A house is the largest purchase most people make in a lifetime. You feel comfortable borrowing hundreds of thousands of dollars toward the purchase of a home because you know it’s value will appreciate.
But how much should your home increase in value and by when? If you’re asking yourself ‘what is the value of my home,’ take a look at this overview on how to predict your home’s value and increase it.
What is the Value of My Home?
Knowing the value of your home puts you in a position of power when it comes to things like refinancing and selling. But the value isn’t a fixed number.
Each year, your home appreciates or goes up in value by a certain percentage. The average home appreciation rate is around 3 percent per year.
This percentage might be a lot higher or a lot lower depending on your housing market. The average takes into account both poor markets and really successful real estate markets.
Real Estate Comps
One of the best ways to estimate the value of your home is by using real estate comps. A comp is a recently sold home in your neighborhood that’s similar in size, condition, and features.
Use nearby comps to predict the current value of your home. In a seller’s market, you might be able to get more than recent comps because inventory is low.
Supply and demand is a major factor when it comes to how much buyers are willing to pay for a home. When housing is scarce, they’ll be more likely to pay more than comp prices for a home.
Increasing the Value of Your Home
There isn’t much you can do to influence the sales price of your neighbor’s home. But you can make your home more appealing to potential buyers by adding certain features to its design.
Here are a few home improvement tips to increase its value.
Buyers love the sleek feel of stainless steel. Ditch the colored appliances for this simple upgrade idea that requires little to no remodeling. Use heavy duty caster wheels under a movable kitchen island to create easily mobility around the room.
Repaint the Walls
It might sound overly simple, but a fresh coat of paint on the walls can brighten the look of an entire room. If you’re working within tight budget constraints, repaint one room at a time in a neutral color.
Upgrade Your Yard
Yes, curb appeal counts. A buyer’s first impression of your home might be a lasting one.
Hire someone to remove weeds and shape up the hedges on your property. Look for opportunities to plant colorful flowers or plants near your front door.
How Much Can I Increase the Value of My Home?
What is the value of my home? The answer to this question bears no simple answer.
Even using comps, your realtor might have additional suggestions to bring your property up to par when preparing to sell. Consult with an agent to learn the options to increase the value of your home based on what buyers want in your market.
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