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Home improvements can maximize the value of your home in a down market

As an American, your home is probably one of your biggest assets. Although home values in the Florida housing market are projected to rise in 2023 and 2024, it’s pertinent to note that micro and macro economic factors could adversely affect home prices within this region.

You can’t control everything that impacts your home’s value. However, if you’re looking to sell your home, implementing several upgrades (subtle or huge) can increase your home’s valuation beyond typical appreciation.

But there’s a pressing question — what home improvements can add value to my landed property? With loads of alternatives available, it’s easy to execute superficial upgrades that won’t positively affect your house’s price. What’s worse? These improvements could be counterproductive, making your home sit on the market for too long.

You don’t want that, do you? In a bid to show you how to increase the value of your home, the real estate agents at HomesByArdor have gone through the clutter to uncover 12 house upgrade suggestions that aren’t only cost-effective but will increase your home value regardless of the prevailing economic climate.

Yearning to know more? Let’s get going!

The Rising Trend of Home Renovations

Before we delve into home renovations you can execute in 2023 and beyond, let’s take a peek at the “home improvements” trend in the United States.

According to a report released by the Joint Center of Housing Centers of Harvard University (JCHS), home improvement expenditure was $472 billion in 2022 — up from $328 billion in 2019. For 2023, these values are expected to remain at an upward trajectory, with estimates projected to hit the $485 billion mark.

From these figures, one thing’s clear — home improvements have become part and parcel of the real estate market.

Although current inflation rates as of April 2023 stand at 4.9% (almost half of last year’s high), home improvements such as dining room and bathroom upgrades are still a tad expensive to execute.

But should that deter your home improvement efforts? No. Besides maximizing the value of your home, conducting a minor or major renovation can help you sell your property faster. According to a report, homeowners who conduct improvements on their homes before listing will sell it 30% quicker than those who don’t perform upgrades.

12 Ways to Maximize the Value of Your Home

Executing renovations to increase the value of your home and attract prospective buyers is no mean feat. Here, you’d want to save money and utilize cost effective ways (improvements) that’ll yield positive results in the long run.

Before you commence home renovations, we recommend seeking the advice of a top real estate agent from HomesByArdor. An experienced realtor will give you comprehensive insight into upgrades bound to boost your home value.

Without further ado, let’s run you through the best ways to increase your home’s value in 2023 and beyond:

1. Build a Home Office

The remote era is here. According to Pew Research Center, 35% of all employees in the United States now work remotely. With remote work taking precedence, a National Association of Home Builders report states that 63% or homebuyers today seek homes with an office.

As things stand, buyers are placing more focus on home office’s instead of the house’s readiness or square footage requirements.

Creating a unique space or transforming an existing area within your home to an office is an excellent idea if you live in an area fielding a decent amount of remote workers.

The presence of a home office can increase the structure’s value by up to 20%. What’s better? This figure is bound to rise as more Americans join the “telecommute” bandwagon.

Transforming an unused space within your home into an office will increase the property's value

 

2. Conclude Your Basement

An unfinished basement might translate to more storage space. But did you know it’s possible to transform this area into a livable space (an office or entertainment spot) for prospective homebuyers?

Since the COVID-19 pandemic began, homebuyers have gravitated towards homes that can seamlessly accommodate gyms, workspaces, or bars without hassles. Houses with finished basements suit this profile.

According to estimates from Home Advisor, completing a basement can cost around $7 to $23 per square foot, with the national average cost being $25 per square foot. Although most homeowners will need to spend at least $18,395 on average, these prices could max out at $33,985 for a basement rated at 400 to 1,500 square feet. Note that this amount settles labor cost alongside other materials required for the transformation.

At first glance, it might seem like completing a basement is a financially-draining endeavor. But the reverse is the case as a completed basement can increase your home’s total value by $40,000 or $50,000.

3. Add a Steel Door

Are you searching for the best ways to increase your home value? If yes, consider adding a steel front door to your Florida property.

Your home’s front door serves as the point of entry. From curb appeal to security and safety, this fixture creates a solid first impression for homebuyers.

Replacing an old exterior front door with one made from steel will improve your home’s energy efficiency. An energy efficient home translates into low electrical bills. As such, you can place a high asking price on your house and score great offers from prospective homebuyers.

What’s better? Steel doors won’t bore a hole in your finances. In fact, you’ll find rock-solid variations for values starting from $500.

4. Garage Door Replacements

Maximizing the value of your home means removing the slightest of imperfections before listing it on an MLS. If you intend making a major or minor remodel, one area to consider is the garage door.

Does it look outdated or make squeaking sounds when in use? If your answer to any of these questions is “yes,” consider an outright garage door replacement.

Replacing your garage door not only improves your home’s curb appeal. According to findings outlined in a Remodeling Magazine’s report, this improvement will result in the highest return on investment (ROI) of all remodeling projects.

This study showed that replacing a garage door with $4,302 will yield an estimated $4,418 return when the home is sold. For context, this value represents a mind-blowing 102.7%.

5. Fix Your Home’s Exterior Paint

If you intend to sell your home in the near future, touching up its exterior paint is a great idea. Today’s world is characterized by aesthetics, and most homebuyers in Florida will be ready to pay extra for homes with alluring exteriors.

For this activity, you don’t need to repaint the whole house. Rather, focus on fixing up areas with chipped or flaking paint. You can also consider painting your home’s front door and trim to deliver a solid first impression of your home.

Home Advisor affirms that homeowners will need to spend an average of $5,400 to paint the exterior areas of their home. Although this might seem quite steep on the surface, it can increase your home’s value by up to 5% and deliver a 107% ROI.

Painting the external part of your house increases its overall allure

6. Make Your Home Energy Efficient

Improvements that make your home energy efficient and reduce utility bills are always welcome by potential buyers.

For instance, installing a smart thermostat can give the homeowner the luxury of controlling their home’s temperatures whether they’re home or away on a business trip or vacation. This capability extended to the structure’s HVAC (Heating, Ventilation, and Air Conditioning) system aids convenience and comfort, thereby increasing the home’s selling point.

Furthermore, improving energy efficiency in your home can include removing leaky, old windows, installing energy efficient appliances, and upgrading insulation in your home. Although new windows and appliances are vital energy efficiency upgrades, note that they’ll create a dent on your finances.

7. Update Your Kitchen’s Look

Most buyers consider the kitchen as an integral part of any home. So, if yours is outdated, you’ll most likely receive low-ball offers from potential buyers. The same occurs if you don’t maximize your kitchen space adequately.

However, it’s vital to note that a kitchen renovation requires a lump sum that can reach $80,000. Also, there’s a chance that you won’t recoup all the money spent on related improvements.

According to the Remodeling Magazine’s report, a minor kitchen remodel that costs $26,790 will yield $22,963 in return — these figures showcase an 85.7% ROI of funds spent.

So, just before you embark on a kitchen remodel, speak to a real estate agent for insight into what improvements would increase the home’s dollar value.

8. Consider Home Staging

Just before you list your home for sale, contact a home staging service to prepare the home for future buyers. According to the National Association of Realtors, 81% of buyers’ agents confirmed that staging a home made it simpler for buyers to picture the property as their future home.

Compared to kitchen renovations, home staging expenses are relatively low. As seen on Home Advisor, the average cost for home staging is $1,776. However, note that these prices can either decrease or increase, depending on how detailed you want the entire production to be.

When searching for a home staging service, the real estate agents at HomesByArdor will come in clutch to offer context on top-tier entities you can engage and get the most value for your money.

9. Add a Parking Area

If you’re looking at maximizing the value of your home, consider adding a parking spot to the structure. This add-on will come in handy, especially in busy Florida’ areas where people pay a premium for parking.

Adding a parking spot to your home is as simple as adding a concrete pad that costs anywhere from $600. This investment will make your property more attractive, spurring interested buyers to pay top dollar for your property. Some estimates even suggest that a parking spot in your home can increase its value by up to $25,000.

10. Place a Stone Veneer at the Front

You might be wondering — what increases the value of a home? Although many alternatives exist, adding stone veneers to the front part of your home ranks as one of the most effective.

Replacing a 300 square foot band of already-fitted vinyl siding from the street-facing façade (bottom third) with adhered stone veneer costs $10,925. However, this improvement will yield a resale value of $11,177, representing a 102.3% ROI.

11. Perform Mailbox and House Number Updates

If you’d like to know how to increase the valuation of a house in Florida, there’s a golden rule you must understand — the little things matter.

Updating your mailbox and house number are little bits that’ll attract prospective buyers. When they know you’ve got a keen eye for detail, they’ll be yearning to conduct an appraisal and make an offer accordingly.

Standard mailboxes cost anywhere from $25 to $60. Regarding home numbers, you could use black-colored aluminum numbers that cost around $2.50 per digit.

House number frame welded against steel-based mailbox

12. Landscaping

Landscaping ranks as one of the many things to increase a home’s value in Florida. By thoughtfully beautifying the ground around your home, you’ve invariably created a head-turning scenery that potential buyers will adore.

Thus, make it a duty to regularly cut grass or engage a landscaping service that’ll do this alongside trimming shrubs and bushes to perfection. Depending on your home’s location, one maple tree can increase its value by up to $9,000.

Paying For Your Home Improvements: Financing Alternatives You Can Use

If you want to sell your home, it’s vital to consider how much you’ll be spending on the improvements you intend executing.

Although you could save money for select endeavors, there’s a chance you might run into expense-related bottlenecks along the way. When these issues arise, consider freeing yourself from the shackles of budget constraints and continue your remodeling efforts via these financing options:

  • Personal Loans

Personal loans let you collect a fixed amount not at a specific interest rate. With a personal loan, you don’t need to put your home up as collateral to qualify.

You can collect a personal loan worth $30,000 and above from lenders for home improvements and pay back as time passes. However, note that interest rates on these loans vary. As such, choose a low-cost alternative that’s easily repayable.

  • Home Equity Loans or Home Equity Lines of Credit (HELOCs)

Home equity loans share semblance with personal loans as both variations offer a cash sum with fixed interest rates and monthly repayment timelines.

On the other hand, Home Equity Lines of Credit (HELOCs) work like credit cards, featuring fluctuating rates alongside a credit line to borrow against.

To receive these loans, you’ll need to put up your home as collateral. Nonetheless, there’s a silver lining — you could receive lower interest rates than what’s obtainable on personal loans.

  • 0% APR Credit Cards

If you only need a small amount to conclude a home improvement, you can skip loans and utilize a 0% APR credit card. You can use associated cards to receive funds that don’t wield interest payments for a specific timeline (i.e., up to 18 months).

However, with these credit cards, you must pay your balance by the time the 0% APR offer ends. If you don’t, the interest rates increase, costing you more in repayments.

0% APR credit cards fund your expenses without accruing interests

Parting Shot

We’ve just examined 12 ways to increase your home’s value. Although these improvements are great, we recommend speaking to a top-tier real estate agent for suggestions on what variation suits your home’s needs.

As such, you’ll be able to kick-start remodeling efforts that translates into an increased sales price for your home.

If you encounter financial difficulties on the way, utilize the financing options featured in this guide.

However, ensure you make timely repayments to avoid spending more than you budgeted.

If you’d like to sell your home at a higher price, executing home improvements are non-negotiable. But with many alternatives available out there, contact the real estate agents at HomesByArdor for context on cost-effective variants that’ll deliver excellent ROI values.

Regardless of the property, our real estate professionals will go all out to help you get the best possible deal. Contact us today!

FAQs

Yes, home improvements maximize the value of your home in Florida. For example, finishing your home’s basement can add over $15,000 to its resale value. 

When making improvements, ensure you choose variations that’ll see you earn a decent amount over the original investment. 

If you’ve exceeded your set budget and would like extra cash to continue your remodeling endeavors, consider utilizing these financial aids:

  • Personal loans

  • Home equity loans

  • Home Equity Lines of Credit (HELOCs)

  • 0% APR credit cards

If you intend replacing the cabinet and dishwasher, the project should take about a week to complete. However, if the project involves complete rewiring and floor replacements, your kitchen could be “out of bounds” for three weeks to a month. 

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