Buying a home is the single greatest expense the average American will incur during their lifetime. Since such a large amount of capital goes into purchasing a home, most people consider it an investment.
As a homeowner, this means that you are betting on your house increasing in value over time. In recent years, houses across the United States have benefitted from rapid appreciation. In 2020 alone, Zillow reports that homes in Marin County increased by 9.8%.
Although real estate is booming, there is always a chance that prices may decline during a recession. One way to protect yourself against this is to force appreciation by updating your house. This article explores tried and true updates that are proven to increase the value of your home.
Paint
Paint can have an incredible effect on the overall appearance of your house. When a potential buyer walks into a room, the first thing that stands out tends to be its color. Having the proper aesthetics can transform your house and increase its value.
When it comes to adding value to your home, a can of paint goes a long way. In fact, a single can of paint has the potential to increase your home’s value by $6,000. According to Zillow’s paint color analysis, homes with a black or charcoal front door on average sell for a higher price. With that in mind, imagine what a coat of paint can do to increase the value of other parts of your house.
Perhaps the best part is that paint is relatively inexpensive. Although the cost of a can of paint varies, on average it sells for anywhere between $15 and $40 per gallon. This boasts a very high return on investment and is something all homeowners need to consider, especially if you plan on selling your house in the near future.
The key to repainting a house is to focus on finding the right color scheme. In general, it is highly advised that you select neutral colors when repainting. This appeals to the widest range of potential buyers, is easier to match, and tends to brighten up the room. Neutral colors will help you sell your home faster, minimizing holding costs while maximizing value.
Due to its versatile nature, paint can be used on just about anything. Here are some suggestions for painting your house:
- Entire Rooms
- Kitchen Cabinets
- Spindles and Railings
- Doors
- Window Sills
- Baseboards
To make a good impression, it’s important to give people something aesthetically pleasing to look at. Painting your home will increase your home value with minimal money out of pocket.
Flooring Considerations
The type of flooring in your house can have a significant impact on its resale value. Like paint colors, certain floors offer higher returns on investment than others. Homeowners have a variety of flooring options to explore ranging from carpet to hardwood floors. Fortunately, this manageable upgrade can be exceptionally cost-effective.
1. Carpet
Carpet is an affordable and common floor that can be found in homes across the country. Those who advocate for carpet cite its low cost to replace and the fact that it’s good for families with children. However, you need to think twice before opting for a carpet.
Potential homebuyers are likely to question the cleanliness of carpets. The biggest consideration with carpet is that it absorbs pretty much anything. This means the carpet will take on damage from spills, like juice from kids, or stains from pets which serves as a major deterrent to many buyers. It also holds dander and allergens, which can steer many people away. These factors make carpets a very low ( 25%-40%) return on investment in comparison to other flooring options.
2. Tile
Unlike the other flooring options mentioned, tile is less versatile. For the most part, tile can be found in kitchens and bathrooms. It should not be a consideration in other areas of the home.
Although it has specialized uses, tile is still an excellent flooring option for certain rooms. Tile gives rooms a clean appearance and is relatively easy to clean if it does get dirty. Moisture resistance also makes it a great option for rooms where water can be found–hence the emphasis on kitchens and bathrooms.
3. Hardwood
Hardwood floors are a timeless classic that many homebuyers covet. With glistening new hardwoods, your home is likely to sell faster. Such high demand for hardwood flooring across the country has led the National Association of Homebuilders to call it one of the biggest “must haves” in homes.
As you begin upgrading your flooring, there are many reasons to consider hardwood floors. One benefit is that hardwood can be placed throughout the house, making it quite versatile. It also comes in a wide range of colors and wood varieties, so options abound. If you already have hardwood floors, you can re-sand and refinish them for a fraction of the price of installing new floors. This still has the same allure to homebuyers.
A potential downside to hardwood flooring is the price point. Although they are costly, CNN reported that having this type of flooring can increase your home’s value by 3%-5%. When considering the fact that homes can sell for 6 figures or more, this is very significant.
4. Laminate
Most people have seen laminate flooring without realizing it at all. This is because the most popular kind of laminate is often stylized to look like hardwood flooring. If you want the look of hardwood floors for a fraction of the price, you need to consider laminate flooring.
Two major advantages to laminate flooring are the price and ease of installment. You’ll notice that there are dozens of options and ranges in price. The price ranges from $2 to $6 per square foot, which in some instances is half the cost of hardwood floors. If you want to save money, you can install it yourself and get an even higher ROI.
There are many considerations to weigh before determining the flooring type that meets your needs. Each type of flooring has potential pros and cons. Depending on the room or area of the house, one option might be better than another. Be sure to analyze these options before choosing how to upgrade your house.
Final Thoughts
In-home ownership, there’s always a project to do or an upgrade to make. Before you begin your next endeavor, be sure to revisit your paint and flooring options.
