How to Drive Up the Value of Home Upgrades That Pay Off (2)

For many people who own a home, it is typical to start doing projects to improve the house. These can be small things or big renovations. But you must always think about how these home improvements will affect the selling price of your property.

Home renovations, as you might know, can be costly. They include everything from the cost of materials to paying for people’s work. However, not every project will yield a good return on investment (ROI). When aiming to boost your home’s worth with renovations, careful planning, and smart choices are crucial.

Separating renovations that are worth their expenses from ones that aren’t can have a big impact on your choices when getting ready to sell your house.

Improvements to a home can be big or small. You might think about changing your whole kitchen or just getting new garage doors. Finding the right balance between what you like and what makes sense can be hard when it’s about your biggest investment.

The Joint Center for Housing Studies at Harvard University (JCHS) reports that spending on home improvement projects rose from $328 billion in 2019 to $472 billion in 2022. They project that spending will continue to climb, reaching an estimated $485 billion in 2024.

To help you with this, let’s explore remodeling projects that are recognized for giving the best return on your investment.

Simple Ways to Add Value to Your Home

Invest in HVAC and heating systems.

Investing in HVAC (Heating, Ventilation, and Air Conditioning) systems is substantial for homeowners because of the money needed to install or upgrade them. The way these systems work directly affects how much you pay for utilities each month, so they are very important things that people who might buy your house will look at. 

Charles Fischer, a real estate investor, broker, and CEO of Fischer Group at eXp Realty on Florida’s Space Coast, talks about how important it is to have upgraded HVAC systems to attract buyers. 

He stresses that buyers look for energy efficiency when considering cost management, especially in circumstances with high-interest rates. Hence, homes equipped with improved HVAC systems usually increase home value, attracting possible purchasers who are eager to cut down on utility costs while remaining within their budget range.

Clean, declutter, and organize.

It is a straightforward but very beneficial way to increase the worth of your home without spending much. A well-kept and clutter-free house not only looks good for potential purchasers but also makes it easier for them to imagine themselves residing in it. Experts suggest that sellers remove clutter as their initial action. This task is simple and free of charge, and it can make the living area appear bigger right away.

For a person who wants to buy a house in Nashville, the value of a clean and well-organized home is significant. These projects are economical and frequently give back more than 100% in return on investment (ROI).

Consider the following projects:

  • Pressure cleaning: It is better to focus on sections like siding, driveway, or deck to make the house look better from the outside.
  • Cleaning the windows: It’s important to clean the windows as they let in more natural light and give a feeling of careful maintenance.
  • Garage decluttering: A garage that is in order not only appears nice but also helps with the process of leaving the house when you want to sell it.
  • Carpet wash and scrub: It is a good idea to freshen up your carpets. This can make the inside look lively again and might help in enhancing the quality of the air indoors.
  • Cleaning and resealing of bathroom grout: It’s a small job, but it can make the bathrooms look fresh and new again.

Home Hardening’ Improvements

With the increasing frequency of extreme weather events, homebuyers are increasingly prioritizing properties that have undergone renovations to withstand natural disasters.

Extreme weather will drive the trend of ‘home hardening’—enhancing homes to be more resistant and resilient to weather events. In 2024, more homeowners will focus on weather-related maintenance to safeguard their properties from wildfires, hurricanes, floods, and other natural calamities. Several “home hardening” improvements are witnessing growing demand among buyers.

There’s a rising interest in improvements such as solar power systems to ensure power reliability during weather events, gutter maintenance to prevent the accumulation of dry leaves that pose fire risks, and windows with robust insulation to withstand high winds and extreme temperatures. These enhancements not only boost a home’s value and aid in preventive maintenance but can also potentially save lives.

In-Home Water Filtration Systems

In line with home improvement projects that prioritize the health and safety of residents, experts also advocate for the installation of in-home water filtration systems in 2024. “There’s a growing demand for in-home water filtration systems due to declining water quality across the U.S.,” explained the expert. 

“Nearly 50% of tap water in the U.S. contains PFAS, commonly known as ‘forever chemicals,’ which have been linked to severe health issues, including cancer.

“What’s more, conventional water filters like those in refrigerators aren’t effective enough to eliminate all PFAS,” the expert continued. “As a result, homeowners are turning to reverse osmosis water filtration systems for their entire homes, particularly in regions highly susceptible to contaminated water.”

Bottom Line

In making changes to your home, it is important to put your comfort and needs first. This means that increasing the value of property should not be considered a main goal. Yet, if you are planning to sell in the future, it’s also crucial for you to think about improvements that could attract possible purchasers.

But if selling is coming up, it’s important to include improvements that potential buyers will like.

Being realistic is very important. This comes from real estate history, showing that not all money spent on remodeling projects can be recovered by homeowners. Though making a profit is possible, it’s not always certain. It’s merely one aspect among many to consider.