If you are like the majority of American homeowners, and believe your home is your most valuable asset, maintaining it in good shape is probably a top priority. The good news is, keeping up with repairs and making smart improvements are both demonstrated ways to add value to your home.
Some home upgrades increase a home’s value, but not all do. According to Remodeling’s 2020 Cost vs Value Report , in California and Florida, home upgrades like siding replacement, window and door replacement, and roof replacement generally retain at least 64 percent, or 64 cents, for each dollar spent of their value compared to other upgrades.
Whether you want to build your home’s equity or get top dollar when you sell, the tips below may help increase the value of your home.
1. Make it energy-efficient
Consider replacing old windows with double-paned windows, upgrading the heating, ventilation, and air conditioner (HVAC) system, installing an enhanced attic insulation, LED lighting, and energy-efficient appliances as a way to increase home value and save in energy consumption.
If you’re willing to invest more, consider installing solar panels on the roof. The National Association of Realtors found in a recent survey that 36-percent of realtors said solar panels increased perceived property value. If you are looking for a quick boost in resale value, installing solar panels is not advisable as it is a big financial and structural commitment.
Installing solar panels makes sense if you’re hoping to increase the value of your home over the long term as the average national solar payback or “break-even” period is just above 8 years. In other words, if the cost of installing solar is $20,000 and your system is going to save you $2,500 a year compared to prior energy bills, your solar panel payback will be 8 years ($20,000/$2,500 = 8).
2. Make it low-maintenance
Replacing a major component in your home — like the water heater, furnace, low maintenance landscaping, or even the roof — may help get you a higher price. Improvements that make things easy to clean and maintain may also increase home value. Consider replacing high-maintenance wood siding with vinyl siding and old windows.
Window frames require the most maintenance and have the most potential to fail, especially if their exteriors are painted wood and not clad in vinyl, aluminum, or fiberglass. In addition to the various frame materials in windows, on higher-end units, there are also options for different configurations of insulated glass to make your windows virtually maintenance-free.
3. Make it smarter
According to Consumer Reports, home automation can increase a home’s value by up to 5%; this would be $15,000 on a $300,000 house. Smart homes are gaining popularity among all demographics; younger homeowners prioritize convenience and ease of living, while older homeowners value security features.
Smart homes are also becoming more and more money smart. Consumers save an average of 10 to 12 percent on heating and 15 percent on cooling, according to a Nest study. Smart lighting can also increase the energy efficiency of a home and help reduce costs. Americans with smart home appliances agree they save money: 45 percent reported that they save an average of $1,100 per year through climate automation alone in the home.
How to Pay For Home Upgrades that Add Value
As you consider the ways to upgrade your home and evaluate your return on investment (ROI) in the short or long run, root your expectations in reality. Upgrades rarely recoup 100 percent of their cost, but they can make your family more comfortable, your home safer, and even help your home sell faster.
If you can’t pay for your home upgrades in cash, evaluate various financing methods available to you and be sure to choose the right one for your needs.
PACE financing is available for a large array of products and projects including:
- Appliances
- Heating, Ventilation, and Air Conditioner (HVAC)
- Windows and Doors
- Roofing
- Solar Panels
- Siding
- Lighting
- Insulation
- Earthquake Retrofit
- Hurricane Protection
- Landscaping and Turf
- And much more
Applying for PACE financing takes less than 5 minutes and you could be approved the same day.
Click HERE or call us at 844-736-3934 to get started!
Important Disclosures
PACE financing is subject to credit approval. Underwriting requirements and restrictions apply. PACE financing is secured by a lien on the subject property and may be required to be repaid upon refinance or sale. Homeowners should perform due diligence before selecting a home improvement contractor. PACE financing is private financing that must be repaid in full. PACE financing is not a government subsidy. Homeowners are encouraged to use PACE financing responsibly. Names or trademarks used above are the property of their responsive owners.
