Many homeowners assume they must sink thousands of dollars into upgrades to increase the value of their homes. The truth is, some luxurious additions aren’t worth the cost. They may hinder the number of prospective buyers when it’s time to sell.
So what can you do?
Keep reading to discover how curb appeal, residential solar panels, small upgrades to the kitchen, and other additions can immediately add value to your home.
A negative curb appeal is one thing that can immediately hinder all the hard work you put in to make your interior look modern and feel cozy.
Additions like installing a new front door are an affordable way to improve your home’s appearance. You can also retouch the paint, powerwash the sides of your home, plant a flower bed, and maintain your lawn to truly keep costs down.
Energy-Efficient Appliances and Installations
In addition to the curb appeal, having upgraded and maintained installations make your home much more appealing to buyers. This can include matching appliances, energy-efficient double pane windows, switches, and sockets.
Who doesn’t mind paying a little more for the comfort of moving into a home ready to save money and time?
When you go appliance shopping, you may find that the best budget-friendly options don’t always match. If that’s the case, a great way to achieve a more aesthetic look is to order new panels directly from the manufacturer. That way, you don’t have to shell out thousands on a matching set.
Like solar panels, appliances and installations help save on more than energy bills. Energy Star-rated installations and appliances may qualify you for additional tax savings with the federal green energy tax credit.
Similar to front doors, installations like windows must be in good condition to receive a fair offer. While they may not provide the most value to your home, unmaintained windows can drastically reduce your final asking price.
It’s becoming increasingly common to see rows of homes fitted with large solar panels. The rise in popularity is not only because of the drastic reduction in energy bills but also due to the increase in home value.
For example, homes in the New York City metro area have sold for over five percent higher than similar homes without solar power. In a city where the median home price is close to $750,000, that translates to an increase of over $20,000.
Some homeowners may prefer not to buy solar panels because of the initial costs. However, one argument is that those costs are paid back through the significant reduction and even elimination of energy bills.
The cost of solar panels has fallen and is expected to get even cheaper in the coming years. If you don’t want to wait to reap the benefits of solar power, then one way to save now is to take advantage of the 26 percent federal solar tax credit.
Another cost-effective addition to your home is to install a small wind turbine. While it is an affordable option compared to solar panels, it comes with a few caveats.
For one, a home wind turbine must be situated in an area with constant winds to make it worthwhile. They must be installed in an area with consistent wind patterns throughout the year to justify the initial costs.
That said, if you live in a windy, remote location, it can be more cost-effective to use a small turbine instead of connecting to the grid. The general rule of thumb here is that the smaller the turbine, the smaller the initial costs. And if you travel a lot, investing in a micro wind turbine is an excellent alternative to keep you going in an RV or sailboat.
Kitchen and Bathroom Remodels
The kitchen and bathrooms play an essential role for many prospective homebuyers. The return on investment for both is extremely high at nearly 50-95 percent. But that doesn’t necessarily mean spending over $100,000 on upgrades is the smartest move.
Forgo shelling out thousands on replacing cabinets and flooring. Instead, brighten the room by repainting the walls and cabinets. Even installing budget-friendly fixtures like handles and drawers can make these rooms seem brand new.
Your Living Space
A home is expensive enough as it is, but home improvement projects that add significant value and savings don’t have to involve refinancing your mortgage. At the end of the day, your home is where you go to relax and unwind. At the same time, it’s also an appreciating asset that must be cared for.
If you want to install 10-foot garden gnomes on your roof, nobody (except maybe your HOA) can stop you! But a more strategic approach to growing your asset while keeping costs low is to focus on smaller projects like the ones outlined above.