It’s easy to overcapitalize on your home by improving aspects that carry little or no return on investment (ROI). However, some home upgrades will increase the value of your home and offer real value to potential home buyers. It’s important to steer away from the former and focus rather on the latter. With that in mind, here are six areas of your home you can upgrade that will up the value.
Installing the correct flooring in your home can have a positive outcome on cleaning, repair, and general wear & tear. Carpets are high maintenance, so you should consider replacing these with hardwood floors. There are many great hardwood options available which are easy to clean and incredibly long lasting.
Another viable option is installing cork flooring. Cork is a superior material with loads of benefits to your home and (surprisingly) your health. Cork floors are not only durable and easy to clean, but they also improve your posture. Cork has also been shown to possess anti-carcinogenic properties that fight cancer and promote health. Furthermore, cork is 100% sustainable and recyclable, so by installing this flooring you’re doing your part for the environment too!
Kitchens are strong selling points for both men and women. For many families, the kitchen is perceived as the heart of the home. This is after all where food is prepared, families gather and meals are enjoyed. By upgrading your kitchen you are enhancing the warmth of your home, which will play an important role in eventually selling it to another family.
Kitchen upgrades can include everything from:
- New cabinets that utilize space wisely (broom cupboards, corner cupboards, wall units, etc.)
- Granite or marble countertops which look better and are easy to clean
- New cupboard doors and handles
- Tiles for the walls, floor, and skirting
- Light shields, cornices, appliance housing, etc.
Today’s real estate market is on the lookout for eco-friendly house features. People have begun to recognize the benefits of green features because they ultimately save on maintenance and running costs. Here are few green features you would do well to include in your upgrade plans.
- A solar water heater will cut down approximately 60% of your water heating costs.
- Solar panels will cut down on general power expenses (even better if you have the means to store this energy in batteries for later use)
- Rainwater harvesting is expensive to install but will give you a huge ROI down the line. Harvested rainwater can be used for toilet flushing, garden irrigation and as an outdoor water source.
When you point out to prospective buyers that running your home costs less than other homes, you can confidently ask for a higher asking price. There are various ways you can upgrade your home to keep utility costs down to a minimum. Here are a few:
- Install a timer on your water heater. Two – four hours of heating per day is enough to provide your family with hot water.
- Have insulation placed in your ceiling. Retaining hot or cold air in your home will minimize the need for heating and cooling.
- Place seals on all your windows so that hot or cold air cannot escape as easily.
Be sure to mention these little features to your real estate agent when you place your home on the market.
Safety is a major concern for many families looking for homes. If your home has robust security measures in place, prospective buyers will be more willing to pay your asking price. Security gates, access control points, and smart alarm systems can all turn out to be excellent ways of increasing your home’s ROI.
If you can add a bathroom to your home, the value will go way up. If this isn’t possible, you can also refurbish and modernize your current bathroom. Adding a large bath, increasing the shower size, adding new bathroom fixtures and re-tiling can give your entire home a completely different feel.
Another way to upgrade your bathroom is to expand it. Knocking out a wall and widening your bathroom area is an affordable way to increase the market price. Large bathrooms fetch higher property prices, so consider expanding yours if you’re thinking of selling one day.
Remember that over capitalization can still occur in areas where these particular upgrades are not sought after. If the buyers in your area aren’t quite ready to pay higher prices for luxury home features, it’s pointless making these upgrades. Speak to a real estate expert to make sure you aren’t wasting money on features you can’t claim back on.