One of the popular ways to build long-term wealth is to own your own home. While simply owning a home and paying down a mortgage over time will lead a significant amount of wealth creation, those that are looking to maximize the amount of equity that they could ultimately have in their homes should look for ways to improve their home. Those that are looking for home improvement projects to consider, here are six specific home improvements that could add the most amount of value to your home when you ultimately try to sell your home.
Before you make any of these improvements, you need to consider how your area will handle the upgrades. There are some instances where you can price yourself right out of the neighborhood, making it difficult to sell based on the area around you. I just want to give that warning before jumping into the improvements. Each individual market will dictate which improvements will give you the best resale value.
The first improvement that you should consider when looking to improve the value of your home would be to upgrade your kitchen. Studies have shown that no improvement adds more value and return on investment then upgrading your kitchen. By installing new cabinets, countertops, appliances, and flooring, you could turn an older kitchen into a space that is highly sought after by buyers, which will make your home more valuable and easier to sell.
Square Footage Addition
The second improvement that you should consider to add value to your home would be to add square footage to your home. Adding square footage will directly add value to your home. When looking to add square footage, it would be a good idea to add space to both common living areas and to add new bedrooms, both of which would help you to attract more buyers. Adding new square footage to your home can be one of the hardest and most expensive, but if done correctly, it can really pay off.
The third improvement to consider would be a bathroom remodel. Next to improving your kitchen, renovating bathrooms provides the second best return on investment to homeowners. This is particularly true when you invest in a luxury master bathroom vanity, or other accessories to accentuate your new bath.
Open Up Floor Plan
The fourth way that you could add value to your home would be to try to open up the floor plan of your home. Beyond having more square footage, homebuyers today would prefer to have more large rooms as opposed to just a few small rooms. By knocking down a few unnecessary walls, you could greatly enhance the open feel of your home, which would add value and attract more buyers.
While building an addition will add to the square footage of your home, finishing the basement of your home could add to the functional square footage. Finishing an unimproved basement will be able to give you a significant amount of extra space, which could be used to add another living room, add a new bedroom and bathroom, or even create a home office or workshop.
Outdoor Living Space
The sixth improvement that you could make to your home, which would add the most amount of value, would be to improve an outdoor living space. A lot of time renovators are focused on home rebuilding, but often forget about the yard outside. Having a nice outdoor living space will increase the usable square footage and give someone a great place to entertain, particularly during the warm weather months. By installing a nice patio, deck, or screened in porch, you could add some additional value to your home.
I am in the process of selling my home. We considered some of these improvements on our home a few years ago. After I sat down and looked at the area around me, I realized that I wouldn’t have the return on investment that I needed. As I indicated, it all depends on your area. Instead of adding anything new, I have just worked hard to make sure my house looks the best it can. Just providing a very clean and neat home can really make a difference.
Would you consider any of these improvements or have you done any?