How Do I Add Value to Real Estate?
- 1). Identify what will increase the value of your real estate and what might detract from it. Consider the value of homes in your neighborhood, when you intend to sell and the project itself. According to Smart Money, adding a midrange deck to a San Francisco home could well yield more than what the addition cost, but the same project in Columbus, Ohio might only yield two-thirds of the investment outlay.
- 2). Make repairs. Before you do any remodeling or additions, you must fix anything wrong with the house, such as a leaky roof. People don't want to buy a house that they view as not well maintained.
- 3). Improve the kitchen. Most buyers consider an up-to-date kitchen a necessity. Paint the walls, stain or paint the cabinets, put in new tile, wood or stone flooring, add new countertops, replace cabinet hardware and add new appliances. You can expect to get 70 to 80 percent back on improvements to the kitchen, according to Smart Money. Opening your kitchen to another room is also an attractive improvement.
- 4). Finish your basement or make your attic into a spare room. Improvements that add to the space of a home typically hold their value longer than cosmetic changes. You can expect to get back 75 percent of the conversion cost.
- 5). Add a bathroom. It pays to make the bathroom luxurious with a marble vanity and ceramic tile, according to Smart Money. Adding a new bathroom almost pays for itself. Remodeling an existing bathroom can get you back 65 to 75 percent of the remodeling costs.
- 6). Build a deck outside. That is the most reliable outdoor improvement you can make. Decks can recoup 85 percent of their cost.
- 7). Upgrade to energy-efficient windows. You can save money on your utility bills while you are in the house, and you should be able to get 65 to 75 percent of the cost back when you sell.
- 8). Improve the curb appeal of your house. If your house makes a good first impression, it can add 5 to 10 percent to its value, according to Bankrate.com.
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