You would probably assume that a real estate’s value would always go high with time, even if there were a few market variations along the way. Yes, it is an appreciating investment, unlike buying a car. However, it is not entirely true, and there are numerous reasons why your home value can go down even when real estate is on the rise. The main reason is the age of the structure. An old and outdated home could hurt your listing value. Are you shocked to see your home value in Zestimate? Here is how you can increase your home value.
Zestimate considers the beauty of your home
Yes, the real estate market is too shallow and primarily depends on outward beauty. Your hardwood floors, landscaped backyard, granite countertops, and every other aesthetic factor would have a positive effect on the Zestimate value. The most common rooms to invest in aesthetic and unique factors are the living room and kitchen. According to recent studies, the cost of remodeling the kitchen would have 80% returns in terms of an increase in home value. For instance, if you spend $23,000 in remodeling your kitchens like updating your appliances, flooring, sinks, countertops, and others, it would increase your home value by $18,000.
Zestimate counts the number of usable rooms
Do you have a dilemma between adding a den and a bedroom? If you wish to increase your home value in Zestimate, always go for the bedroom with an attached bathroom, if possible. Among the variables taken for calculating the home value, the number of usable rooms and the number of bathrooms is important.
The usable square feet inside the home become a valuable factor. The price of the home, on average, is $130 per sq feet. Break down a few walls and add more space to your room. However, remember that if you plan to resell it immediately, a major home renovation would not be a wise choice. The cost of a major renovation would be higher than the increase in the resale value. For instance, adding a bathroom would need nearly $48,000, but it would increase $29,000 to your home value.
Show Zestimate that your home is different
Your home value depends on the neighbors’ home too. How advantageous is your home than the ones around you? The best way to add this differentiating factor is by making it energy efficient. The buyer should feel that he would be saving money by choosing your home over others in the long run. Zestimate and 70% of rest estate experts say that making your home energy efficient would add value to your listing. Top ways to improve your home’s energy efficiency are energy-efficient lighting and appliances, solar panels, new and efficient windows and doors, and any landscaping changes that would decrease the utility bill. Changing ten windows in your home with vinyl windows would cost you $17,000. It would add $12,000 to your home estimate, and you will be saving money along the way on your bills.
Updating your appliances would also make your home energy efficient. A decade-old heating system is prone to add more to your utility bill. If you plan to make landscaping changes, remember that it is not efficient if you are planning to sell it immediately. A mid-range asphalt shingles installation would cost $22,000, and it would boost your home value by $15,000. It amounts to 68% of the investment.
Safety matters to your listing value
The neighborhood factor is very important. If your home is in a safe neighborhood, it will boost your Zestimate value. However, there is no plausible way to increase the safety of your neighborhood as an individual. However, you can always increase the safety of your house with a smart gadget. The top ways to increase safety are smart lock, smart camera, smart fire detectors, etc. Such modern devices would attract young buyers.
How to pay for these renovations?
It would be a grave mistake to take a second mortgage to pay for these renovations. Remember that most of the home projects do not give 100% ROI immediately. So, it is best to avoid credit cards, loans, and other methods of borrowing. It is best to save money and use it on the home project. It might sound like a stretch, but you need not re-do your entire house in the same month. Create a plan and start with small changes. Are you planning to make your home energy efficient? Start with replacing windows. Later, save enough money and plan to buy new appliances.
Your realtor might tweak your interest, saying that renovations could increase the value of your home. Yes, it would; but, how much would it add to the value? It is best to hire a reliable realtor who understands how to increase your home value and whether it is the right time to sell your property.
Is it wise to believe these home estimator tools?
Every month, millions of people use Zestimate. Although it is not a proof document, it allows homeowners to get an overview and make informed decisions. Moreover, it will help you choose the right renovation method. Some renovations might be too insignificant and would not change the value of your home, but might cost a huge chunk of your bank account. Thus, these tools stand as a part of your decision-making skills. If you are looking for a professional opinion, hire a realtor to understand your home’s value. However, these online tools are easier to use and free.
Buying a house or selling one is a large move, no matter how rich you are. Thus, it is important to take caution while making every move. Thus, using estimator tools is a good precautionary plan to avoid any stupid costly mistakes. It could help you understand how much loan you can look forward to, but it is not professional proof. You need to hire a professional appraiser for the same.