Article summary
Home improvements are an incredible tool to maintain and even improve your home’s value. However, not all improvements were created equal. We’ve outlined the most beneficial projects as well as a few that aren’t as beneficial for your home’s value. No matter which tasks you plan to take on this year, remember to find a balance between the home you want for your family and the home you’ll be presenting to future buyers someday.
Consider: Kitchen and bathroom renovations
A recent HGTV article shared that “ kitchen and bathroom remodels continue to be two of the best investments you can make in your house.” If you’re looking to maintain or boost your home’s value, go for somewhat neutral color schemes and stone countertops. You might even consider adding a second bathroom, especially if you’re in a home with one bathroom for three or more bedrooms.
Skip: Solar panels
The general idea behind solar panels sounds intriguing: an investment that can offset your electricity bills and help the environment. However, you’ll only reap the benefits of solar panels if several factors apply to you, including a high energy bill, plans to stay in your home long-term, available tax credits for your state, and an ability to pay the upfront costs. If your current situation doesn’t fit these characteristics, solar panels are one home improvement you probably want to skip.
Skip: Garage conversions
While extra living space is a valuable asset in any home, a garage conversion isn’t usually the most ideal way to acquire that. A survey from Realtor.com found that 27% of home buyers rated a garage as one of the most important features in a house. Done correctly, a conversion often requires extensive time and money, and absolutely requires securing permits for the construction. A well done conversion offers an ROI of 80%, but when it’s time to sell, some buyers will actually request included funds to revert the space back into a garage.
Consider: A home office
A 2021 Gallup survey found that nearly half of all Americans work from home part or all of the time. A home office doesn’t require sacrificing a bedroom or playroom. In fact, a recent trend has homeowners converting a large closet into a workspace known as a ‘cloffice.’ If anyone in your home is a remote worker, a home office can add value to your lifestyle and your home’s worth.
Consider: Appliance upgrades
When considering appliance upgrades, research where your home falls within the local housing market. Adding top-of-the-line appliances to an average-priced home isn’t a wise investment. However, replacing dated or inefficient appliances is a reliable way to maintain or increase your home’s value.
Refrigerators often offer the best ROI. Consider replacing an above-the-range microwave with a more modern option and replacing your dishwasher with one that cleans quickly and quietly. Of course, remember that Energy Star appliances will also improve your home’s energy consumption.
Consider: An energy audit
While the average professional energy audit costs a few hundred dollars, it can save you thousands of dollars over time, potentially slashing your energy bill in half or even thirds. An audit will identify improvements and repairs you can make to lessen your home’s energy consumption. For every $1 decrease in annual energy costs, a home’s market value increases by $20, according to the Residential Energy Services Network. After the audit, be sure to follow the provided recommendations.
Skip: A swimming pool
If you live in an especially hot state such as Florida, Arizona, or even California, this advice definitely doesn’t apply to you. However, in many other places, a pool can actually have a negative impact on your home’s value when it’s time to sell. Some families will view a pool as a safety hazard or burdensome home feature. Install a pool if it’s something you desire for your family’s lifestyle, but don’t expect it to improve your home’s value.
Skip: Leaving your home unprotected
Homeowner’s insurance is a no-brainer. If you have any sort of mortgage, your lender requires it, and homeowners without a mortgage generally recognize the importance of insuring their home in case of catastrophe. There are some catastrophes that won’t cause physical damage to your home but can still lead to devastating loss. Economic downturns can cause home values to drop, accompanied by job loss and a rising cost of living in a community. For about the cost of a homeowner’s insurance policy, REZITRADE’s Home Price Protection can help you protect your home’s value during those times by offering a monthly payout when home prices drop past a certain percentage.
Takeaways
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Real estate prices are cyclical. To preserve your home’s value, it’s important to keep it maintained and updated, which can also provide additional comfort and utility for your family.
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DO consider kitchen and bathroom renovations, adding a home office, getting an energy audit, and upgrading your appliances.
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Think about skipping the addition of a pool or solar panels as well as a garage conversion.
