The best home improvement projects won’t just spruce up your house ─ they’ll increase its value
If you’ve been monitoring your home on Zillow or Trulia, getting ready to put it on the market now or in the future, you may be asking yourself “How can I increase my value?” The surest route to improving resale value is performing some strategic home improvements. The key is choosing the projects that deliver the biggest bang for your buck.
The best way to get started with your home improvement efforts is taking care of basic home maintenance. Upgrades such as replacing an aging water heater or adding a fresh coat of paint can boost your home’s resale value and enhance its curb appeal. Even the most extensive remodels won’t impress a buyer who is put off by a leaky roof or dripping faucets. Many projects can be done on a do-it-yourself basis, but whether it’s a DIY job or you hire a licensed contractor, some basic home improvements can make a positive impression on potential buyers.
Replacing and upgrading older features, such as doors and windows, generally yields a solid return on investment. Installing new siding is one of the best projects for retaining its value at resale. Installing a new front door also can add value while increasing exterior appeal.
Most realtors agree that kitchen and bathroom remodels are among the top projects to maximize your home's value. In fact, kitchen and bath upgrades can return more than 100 percent of their cost at resale time. Consider replacing old appliances and fixtures, upgrading lighting, sinks and countertops or installing new flooring to give these rooms an updated look.
Adding space to your home is also regarded as a sound investment. Every 1,000 square feet added to a home increases the sale price by more than 30 percent, according to a study by the National Association of Realtors. Bathroom additions provide the best return, followed by the addition of attic bedrooms, family rooms and sunrooms.
Many potential buyers put a premium on energy efficiency when shopping for a new home. Consider replacing older heating and cooling systems with energy-efficient upgrades, as well as swapping old appliances with Energy Star-rated appliances. Installing energy-efficient windows and insulation can also add value.
If the cost of a renovation is holding you back, there are some excellent loan and home equity line of credit (HELOC) programs to provide a stream of cash for home improvements. If your home is worth more now than it was when you originally purchased it, Alliance Home Loans offers a Cash Out Refinance loan program that lets you convert your home's equity into cash to fund home improvement projects ─ whether you currently have a conventional loan, a VA, or an FHA loan. And if you’re in the market for a fixer-upper, Alliance has a FHA 203(k) Renovation Loan program that provides funds for both the purchase and renovation of a home packaged into one mortgage loan.
Whether you’re planning to make a few basic upgrades or a major renovation, a home improvement project is a great way to increase your home’s market value as well as your equity. An Alliance Home Loans expert can help you find the right loan program to finance your project. To explore and discuss your options, contact us today.