✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.
Want to sell your house in 2024? Increase its value to sell it for 7% more. Also, increasing home value can help you to sell it 30% faster.
Making strategic improvements or remodeling is the first step to increasing your home’s value in 2024. Moreover, you can remodel your kitchen, change doors/ windows, etc. to increase its value. Once you’re done with your renovation projects ensure that you price your home competitively.
With Houzeo, you can get pricing assistance to help competitively price your home in the market.
How to Increase Your Home Value: 5 Effective Ways
68% of homeowners started or completed their home improvement projects in 2023. However, your ROI depends on which renovation you undertake. These 5 improvements and their estimate costs will help you make an informed decision:
1. Upgrade Your Interiors
Strategic improvements in the interior of your home can give you a 70% ROI.
- Improve the Kitchen: Upgrade your kitchen’s counter top with materials such as granite or quartz which may costs around $2,356. Repaint your kitchen in colors like white or light gray. This will increase its sophistication but could cost you around $1,319.
- Upgrade Your Bathroom: Replace your shower fixture and install a new shower head. Tile the shower walls and install LED lights which will amount to the overall cost of $1,043. Replace your kitchen’s vanity countertop with materials such as marble, quartz, or granite which will cost you around $1,100.
- Install New Carpet: Choose based on the fiber- nylon, polyester, or wool and the one that is soft and durable. Installing a neutral beige or gray color carpet will make it look elegant and will cost you around $2,486.
2. Focus on Curb Appeal
Your house value increases by 5% to 11% when you increase its curb appeal.
- Upgrade Your Exterior Doors and Windows: Upgrade your front door with materials such as fiberglass or steel. They offer an elegant look and cost between $450 to $1,700 to install new doors . Replace your old windows with materials such as vinyl, or fiberglass which would cost around $450 to $1,400 per window.
- Landscape Around the House: Lay a bed of colorful flowers such as marigolds and daffodils in the front yard. A professional charges around $800-3,000 for this. Install a vinyl fence with lattice panels. It increases the outdoor space’s visual appeal but would cost between $1,800 to $6,200 for the installation.
- Paint Your Exterior: Choose neutral beige or light grey colors that make your house look clean and elegant. It helps attract potential buyers and may cost around $1,810 – $4,507.
3. Create an Energy-Efficient Home
To make your home energy-efficient, you can install solar panels that give a 4% to 10% ROI.
- Install Energy-Efficient Appliances: Install double-paned windows that improve home insulation and reduce air leakage. This results in lower energy consumption and may cost between $300 and $2,100 per window installation.
- Install Solar Panels: If you have an extensive budget consider installing solar panels. They harness sunlight and convert it into electricity. This helps you save money on electricity bills. The price varies based on the type of solar panels you install and typically costs between $8,500 to $30,500.
4. Add Usable Square Footage
Merge two rooms to make a larger one. You can use the new room as a spacious kitchen, a large dining area, or a master bedroom. The average cost of a bump-out is $11,300.
5. Stage Your Home
Remove excess clutter and rearrange furniture to give your home a spacious look. Add throw pillows to sofas, chairs, and beds as they make the room cozy. Hang artwork on the walls of the house to add style to the room. According to HomeAdvisor, the typical price range to stage your home is $791 – $2,837.
Pros and Cons
If you’re still hesitant about improving your home, here are some pros and cons to help you decide.
✅ Pros
- Saves You Money: When you use a good quality carpet you won’t need to replace it every year. Carpets made from materials such as nylon or wool last for more than 15 years.
- Increases Resale Value: When you improve your home you can sell it for higher value. This means you get a high ROI when you resale the house.
❌ Cons
- Increases Home Property Tax: Tax assessments are mostly based on the value of the house. Thus, when you raise your home’s value you may have to pay more property tax.
- Raises Affordability Issues: People and families with lower incomes may find it difficult to opt for your house.
Estimated Costs of Home Improvement
The table shows you the maximum costs of home improvements based on the scale of the project.
| Improvement Scale | Max Costs |
| Small-to-medium projects | $62,000 |
| Large projects | $82,000 |
Resale Value After Improvement
The table shows an estimated value of a house and its associated repair costs. The formula helps you get the approximate value of your house after improvement.
| House Costs | $5,50,000 |
| Upgradation Costs | $40,000 |
| After-Repair-Value (ARV) | $5,50,000 + (70% x $40,000) = $5,78,000. |
How to Pay for Improvements to Increase Home Value
These financing options will help you cover your home improvement costs:
1. Take Home Equity Loans
A HELOC lets you borrow funds up to the credit limit. During the draw period, which is usually 5-10 years, you have to pay only the interest. Once it ends, you have to make principal and interest payments on the remaining balance.
2. Use Cash-Out Refinance
Cash-out refinance means to replace your current mortgage with a new one for a larger amount. You receive excess funds from the new mortgage, surpassing the remaining balance on your current one. Cash-out refinance for home improvements may enable you to deduct interest payments on your taxes.
3. Pay with Credit Card
You can use a credit card for minor home improvements. With an existing card, you can make payments easily. However, some credit card companies offer an intro 0% APR for a specific period. Annual Percentage Rate (APR ) is the interest rate payable when you borrow money using a credit card.
4. Personal Loan
Consider a personal loan for home improvement if you lack equity for HELOC. They generally have a 5% to 36% interest rate depending on the type of improvement. Your credit and income determine the amount you can borrow.
Should You Increase Your Home Value?
Whether your house value will increase or not depends on various factors such as:
- Type of improvement
- Current market trends
- Your home size
- Your house location
Consider your current home value and the estimated cost of each improvement to make an informed decision.
You can find your home’s estimated value using Houzeo’s house value estimator. With this, you can competitively price your home and get it listed on the MLS in less than 24 hrs. Houzeo also syndicates your listing to multiple real estate websites like Zillow, Trulia, Redfin, etc. to give your property maximum exposure.
Eager to Know How Houzeo Works?
We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best MLS listing websites in the U.S.
How to List on MLS With Houzeo?
5 Easy Steps to List on MLS with Houzeo by owner
» Houzeo Reviews: See how Houzeo home sellers save thousands with Houzeo technology and MLS exposure.
Frequently Asked Questions
How to increase home value?
Here are 5 easy ways to increase home value:
1. Upgrade your interior
2. Focus on curb appeal
3. Create an energy-efficient home
4. Add usable square footage
5. Stage your home
Will solar increase home value?
Yes. According to Zillow, houses with solar panels sell for 4.1% more than homes without them.
How to increase home value by $50,000?
To increase your home's value by $50,000 you have to consider market factors and make strategic home improvements. To be specific, consider replacing your kitchen's countertops, painting the cabinets, and using high-quality appliances. Replace your bathroom's old shower heads, and lights with new ones.
