There is no magic answer that will allow you to quickly increase your home’s value, but there are some great ways that you can affordably get your home in a position for you to either market it more effectively when selling, or use the projected increase in value to refinance based on an increase to your equity.
While there are a host of things you can do to increase your home’s value (e.g. a bowling alley, 50m lap pool, rock climbing gym, drive-in cinema, or just a great trampoline), it’s best to break the topic down:
Top 5 ways you can increase your home’s value:
The go-to method for quickly increasing the value of your home is by renovating certain areas. A major renovation certainly isn’t a cheap method, which is why those flipping properties often choose to focus their renovations on the bathroom and kitchen.
Modular kitchens are an affordable way to renovate, often costing you as little as $10,000, but providing a return several times that outlay. Bathrooms on the other hand can be an easy place to over-capitalize, so it is important to be consistent. Together, these two renovations can be one of the most effective ways to dramatically increase the value of your home, as they are areas potential buyers pay close attention to.
When renovating your kitchen, ensure you consider the kitchen workflow as well as the demographic you are targeting. If your house is suited for young couples, they may not need a large kitchen island or even large fridge.
A revamp of your kitchen or bathroom should not exceed, as a general rule, 5 per cent of the value of your home if you wish to see a profit in the increased value.
2. Bring the light in
One of the most underrated, affordable and effective ways to increase the value of your home is to maximise the amount of natural light that floods the house and the way in which it does this.
Natural light fixtures, such as new windows, skylights and tubular skylights can be a great way to not only help market your home and attract a higher price for your home, but can be used to accentuate certain architectural aspects of your home, even in simple properties. Buyers place a lot of stock in the aspect of a home and the subsequent natural light this produces. If your house faces south, for instance, the addition of strategic skylights or more windows can transform a home and its subsequent value on the market.
A cheaper alternative or addition to managing the amount of light in your home is to reassess your artificial lighting options within the home. A smart use of ambient, utility and accent lighting within every room can dramatically help your ability to market your home, potentially attracting a higher number of interested buyers.
3. Incorporate off-grid options
Cost-of-living continues to be a cause for concern for buyers, which is why it can be a great opportunity for homeowners looking to sell or refinance to incorporate sustainable practices into the production of energy within their home.
This can range from smaller additions (solar panels) to an all-encompassing investment in green energy production (rainwater tanks, onsite battery storage, compost toilets, grey water recycling units, and most recently the use of see-through solar window technology).
Investment in these sorts of technologies can require a significant amount of capital, which is why you must consider what technologies find the best balance between affordability and marketability when it comes to finding extra value in your home.
4. Get your garden up to scratch
Again, who is your market? Defining this first will help you design your landscaping affordably and effectively.
For marketing purposes, the front of your house is almost more important than the back. You ideally want to think of long-term value growth when it comes to your landscaping, so consider what sort of trees you will plant long before you expect to capitalise on the increased value they can provide. Eucalypts are some of the quickest growing trees, and play a feature role in a front garden, requiring you to do less work in other areas.
If your target demographic are families (you have a three/four bedroom home in a suburban area), then you should consider using law, which is significantly affordable) in your backyard to promote the lifestyle aspect of your garden. A smaller home may benefit from a low-maintenance garden, which includes natives and succulents.
A study by the International Islamic University Malaysia in 2014 found that the sophistication of a landscaping design, rather than the variety of plant types or size of plant types, had the most potential impact on house values. This is why landscaping is a longterm value-adding project, and can benefit significantly from the services of a professional landscape designer/architect.
5. Fix that creaky step
Repairs are fundamental, affordable and usually achievable in increasing the value of your home. Upgrading windows, flooring, internal and external paintwork, as well as fixing broken fixtures and cracks in both the home and its exterior will all contribute to increasing your home’s value. Make a list and keep your receipts for all repairs (as well as the above measures in this article), so that you can include these in an appraisal made of your home. This appraisal is key to refinancing based on increased equity or finding a higher price for your home on the market.