Value appreciation isn't guaranteed – here's what you can do to help your home become more valuable over time.
What is a home’s appreciation rate? When a home appreciates, its resell value increases, allowing owners to build equity and potentially profit from their investment. It’s hard to predict a home’s exact rate of appreciation, as it’s based on several factors like market conditions, location, property maintenance and inflation. But, some key factors play a significant role in adding to a home’s value.
If you are looking to help your home become more valuable over time, here are some tips to consider:
Regular maintenance and repairs
One of the most important ways to maintain and potentially increase your home’s value is by keeping up with regular maintenance and repairs. A well-maintained home looks and feels better while telling potential buyers that the property has been cared for.
Be sure to schedule annual inspections for your HVAC, plumbing and electrical systems. Preventive maintenance can save you money in the long run and help preserve your home’s value.
Home improvements and upgrades
Improvements can enhance your home’s overall appeal and functionality, which can increase its value. Start by taking a look at your home’s current layout. Are the tiles in the kitchen cracked? Is the grout in your bathroom stained? Do you need to replace the leaky faucet in the bathroom? Consider consulting with an inspector or contractor to determine which improvements will most likely resonate with buyers.
Curb appeal
First impressions matter – especially in real estate. Boosting your home’s curb appeal can affect its value. Start with some simple landscaping. Keep your lawn mowed, purchase new mulch for your flower beds and plant seasonal buds for a pop of color. A welcoming entryway with updated lighting and a fresh coat of paint on your front door can also make a positive impression on visitors.
Energy efficiency
Energy-efficient features can be a huge selling point for buyers. Not only are they good for the environment, but they also help save on your utility bill. Install a smart thermostat that improves your home’s energy efficiency, replace old appliances with more efficient ones and consider adding solar panels.
While value appreciation is not guaranteed, proactive maintenance and strategic improvements can help maximize your home’s resale value. Every home is unique, so consider your specific circumstances, budget and long-term goals when planning improvements.
At United Housing, we provide loans for families looking to improve their homes. Learn more about our 901 Help and Home Repair loan programs here.