10 Expert Tips for Increasing Property Value
In 2019, US consumers spent a staggering $20,679 on housing-related expenditures. This shows an increase of 2.9%, or almost $600, from the year before. It also includes expenses for maintenance and repairs, but not home improvements.
During the same year, experts forecasted a 2.6% spike in remodeling expenditures. This would apply to the first quarter of 2020. For this period, experts said that home remodeling spending would reach $347 billion.
Increasing property value is one of the top reasons homeowners take on such projects. For many others, these provide them with a way to repair damaged house components. In either case, they are usually a must for sellers who wish to get the most value out of their home sale.
To that end, we've come up with this list of the best property value boosters to make before you sell your home.
Read on to know which ones will bring in the highest possible returns during the big closing day.
Many states, including Missouri, implement strict disclosure laws. For instance, in MO, it's unlawful to conceal or omit any material fact when selling an existing home. So, sellers in the Show-Me State must disclose material defects they know about their home.
As such, if you know that your home has foundation problems, you need to tell this to potential buyers. In doing so, you should prepare yourself to receive lower buying offers. You can accept that, or you can also repair the problem in advance.
Fixing foundation problems can cost as little as $500 for small cracks. The average range, however, is somewhere between $1,900 and $7,000. Of course, the fewer and less extensive the issues are, the lower your repair bill will be.
That may seem like a lot of money, but it's better than having a deal fall through.
The average US home has leaks that waste about 10,000 gallons of water every year. One in 10 homes also has leaks amounting to 90 gallons a day, or almost 33,000 gallons a year. In many cases, these plumbing issues take an hour or less to correct.
Besides, leaving problems with pipes unfixed can result in more severe foundation damages. As such, it's best to have these issues addressed prior to selling your home. Plus, fixing leaky pipes means you'll also be doing the environment some good.
Add or Upgrade HVAC Systems
Nine in 10 homes in Missouri utilize central air conditioning systems. Considering how the state is experiencing warmer days, this is a must-have for MO homes. As such, you can expect MO property buyers to want an air conditioning system ready when they move in.
If the HVAC system in your property is more than a decade old, consider getting it upgraded. Modern ACs are so energy efficient that they can save homeowners between 20% to 40% on energy bills. A lot of buyers want energy-efficient homes, so a new HVAC unit is one home improvement you may want to make.
Switch Out Old Bulbs
Speaking of energy-efficiency, you may want to apply this to as much of your home as you can prior to selling. 69% of real estate professionals said that its promotion added value to home listings.
You don't have to spend thousands on solar panels just to boost your home's energy efficiency. You can start small, such as replacing all old light bulbs with LED ones. LED lights are becoming more common, so they're also getting more affordable.
Include More Energy-Efficient Equipment or Devices
You may also want to upgrade to more energy-saving appliances. These may include a new dishwasher, clothes washer, and water heater. Consider swapping older showers with high-efficiency models too.
Ensure the Safety of the Electrical System
A 2019 report found that 38% of recent buyers wanted to avoid plumbing or electricity issues. So, aside from fixing leaky plumbing pipes, it's also a smart idea to get an electrical inspection. An electrician can help ensure that your home would also be safe for its new potential tenants.
Freshen Up the Exterior
Painting is one of the lowest-cost and also easiest home improvements you can do. A fresh coat of neutral color can give your whole property a significant facelift. Besides, most buyers love to see a clean canvas, as they know they can easily change it if they want to.
Repair the Hardware
All it can take to put off a serious buyer is a dilapidated fence, dented mailbox, or a rusty house number. Rotting fences may also house microorganisms that can cause health effects.
With that said, hardware repairs are some of the quickest ways to boost the value of your property. Remember, these are the first areas that home buyers would see when they get to your home. As such, improving them can make your house more presentable to potential buyers.
Welcome Potential Buyers With a Green Space
Studies found the more connection a person has to nature, the greater their well-being. When outdoors, the entire body goes through positive physiological and mental changes. They feel happier, more relaxed, and generally more amiable.
This may be one reason why people want to spend more time in a place with green space. In fact, a study found that over eight in 10 existing US households now have some form of outdoor space.
As such, it's best to spruce up your outdoor area with well-designed greenery, if possible. Prune unruly shrubs and trees, and layout a fresh layer of mulch. These simple tasks can already give your home a more welcoming feel, thus, help attract buyers.
Don't Be Afraid to Ask for Professional Help
When it comes to real estate transactions, the more heads that think together, the better. This is especially helpful after accounting for all the home improvement projects above. At this point, you'd want to get an expert to determine the value of your home.
In doing so, you can then gauge what other property value boosters you can undertake. For instance, you may be considering adding more space but unsure whether it will reap a good return. Or, you may be thinking of home staging, but unsure which staging service to select.
In such cases, you may want to hire a real estate broker who will have your best interest at heart. A broker will value your property and advise you on what else is worth improving. Your broker will also take responsibility for listing and showing your property.
Increasing Property Value With the Help of a Real Estate Expert
There you have it, your ultimate guide on increasing property value before you list your home. If you have the budget, consider including all or as many of these tips as you can in your plan. However, it's best to get your home valued first so that you can figure out which improvements to start with.
Do you need professional assistance when it comes to real estate transactions? If so, then please know that our team here at TdD Premier Real Estate can help. Please feel free to get in touch with us so we can help you boost your property's value.