Whether you plan to sell your house in the near future or you just want to build up home equity, there are numerous things you can do to add value to your home. Some improvements ― like adding a fresh coat of paint ― are relatively simple and can be accomplished without a home improvement loan. Other items, such as a major bathroom remodel, are going to cost a lot more and may require financing with the help of a home improvement loan.
Ways to Add Value to Your Home
You might be surprised by some of the ways that you can add value to your home. Listed here are upgrades that you can make to increase your home’s appeal and market value (and some of them won’t even require a home improvement loan):
- Update the kitchen (at the very least, buy new appliances and replace the cabinets)
- Paint the house (exterior and/or interior)
- Install hardwood flooring
- Spruce up the landscaping (consider adding a fence)
- Add a deck or patio
- Change the exterior siding
- Make energy efficient upgrades
- Update the bathroom
- Replace the windows
- Renovate the master bedroom/bathroom (suite)
- Extend a common area so it accommodates more people
It’s a good idea to take an inventory of what could be improved in your home and prioritize those items. You must also determine if you have enough equity to get a home improvement loan and how much you can borrow to boost your home’s value. You will want to be careful, though, since defaulting on your home improvement loan could lead to foreclosure. Be smart and don’t borrow more than you need.
Also note that the truth is you will probably not recover the total cost of your home improvements. By the time you pay interest and other fees on your home improvement loan (and due to the fact that the amount of value added is rarely dollar-for-dollar), you are unlikely to recoup the entire cost.
Other Considerations
The value that you add to your home through improvements might not always be tangible. You may like your home better and feel more comfortable there after the upgrades are made ― while this is not something you can quantify in dollars, it does provide very real value for your home that can make a home improvement loan worth the cost.
Another consideration is that your home may become more sellable as a result of the home improvements. As long as your home improvement loan is reasonable and affordable, it may be worth it to make some upgrades to boost your home’s appeal on the real estate market. The value of being able to sell your home quickly is sometimes overlooked.