The land your home is sitting on may be increasing in value, but your home’s value may be decreasing. If you have done few to no renovations, then your property will experience natural wear and tear. When it comes time to sell, you may struggle to find a buyer and when you do, you may not get a return on your investment. How can this be avoided? Understanding home appreciation and what goes into increasing your home’s value is a good first step. Our mortgage services team has put together a few insights.
What is Home Appreciation?
When your home increases in value over time, this is known as home appreciation. When it’s time to sell, you are likely to get a return on your investment, meaning you will make more than you originally paid for the property.
There are many factors that can impact home value. For example, your home’s physical location plays a role. Homes in safe neighborhoods are more attractive to families than ones near busy roadways. Your neighbors are also a factor. Many buyers are young families looking to raise their kids in neighborhoods with other young families. If you live in a neighborhood with a dense elderly population, it’s less likely that families will buy a home where you live.
There are several factors within your control. You can increase your home value in the following ways.
Update Your Property
The appearance of your home is still very important, so by putting money into it, you are more likely to sell and make a profit. Don’t just renovate any area in your home. Focus on the rooms that will significantly increase your home value, such as the kitchen, living room, and master bedroom. Don’t forget to focus on the exterior of your property, too. Exterior upgrades that can make a huge difference include:
- Replacing the siding
- Adding a deck
- Create a grand entrance
Bigger is Better
People love homes that have a lot of space, especially young couples that want to grow their families. As a result, adding square footage to your property is a great way to increase its value. It’s important to note that renovations typically cost more than the resale value, so be extremely intentional about the improvements you make. In other words, they should always increase the value of the property. It is also recommended that they fit into your current budget and lifestyle.
Consider Energy Efficiency
Increasing the energy efficiency in your home is good for multiple reasons. Of course, the most obvious is that it can cut your energy bill in half. The second reason is that energy-efficient features are good for the environment. Much like upgrading and renovating, you should be intentional about what you make more efficient. What are the areas that can make a significant difference? Consider making your big appliances more energy-efficient, like your refrigerator and dishwasher. Install energy-efficient windows, doors, and siding to prevent heated and cooled air from escaping your home. Don’t stop there – focus on the exterior of your home, as well. Consider installing solar panels to convert solar energy into useable electricity.
These may seem like expensive upgrades, but in the end, these energy-efficient solutions will pay for themselves.
Make Your Home Smarter
Technology is the way of the future – and today, it makes life easier for everyone. As a result, more homeowners look for smart appliances in the homes they buy. They are most interested in owning a home that has smart:
- Thermostats
- Fire detectors
- Carbon monoxide detectors
- Cameras
- Locks
- Lighting systems
Financing These Upgrades
As you may have guessed, these upgrades don’t come cheap. However, it isn’t recommended that you borrow a loan or use your credit card to pay for these expenses. If you can’t pay for the upgrades yourself, these projects are not worth potentially getting into debt. Instead, focus on increasing your cash flow to make these changes in the future. Some of the best ways to do this include starting a monthly budget, asking for a raise, getting a part-time job, and paying off your current debt. You can also try to grow your savings with Robo-advisor apps.
Contact Ace Mortgage Loan Corp.
Established in 1996, our team is driven to help homeowners throughout South Florida achieve their American Dream. Our knowledgeable and friendly staff will help you navigate the mortgage market and secure a loan that fits your needs. For mortgage services in Coral Springs, contact Ace Mortgage Loan Corp. Call (954) 945-7841 to get started.