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The growth of the real estate market is dependent on various factors. Your investment in the realty market can be quite profitable if the factors that affect the value of the property are in your favor.
Property value appreciation is a concept in real estate that determines the increase in its value as a result of certain aspects that influence its rate. Factors like economic trends, population growth, changes in nearby properties, supply and demand are major drivers in the property value appraisal process.
As a property owner, you can help influence the upward movement of the price on your property. There are cost-efficient ways to add value and there are the more expensive renovations that can be done. Here are a few tips for increasing the value of your property.
Tip #1: Clean, Paint & Stage The Property
Garbage and dirt are not attractive. By simply making sure your property is clean inside and out will have an immediate impact on the value of your property. Even a fresh coat of paint can make a huge difference in brightening an old space. Keep your colors neutral to appeal to a wider audience.
Many buyers lack imagination, leverage on this fact by de-cluttering and giving each room function. The proper placement, size and amount of furniture is key.
Tip #2: Curb Appeal
A new mailbox, some outdoor lights and a few deliberately placed plants can make your property more appealing.
Tip #3: Update Fixtures
Another easy way to breathe new life into a space is by simply changing a door knob, light switch, cabinet handle or even just a light fixture. You’ll be surprised at how much more inviting your property will be.
Some updates can have an average to high cost, depending on the extent of renovation and the quality of materials used. The following updates can definitely add value to your property.
Tip #4: Modernize Windows and Doors
Aside from improving the home aesthetically, it can help reduce the noise inside the house, help lower electric bills and increase natural lighting inside. French doors that lead to the backyard add elegance and skylights help brighten up spaces that lack in windows. Position windows and doors properly to help draw attention to a stunning view from your property or to downplay one that is not quite attractive (i.e., a brick wall or the neighbor’s doghouse).
Tip #5: Change The Flooring
Add value to your property by adding hardwood floors or by updating the carpet.
Tip #6: Add Insulation
Everyone wants their home to feel like a sanctuary. Reduce outside noise by adding insulation, putting in double pane windows and doors, adding some carpeting and rugs to minimize footsteps and strategically placing plants to absorb even more noise.
Tip #7: Renovate The Kitchen or Bath
Consider changing just a portion of the room or an all-out renovation. Simply updating the flooring and countertops or the toilet sink or tub could do the trick. Swapping the old appliances for a new set could also be an alternative.
You can opt to completely renovate by adding new cabinets, countertops, flooring, lighting fixtures, sinks, faucets, or even changing the layout of the room–the works!
Tip #8: Improve Siding
This update will improve the aesthetic function of your property and may likewise lower utility bills. The type of home siding will depend on which area your property is located. The material you choose should depend on whether you’re close to the ocean, or further inland.
Tip #9: Improve Layout Or Modernize The Floor Plan
This could mean taking down a wall separating the kitchen and living room, or rearranging the kitchen to construct a more usable space. It could also be adding a bathroom in the master bedroom or swapping the location of 2 rooms to create a better flow in the home.
Tip #10: Add More Livable Space
Finish an unfinished basement or the attic to add more living space to the property. Transform the garage or extend the living room to the backyard for additional usable space.
A quick note:
While it is clear that the objective is to increase the real estate value, you should be careful not to over-improve your property. It is unwise to spend a large amount of money on renovation when there won’t be a return on your investment. Before you renovate, perhaps it is a good idea to do some research to determine how much property in the area is usually worth after renovations. The services of a real estate professional might be helpful in providing you with insights and information you need. Once you’ve properly identified this value, deduct the amount you initially paid for the home, and what you’ll have left is the maximum amount you can spend on renovations and other costs like financing charges, closing costs, etc.