Revive's free home value report shows your home's current & potential value, and gives you 4 instant selling options.
As the real estate market continues to evolve, so too do the ways to add value to your home, whether you’re making upgrades to a home you plan to stay in for a while or one you’re looking to sell soon. Here, you’ll find current recommendations to maximize the value of your home. As industry trends develop and we gain new data about the best ways to increase home value, we will continue to update this article with the latest information.
Before you begin any home renovation project, you’ll want to understand the expert strategies that drive value to ensure the best results. Let’s dive in!
To assess your home value, there are several critical factors to consider. While every buyer weighs these factors differently, they all color buyer perception and can impact how quickly your home sells—and how much buyers are willing to pay for it.
You’ve probably heard the adage “location is everything” when it comes to choosing where to live. It’s a major consideration for home buyers based on their unique needs, but there are also primary indicators that savvy home buyers keep in mind (and appraisers use to determine the value of a home):
An easy and impactful way to estimate your home’s value is to compare sale prices of homes similar to yours in the neighborhood. This is the top metric most real estate agents rely on to calculate a home’s value. When analyzing local comps, it’s important to factor in key differences between your home and one that has recently sold. Luckily, there are easy-to-use tools (like ours) that you can access to make this part of the valuation process simple.
Depending on the number of properties for sale in your neighborhood and the number of buyers searching in your area, your home value can be impacted. As you might assume, selling in a seller’s market gives you a higher chance to sell your home for more since more buyers are competing for fewer homes on the market. When selling in a buyer’s market, it’s likely that you’ll have to adjust your selling price to attract more buyers. Market conditions also impact how long it takes your home to sell. Homes that are on the market longer can be perceived negatively by buyers.
Of course, the more space a home offers, the higher price they may be willing to pay. A home’s value is roughly estimated in price per square foot, however the price a buyer is willing to pay per square foot is anything but standard. The usable space within a home is the most important factor in determining value for both buyers and appraisers. Bedrooms and bathrooms typically hold the highest perceived value, so the more usable space available in these rooms, the higher your home will likely be valued.
Unsurprisingly, newer homes are typically assigned a higher value by appraisers. But it isn’t just about modern, updated cosmetic features. Essential functionality features like roofing, electrical, plumbing and appliances are also weighted heavily. When these features are in newer condition, they are less likely to need to be repaired or replaced quickly and therefore represent potential savings for the buyer upfront. Today, most buyers—and particularly millennial buyers—are willing to pay top dollar for move-in ready homes that require little to no immediate repairs or upgrades.
Particularly in older homes with outdated features, updating certain details can add value. Return on investment for these upgrades vary based on the local market and your existing home value. For less expensive homes, prioritize essential upgrades like kitchen remodels and bathroom upgrades for the most value impact. More expensive homes can benefit most from higher ticket upgrades like pool additions or premium finishes, like marble countertops and solid wood flooring, and appliances with high-end tech integrations.
Supply and demand is critical for the real estate market. When employment rates drop and wage increases slow, buyers’ ability to afford a home decreases as well. Be mindful of the broader economy and consider how the current economic status will impact home sales and price appreciation in your area. This is particularly important when deciding when to put your home on the market.
When it comes to affordability, interest rates impact home values more generally. Mostly, they’re important to factor into your assessment because of their influence on a buyer’s ability to pay top-dollar for a home. When interest rates increase, fewer people can afford to purchase a home and therefore it affects how much you can sell your home for. Short-term interest rates can impact buying power if a buyer has credit card or short-term loan debt, where higher interest rates make payments more expensive. Long-term interest rates can make mortgage payments less affordable as they rise, which is a major consideration in the home buying and selling process.
To make the most of your home’s value through upgrades, keep in mind that the key is to save money while you add value. Spending more on upgrades does not always guarantee proportionately higher returns, so it’s important to create a strategic plan that strikes the right balance so you’re investing in the right type, level, and amount of upgrades to maximize your returns. Depending on your budget and existing home value, these are the upgrades that can make the biggest impact.
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Our budget friendly bathroom remodeling recommendations:
Our recommendations:
A simple, cost-effective upgrade that makes a massive impact, paint can completely transform an outdated space and make it feel fresh and inviting. In fact, fresh paint has shown to earn sellers a 152% ROI (Homelight, 2024). And painting isn’t only reserved for updating your walls; add a few coats to cabinetry and trim, too, for a fully refreshed look throughout the home.
Speaking of low-cost, high-impact upgrades, a clean home is essential. Few things can deter a home buyer quicker than a messy, cluttered space. Not only does it make it more difficult to envision how they would use each room of the home, but it also raises concerns about pests, mold, water damage, and other maintenance issues that may be hiding under the surfaces of the property.
With just a few inexpensive adjustments, you can make a home more attractive to today’s buyers. Energy-efficient solutions like swapping out incandescent bulbs for LED lighting and weather stripping for better insulation can add value by reducing future energy costs upfront for potential buyers.
Curb appeal matters, and simple landscaping upgrades can make a big difference in buyer perception. Make a better first impression by adding plants like small trees, shrubs or flowers to walkways and plant beds and finish with mulch and clean edging for low maintenance upkeep.
Take your curb appeal up another notch by making sure features like the house numbers, mail box, and other exterior fixtures are in good cosmetic condition and any functions are working properly. This extra attention to detail shows potential buyers that the home has been well cared for, which can help them envision their life in it even more easily.
On average, a kitchen remodel can increase your home’s resale value, with ROI ranging from 32% to 86%, depending on the type and scale of renovations.
Get your free home value estimator with current & potential value and 4 instant selling options.
As you can see, there are plenty of improvements you can make that add substantial value to a home. However, there are a few upgrades that may seem like big value adds, but actually tend to cost you more in the long run with minimal returns.
Before diving into any home improvement project, you should assess your budget and explore funding options if necessary to create a plan that optimizes your ROI. Here are the top financing options available:
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While there is an abundance of evidence that supports that renovated turnkey homes sell faster and for more, Revive, nor the Contractor, can guarantee a specific as-is or after renovation value or the exact time that it would take to get a renovated home sold. Further, Revive cannot provide a guarantee that the real estate market will not experience fluctuations or a decrease during the renovation or sales period.
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