There is a myriad of ways to implement strategies that work to improve your home's return on investment (ROI). As any homeowner can attest, owning your home is a significant investment. Your home is one of the best ways to grow your wealth by building home equity.
While in most markets, home values appreciate over time, it’s difficult to predict the way personal factors or macroeconomics could potentially impact the markets. Notwithstanding, there are certain changes you can make to improve your home’s value outside of standard appreciation. Below, we highlight some ways to increase the value of your Ladue home and improve your ROI.
Consider options that add square footage
A recent survey
found that the need for more space was ranked number one as a moving motivator, and as the last two years demonstrated, a spacious home contributes to happiness and productivity.
Top ways to increase your home’s square footage include:
Adding a home office: As more people transition to working from home, this trend will likely remain in place for many in the foreseeable future. Subsequently, a leading priority among buyers is the need to purchase a home with a home office. Creating or reconfiguring a home office is a great investment, especially among buyers who are almost exclusively telecommuting. Data suggests
that a home office can add over $10,000 in resale value. This same data estimates the value of an accessory dwelling unit (ADU) can increase a home’s value from $47,600 to $66,000
Open your floor plan: As people spend more working from home, an open layout ensures homeowners are still able to enjoy family time and entertainment. Creating a spacious layout is among the top needs of prospective buyers when exploring their wish list. An open layout between the kitchen and dining room is a favored option among people shopping for a new home. It’s important to assess the home’s structural support and reach out to a professional contractor or interior designer prior to opening the floor plan.
Look to enhance your home’s curb appeal
As in most things in life, first impressions are important. When you consider a home’s curb appeal, you likely view it as the first impression of a property and an indication of a homeowner's love and care for their home.
Curb appeal holds such a significant space in prospective buyers’ minds that they are willing to pay 7% more
for a home with great curb appeal in comparison to a home with an overlooked exterior. Real estate professionals also suggest not investing a lot to enhance your home's curb appeal. Rather, basic lawn care including cutting the grass, fertilizing lawns, and removing weeds can yield a significant ROI.
Additional touches to spruce up your home’s curb appeal include updating house numbers and your mailbox, repainting your home's exterior, and replacing the garage door. The goal is to create a more contemporary look for your home without having to take on time-consuming or expensive projects that may not necessarily provide the most significant ROI.
Staging and upgrades to make your home stand out
Professional home staging offers a valuable way to create an inviting and dynamic space—one where prospective buyers envision themselves spending time in. Home stagers will likely add thoughtful touches including furniture, plants, and artwork to create a more desirable space. According to real estate experts, staging can increase a home’s offers by up to 20%.
Updating your home’s finishes is another simple solution for boosting your home’s ROI. This can include changing outdated door knobs or locks to more on-trend tones and finishes (i.e., switching brass to brushed nickel). Changing traditional and incandescent bulbs to LED lights is a minor change that can create a big impact on buyers. Low-cost upgrades such as swapping fixtures for more contemporary looks are another easy way to increase the value of your home to buyers.
Smart technology with safety-enhancing gadgets is another top wish list item among buyers. By installing smart safety devices such as thermostats, fire detectors, lighting, and door locks, your home will stand out to tech-savvy buyers. Sellers are able to install many of these devices for under $1,000 and see an attractive ROI.
The same way homebuyers favor smarter homes, eco-friendly properties are increasingly becoming a top priority for many buyers. Energy-efficient homes provide eco-friendly solutions and are a great way to reduce utility consumption and lower your bills.
Consider discussing eco-conscious home trends and upgrades with your Realtor, and learn more about how many of these can be done on a budget. You can increase the property value of your home by replacing outdated appliances with more efficient models, installing double-pane windows, installing solar panels, and installing a smart thermostat to improve your home's energy efficiency.
For energy upgrades, consulting a certified energy auditor or local utility company can help you analyze areas where your home may be wasting energy. It can also help you assess the upgrades to save the most money and the best ones to increase your home’s value.
In summary, consult with your trusted real estate professional to assess what areas will add value to your home. As you evaluate strategies, look around and identify which updates will be worth the effort.
Consider whether your plans will help a buyer see your home as a desirable investment, then focus on those needs first. From modern home office designs to a floor plan that promotes a balance between work, family, and relaxation, identify areas that require the most attention and will create the biggest impact on prospective buyers. When you’re unsure about how to proceed, consult your Realtor to discuss trends specific to the Ladue community.