Not all remodels add equity to your home, and some can even lower your asking price when you decide to sell your home. So it’s important to invest in the right home improvement project, one that would add, not detract, value from your home. Do read on for tips on remodels that add equity to your home.
Remodeling the kitchen is the most effective way to increase the value of your home. Prospective home buyers are very particular about the kitchen – it’s the most important part of the house for many. So investing in a kitchen remodel can do a lot to enhance your home equity, provided you do it the right way.
The cost of a kitchen remodel can vary from $5,000 to $75,000. One of the easiest things you can do to give your kitchen a new look is to give it a fresh paint using a modern color. Consider a low-VOC paint for the kitchen as it is more eco-friendly and does not contain dangerous chemical such as benzene which regular paint is known to have. Replace older appliances with new, energy-efficient models. Not only do they save you money as they use less energy, but are good for the environment as well.
Reinvent the Existing Space
There’s no question that adding an extra room to your house would add to its value, but it’s also one of the most expensive things you can do during a home renovation project. Instead, look at reinventing the existing space in the house to save money. Convert an attic into a bedroom, finish a basement, and convert the garage into a living space.
You can easily add to the value of your home by adding an extra bathroom. So if you only have one, add another. You should fit the new bathroom in any extra room or unused space in the house. Look for extra spaces wherever you can find them, such as under the stairs or closets. You can get a half-bath designed with 18 square feet of space, but if you want a full bath, you will need at least 30 square feet of space. Adding an extra bathroom would certainly pay off over time. Also, look to renovate the bathrooms that you already have and give them a brand new look.
Add Outdoor Living Space
One of the best ways to increase your home equity is to add outdoor living space – such as a deck – to your house. You have a deck already, make it look more appealing by giving it a new look. Improve your backyard as well. It usually costs $1,200 to $10,000 to add a deck to a home, depending on the materials used and the design.
Add Energy-Efficient Insulation
Updating your home with even the most basic energy-efficient insulation makes a huge difference indeed. It can save you $2,500 in energy bills every year and is not hard to do at all. You can insulate your attic, for example, for just $200. Insulating the house does a lot to boost its value in the property market.
Add Energy-Efficient Windows
Adding energy efficient windows makes your home more energy efficient and can save you up to $500 a year in heating and cooling costs. Also, the government offers a green energy tax credit of 10% as an incentive for upgrading to energy efficient windows. This is something you should consider very seriously indeed.