4 Ways to Increase the Value of Your House in the First Year

Buying or improving a home involves costs and financial risk. This article discusses practical improvements to consider; it does not establish that ownership or renovation will produce a profit.

If you expect to move, compare the work you need now with your likely time in the home and the costs of a future sale.

A sale price depends on the property and market. Plan improvements and any moving expenses without assuming the sale will recover every cost or produce a profit.

Even if you do not plan to move, consider improvements for how you use the house. Any resale effect is separate and depends on the scope, property, buyers and market.

Related: Renovate Outdoors to Make Your Home’s Worth Equally Rise

Expert Recommended Ways to Increase the House Value

1. Remodeling the Kitchen

Kitchen improvements can address storage, lighting and everyday usability. Their resale return is uncertain and depends on the property, scope and local market; choose changes for practical needs rather than assuming the investment will be recovered. Related: kitchen remodeling.

• increasing the storage space,
• upgrading the appliances,
• changing the lighting,
• If possible, adding a kitchen island.

Set the kitchen scope from its condition, your priorities and itemized quotes. A particular budget tier does not establish a resale return.

• Avoid adding technology that might be a new fad as technology tends to get outdated and sometimes even tacky over a very short period of time.
• Avoid adding over-the-top features like chandeliers or fancy plumbing.
• Make sure that you don’t end up gourmeting up your kitchen to the extent that it feels out of place with respect to the rest of your house. It can be a turn off for most potential homebuyers.

Related: Kitchen Remodeling Costs

2. Bathroom Renovations/Addition

Bathroom renovations can address layout, storage and maintenance needs. Discuss sale-related priorities with a local real-estate professional; a renovation does not guarantee buyer interest or an increase in value.

Here are some additional tips for bathroom remodeling:

• Provide your bathroom a theme.  It can be light and breezy or classically suave.  Make sure all the accessories are in harmony with each other design-wise.
• Add storage spaces.  People tend to ignore utility for style, which is not necessary at all.  There are plenty of smart storage solutions out there for small to large bathrooms which can appeal to buyers but do not guarantee a higher asking price.
• Revamp the plumbing and the electrical.  No matter how beautiful your bathroom is on the outside, a leaky pipe will certainly override any goodwill generated through design.

If you are considering an additional bathroom, have a designer or contractor review the proposed space, fixture clearances, utilities and the applicable local requirements. A general area figure does not establish that a bathroom can be permitted in a closet or under stairs.

Related: Kitchen and Bath Design Ideas

3. Energy Efficient Solutions

Compare the actual performance of the products you are considering. ENERGY STAR provides information about certified product categories; a home energy assessment can help identify priorities for the particular house.

There are plenty of ways you can achieve this.

• Compare the proposed windows with the house’s existing condition, installation needs and product performance. Operating-cost changes and any resale effect depend on the actual house, use and market.
• Solar generation depends on the site, equipment and electricity use. Before planning a system, ask an installer and your utility about interconnection, storage, tariffs and eligibility for any current incentive. Do not assume that surplus generation will produce a profit.
• Make sure the appliances in your home are energy star rated, and also make sure that you advertise the fact during an open house.
• A home energy assessment can help identify air leakage and insulation needs. Have a qualified professional assess the house before deciding what work is appropriate.

An efficiency upgrade may change operating costs, but savings and any resale effect depend on the house, equipment, usage and market. Compare the project’s cost with a realistic estimate for your own circumstances.

Check any incentive directly with its administering agency before including it in a budget. Availability and eligibility can change.

4. Miscellaneous Upgrades

Smaller maintenance and presentation projects are also worth considering. Choose work for the property’s condition and your priorities; no individual improvement guarantees an easier sale.

• Keep the paint updated. A dull and out of favor paint job is an eyesore that will never go unnoticed.
• Increase storage space across your house. Cubbies for living room, closets in the bedroom, cabinets in kitchen, etc.
• Make sure there are no leaks in the roof, especially if you live in a place that gets plenty of rainfall.
• Check for moisture problems and damaged materials before selecting cosmetic improvements. The EPA’s mold guidance explains why moisture control matters; have persistent problems assessed rather than covering them with a new finish.
• Check the plumbing and wiring. Those pipes and wires are the arteries of a healthy house, and they should not be ignored until it’s too late.

Address known maintenance concerns and present the property accurately. Condition may inform negotiations, but it does not guarantee an advantage or a particular sale price.

Final Words

If you plan to sell, discuss the property, current market and proposed improvements with a local real-estate professional. Compare the costs and practical benefits without assuming a guaranteed increase in resale value.

• Discuss current buyer preferences with a local real-estate professional. Age or household labels do not establish what an individual buyer will want.
• Hire a realtor you can trust. Do a background check and even interviews to figure out how serious they are about their job.  Research their previous sells to know-how in sync they are with the market.
• Organize open houses in a professional manner. Be presentable when someone drops in to check out the place.
• Pick a realistic price point.  Instead of depending solely on your realtor’s advice, do your own research. And if you have the money to spare, you can even get an official appraisal done.
• Remove personal clutter once the open houses start. Keep it minimalistic, so that the visiting homebuyer can envision herself living there without your personal belongings coming in between.
• Realistically, it is always hard to get the price you want. Be flexible and willing to negotiate, especially if you are on a time limit.
• Clean up your lawn and trim the shrubs.  It is the first thing anyone visiting would notice before entering your home.
• Make sure you have all your ducks in a row once an offer has been made and accepted. Any delays can be off-putting and can potentially turn the buyer away.
• Keep the property in the condition required by the sale contract. Ask the responsible real estate or legal professional about obligations and remedies under that agreement rather than relying on a universal cancellation rule.

In Conclusion

Avoid choosing expensive work solely on an assumed resale premium. Compare the scope with the house’s condition, your priorities and realistic local advice.

A lot of it will depend on your neighborhood and potential buyers, so do your research well.