Home upgrades not only enhance your living experience but can also significantly boost your property’s value. Whether you’re looking to enjoy your home for years to come or planning to put it on the market, certain improvements can offer substantial returns on investment. Here are the top five home upgrades that are proven to increase your home’s value and appeal.
1. Add an Accessory Dwelling Unit (ADU)
What It Is: An accessory dwelling unit (ADU) is a self-contained living space on your property. Commonly referred to as a granny flat, in-law suite, or guest house, an ADU includes its own kitchen, bathroom, and entrance.
Why It Adds Value: ADUs are in high demand due to their versatility. They can serve as a rental unit, provide additional living space for family, or even be a home office. Homes with ADUs have been shown to sell for up to 35% more on average than those without. Plus, some cities offer financial incentives for building ADUs, which can help offset construction costs.
Pro Tip: Look into local programs or incentives that may support ADU construction. A home renovation loan could also help you finance the addition.
2. Upgrade or Replace Windows
What It Is: Windows play a crucial role in your home’s energy efficiency. Upgrading to high-performance windows or improving insulation with weather stripping can reduce energy loss.
Why It Adds Value: Energy-efficient windows can lower utility bills and enhance comfort. Window replacement often has one of the highest returns on investment, making it a smart upgrade if you’re planning to sell. Modern windows also improve your home’s curb appeal and overall aesthetics.
Pro Tip: If your current windows are old, foggy, or leaking, consider replacing them with new, energy-efficient models for maximum impact.
3. Invest in Solar Panels
What It Is: Solar panels convert sunlight into electricity, reducing your reliance on traditional power sources and lowering utility costs.
Why It Adds Value: Solar energy systems can decrease your energy bills and appeal to eco-conscious buyers. Approximately 66% of U.S. homebuyers are more inclined to purchase a home with solar panels installed. Additionally, federal solar tax credits can help offset the installation costs.
Pro Tip: Bundle the cost of solar panels into an energy-efficient mortgage to potentially save on financing and take advantage of tax incentives.
4. Build a Pool
What It Is: A swimming pool can be a major attraction, offering a space for relaxation and recreation.
Why It Adds Value: In certain regions, a pool can increase your home’s value by an average of $27,199. It’s a desirable feature for many buyers, particularly in warmer climates where outdoor living is popular.
Pro Tip: Before investing in a pool, consider the maintenance costs and whether a pool will enhance your home’s value based on local market trends.
5. Construct a Deck
What It Is: A new deck expands your outdoor living space and provides a versatile area for entertaining, dining, or relaxing.
Why It Adds Value: Decks are a cost-effective way to increase usable space and can offer a return on investment of around 65%. They create a welcoming outdoor area that can attract potential buyers.
Pro Tip: Choose durable materials and consider adding features like built-in seating or lighting to maximize the appeal and functionality of your deck.
Top DIY Projects for Added Value
While major upgrades can yield significant returns, smaller DIY projects can also improve your home’s value and efficiency. Here are a few manageable DIY tasks to consider:
- Replace Your Dishwasher: Modern, energy-efficient dishwashers conserve water and electricity, which can reduce utility bills.
- Install a Water Filter: An under-sink water filter improves water quality and eliminates the need for bottled water.
- Add Ceiling Fans: Ceiling fans enhance air circulation, making your home more comfortable year-round.
- Paint Your Interior Walls: Fresh paint can revitalize your home’s interior and make it more appealing to potential buyers.
- Pressure-Wash Your Exterior: A thorough pressure wash can refresh your home’s appearance and boost curb appeal.
Ready to Upgrade?
Choosing the right upgrades can make a significant difference in your home’s value and livability. Whether you’re investing in major renovations or tackling simple DIY projects, these improvements can enhance your home’s appeal and functionality. For personalized advice on financing your home upgrades, give us a call today.