How to Increase the Value of Your Home: Part 2 – Long Term
It can be challenging to figure out how much your home is really worth. You may know what you paid for it and what properties are selling for in your neighborhood, but the market can still be unpredictable which can make it hard to figure out what a buyer might pay for your house.
Unfortunately, the amount you paid several years previous, the additions you made over time, and the memories you have tied up in your home are not reliable predictors of the current value of your home.
So, we have put together a two-part blog explaining the things you can do, short and long term, to optimize the value of your home in the marketplace.
Part Two: Long Term
Add a bedroom
Adding a bedroom is an opportunity to appeal to a whole different demographic and compete more favourably with other houses on sale in the area. In fact, studies have shown that adding a bedroom can increase the value by up to 10%. The only caveat to this advice is to make sure the house has enough space to bear the weight of an extra room. If the house is too small, don’t invest the money in the renovations as you will find it hard to recoup the value of your hard work – opt instead for one of our next two items!
Renovate the kitchen
As we have discussed in previous blogs, buyers love an open concept kitchen, especially those who have watched anything on HGTV in the last few years. Kitchen’s are a key focal point in any house, so any investment in kitchen upgrades is likely to boost the value of your home. Kitchen islands are hugely popular and provide additional counter space, eating room, and even acts as an additional social space. Again, you need to have the space, but these can be a fantastic addition to an open kitchen.
Replace the roof
One of the first questions in a buyer’s internal monologue when looking at a house will be “What will I have to replace and when?” Because replacing a roof is a big ticket item, a new roof can increase a home’s value by up to $15,000. If you can assure a buyer they won’t have to invest in a roof for 15-20 years (the length of a standard warranty for asphalt shingles today), your house will be looking very attractive to potential buyers. Speaking of looking attractive, your new roof will go great with your manicured lawn to make an even better first impression!
There you have it!
We hope this has been helpful, and as usual, don’t hesitate to get in touch with our local experts!