Thinking about upgrading your home? The right improvements can make your space more enjoyable and even increase its value. But not every project pays off the same way. Before you start, it’s smart to know which upgrades offer the best return and which might not be worth the cost.
Smart Ways to Add Value to Your Home
Before beginning a renovation, it’s important to consider different factors that can affect your home’s value, such as nearby school districts, the condition of surrounding properties, and housing market trends. In some cases, a renovation or remodel may be beneficial for you personally but won’t necessarily increase resale value. If you have questions about the value of your home related to the area in which you live, speaking with a real estate agent may be in your best interest.
If you decide you’d like to improve your home, the following options may be worth considering:
- Upgrade insulation: Adding attic insulation is one of the smartest home improvements you can make. Recent reports show it often delivers about a 114% return on investment through energy savings and improved comfort, making it a win for both your wallet and your home’s value.
- Add a fresh coat of paint: The right color can boost buyer interest and even increase offers as much as an average of $2,590 more for homes with the right interior paint colors. Nature-inspired tones like deep greens and blues are trending over plain white.
- Boost curb appeal: Simple landscaping tasks like trimming shrubs, painting the front door, and replacing worn siding can enhance your home’s overall value.
What Upgrades Add Value to Your Home?
While small projects can go a long way, you can also consider larger projects to add more value. These include:
- Installing new garage doors: Average cost recouped: 267%.
- Adding steel entry doors: Average cost recouped: 216%.
- Minor kitchen remodel: Average cost recouped: 112%.
Adding square footage can boost your home’s equity, but not all additions offer the same return. A new bedroom or sunroom often adds more value than cosmetic upgrades, while finishing a basement may improve livability without significantly increasing equity.
Projects That Might Not Pay Off
If you’re thinking about larger renovations, keep in mind that not all projects yield high returns. Home improvements that are known to add less value include:
- Adding a bathroom: Average return of 53%.
- Primary suite addition: Average return of 32%.
- Solar power panel installation: Average return of 32%.
While these improvements do usually recoup some of the investment required to complete them, they don’t add as much value at resale.
Leverage Your Home’s Equity for Future Projects
Home improvements are an investment in both comfort and long-term value. If you’re ready to tackle a project – whether it’s adding space, boosting efficiency, or making overdue repairs – your home’s equity can help make it happen.
At PSECU, we offer flexible home equity options designed to fit your goals. Using the equity you’ve built can make funding upgrades easier without draining your savings.
