United States home prices are continuing to break records. Each month, prices continue to grow and homeowners are reaping the benefits.
Since May 2020, home prices are up nearly 17% over the course of a year. This is the highest recorded growth rate in history.
While property values are naturally increasing due to market dynamics, there is more you can do. There are certain home improvements that are proven to increase home values.
Read on to answer the question, “What is property value?” Explore how to increase your property value estimate with this comprehensive guide.
What Is Property Value?
The first step is defining what property value entails. Many people wonder how much their house is worth.
However, the calculation is more complicated. It also involves the piece of land that you live on.
A larger piece of property is naturally going to be worth more. There are other factors that may make your land more valuable. Waterfront homes or properties with a mountain view are more desirable and worth more.
Your property value also includes exterior structures ancillary to the primary residence. For example, you may have a vinyl fence or in-ground pool that boosts your property value. Decks, paver patios, and detached garages may also be considered when performing a property value assessment.
How to Increase Your Property Value?
Once a homeowner learns their property value, many have an inclination to increase it. They are curious about what home improvement projects will make their property more desirable and worth more.
When considering home improvement projects, it is important to weigh the cost against the potential benefit. This is referred to as return on investment (ROI). A project’s ROI is a major determiner in how to spend your budget for improvements.
Replacing exterior siding is a great way to increase property value. It gives your house a fresh and modern look. New siding also recoups a significant percentage of its investment cost.
Adding livable space to the exterior of your home is one of the hottest trends in real estate. Homebuyers are big fans of sunrooms, oversized composite decks, and wraparound porches.
These are spaces where homeowners can host guests and enjoy the fresh air. They are adding outdoor furniture and stone fireplaces to make it as welcoming as possible.
Property value is naturally driven by your home’s square footage. Any home improvement project that increases square footage is going to increase property value.
Therefore, projects such as finishing the basement or adding an extension are going to be successful. Not only do they add living space, but may also include additional bathrooms and bedrooms.
When Is the Right Time to Increase Property Value?
It is always a great time to increase your property value. For many people, home is their most valuable asset. By constantly improving it, you are investing in your family’s net worth and long-term success.
Projects that add living space are always going to bring value. Improving your home’s appearance is also helpful.
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