When it comes to extending or improving your home, most people will do so with the aim of creating a functional and usable space that brings the most significant benefit to the whole family. However, many homeowners will also consider whether their improvements will increase the value of their property. After all, if you’re going to invest money into your home, then the idea that you’ll get it back and potentially even make a profit when you sell up is a pretty attractive one!
With that in mind, we thought we’d take a look at some practical improvements that you can make to your home that will also add value to your property.
Potential value increase – up to 30%
If you have an unused and unloved basement, then you’re sitting on a goldmine. Transforming an existing basement into a living space is just about the surest way to add value to your home. As long as the cost to develop the space is less than the price per square foot in the area, then you’re almost guaranteed not only to get your money back but also to make a profit.
As well as the financial benefits, converting a basement should, in theory, be one of the easiest home improvements you can make, as you shouldn’t require planning permission. That reduces the time and cost of the work considerably. Common basement conversions include everything from creating an additional bedroom to building underground home movie theatres, games rooms, gyms, recording studios, and even bars.
2. Revamp your kitchen
Potential value increase – up to 10%
Not all of the ways of increasing the value of your home require extensive building work or high costs. It is possible to add a good chunk of value to your home by spending a relatively small amount of money. For most homebuyers, the kitchen is the most important room in the house, so you can really boost the appeal of your property by replacing a tired and outdated kitchen with a modern, practical, and attractive alternative.
While buying a new kitchen can cost as little as $6,000, the average cost tends to be around $12,000-$16,000, but the good news is that you should see a return on your investment. Fitting a new kitchen can add between four and 10% to the value of your home.
To get the biggest benefit, you must make sure that the amount you spend is proportionate to the value of your home. For example, if you spend $25,000 on a luxurious new kitchen for a $200,000 house, you may not see the full investment reflected in the selling price. However, a new $10,000 kitchen on a $200,000 home will be a real selling point and could lead to a tidy profit.
3. Install an in-ground swimming pool
Potential value increase – up to 15%
There’s much debate among real estate professionals about whether installing a swimming pool in your home adds value to your property. The reality is that it depends on where you live. If you live in a cold part of the US that’s covered by snow for six months of the year, swimming pools are, understandably, not particularly desirable. However, if you live in an extremely hot climate, pools can make a big difference in your sale price.
For example, in California, a swimming pool can increase the value of a median-priced home by around $95,000, making a $30,000 pool a very shrewd investment. Whereas, in the Midwest, the addition of a swimming pool is likely to add between nothing and $40,000 to the value of your home.
If you do choose to install a swimming pool, you should opt for a salt pool. Salt pools help to keep the maintenance costs down, making them more attractive to homebuyers. There are also no chemical smells or health concerns that you can get with traditional chlorine pools.
4. Apply for planning permission
If you haven’t got the time, inclination, or budget to make improvements to your home, then one very cost-effective step you can take is to apply for and obtain planning permission. That will help elevate your home and attract buyers with bigger budgets looking for a little more space than your home currently offers.
For example, if you have planning permission for a single or double floor extension, that could allow buyers to add a new bedroom and bathroom upstairs and increase their living space dramatically downstairs. It’s also very appealing because it gives them the freedom to create a space that works specifically for them.
5. Make a good first impression
You might think that purely cosmetic changes won’t do much for your property’s value, but first impressions count. Buying a new front door, giving your home a new coat of paint, and tidying up tired old masonry with fresh render can make a huge difference to your home’s appeal.
As well as making the front of your home as inviting as you can, a few aesthetic improvements to the back garden can also add value. Cutting the grass, sweeping up the leaves, and doing some planting can help. A tidy lawn will always look larger than a messy one, so turn your garden into a selling point by creating a simple, stylish, and welcoming space.
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