If you’re planning on selling your home, let’s say in two years, you should start thinking of ways to maximize your home value with projects that have higher return of investment. Yes, it involves cost but the projects you select and the upgrades you choose will minimize it and maximize the returns when you sell your home.
Here are some ways to maximize the value of your home:
1. Select projects or improvements with high return
According to the 2016 edition of Remodeling Magazine’s “Cost vs Value Report,” some of the biggest payback comes from small upgrades like minor kitchen upgrades or replacing the garage door. In the report, there are projects that costs less than $2000 like insulating the attic with fiberglass for $1,268 with 117% payoff. Replacing the front door with steel costs $1,335 with 91% return. Kitchen looks to be the most popular improvements and remodeling it costs approximately $20,000 but the payoff is as much as 83%.
2. Keep financing to a minimum
According to Time.com, “If you’re going to borrow, choose a home-equity line of credit rather than a home-equity loan, says Jordan Dobbs, a loan officer at Washington First Mortgage in Rockville, Md., because you can usually get a lower rate for a short term. As of late March, introductory HELOC rates were 3.75% to 5% for borrowers with good credit; home-equity loans were at 3.74% to 6.75%.” Andrea Blackwelder, a Denver financial planner also advises on sticking to what you can cover with cash or loans with low interest rates (less than 4%) and payoff in two years.
3. Choose Green
Energy-efficiency improvements can cut 20 to 25% off your utilities. From new LED fixtures to energy-efficient windows, you can have big savings on cooling, heating and other utility bills. You can go bigger with solar panels and get payoff within seven to twelve years.
Routine maintenance is a low-cost way of preserving your home’s value. Fixing small cracks can prevent a major rehab. You can also have your appliances services twice a year and roof inspection for damages annually. Be always on top of small problems.
Source: Smartest Ways to Max Out Your Home’s Value, Daniel Bortz, Time