upgrades.
9. Update kitchen
As with the bathroom, if the kitchen is outdated, it can greatly affect how much you garner from a sale. You don’t necessarily have to make huge expensive changes to the kitchen. Small but modern upgrades such as replacing taps and handles, refacing and installing modern hardware on cabinets, refacing countertops, installing a new sink and repainting are simple ways to elevate the kitchen.
10. Smart home
You can enhance the appeal of a home by making it smarter and more efficient. With a few safe, smart home installations such as thermostats, fire detectors, security cameras, carbon monoxide detectors, door locks and lighting, you can enhance the sophistication of a home. In a 2018 survey by Coldwell Banker, safety-enhancing gadgets were the number one list of smart technologies home buyers want in their new homes. Smart home technologies enable you to control your home with ease, making the home safe and extra comfortable for you and your family. For example, you can use smart home technologies to automatically unlock the door when an authorized person approaches, monitor your home’s temperature and security cameras on your phone, automatically lighting when you are present and many others. These smart home upgrades are relatively inexpensive and you can basically install them yourself.
In conclusion, updating your home to increase its value isn’t a difficult thing to do. It’s not all about the big upgrades, but small touches go a long way to increase the value of the property. Regular preventive maintenance can save you lot’s of money so don’t skip it. There are several basic things that if you skip, no upgrade will matter. For example, clogged gutters, roof shingles and rooms with odour smell. Fix these, have a little upgrade to the home and you are on your way to commanding a higher value for your home.