Home Improvement and Home Equity

Home Improvement and Home Equity

When homeowners weigh options for home improvements, they usually do so to improve the look of their property. This is all well and good. After all, it certainly never hurts to have a home that is the best looking on the block. What many do not realize, however, is that looks alone are not the only benefit home improvement provides. When a home’s appearance is improved, the equity of the home can also be positively impacted. In other words, home improvement work can actually increase the value of a home. And, yes, this increase in value can sometimes be significant.

Imagine two homes on the same block. There are both identical in many respects. However, there is one dramatic difference between the two of them. One property has a beautiful, newly built deck in the backyard. The other property’s backyard is nice, but it does not have the stunning addition that the other property has. This in turn, makes the property with the addition more valuable.

Anything that can make a home different than other homes in the neighborhood is a net positive as far as increasing equity. Installing new windows, adding a new room to the home, having the house re-sided can all work towards making the home look better and possessing more value. Again, anything that can make your home stand out from the crowd of other homes in the neighborhood has the potential to increase equity. That is why exploring home improvement options should never be overlooked.

Also, home improvements do not have to be exclusively performed on the exterior of a home. One of the most common – and most popular – home improvement plans is remodeling the kitchen. Some may wonder how a remodeled kitchen can improve the value of a home. It does so because a newly refurnished kitchen provides an improved look to the interior. Of course, an owner does not have to be limited to the kitchen. Remodeling the bathroom(s), living room, and even the basement can all have a similar effect.

When a kitchen possesses a unique, modern, or refurbished look other homes lack then a home will stand out from the proverbial crowd. This provides the home with additional value that can increase the equity of the home rather effectively. In many instances, such work can often be performed inexpensively if you select the right contractor. And, of course, the remodeling work performed has the potential to pay for itself if the equity in the home increases significantly.

4 comments

  • Kim January 31, 2009 at 03:28 AM Login to Reply →

    I spent much of my adult life remodeling and am in the process of remodeling my home once again. Great way to add value to your home.

  • Picture Windows February 3, 2009 at 18:32 PM Login to Reply →

    I agree with Kim, it is such a great way to add value to your home!

    I just recently added some picture windows to my front room and I’m in love!

    Not only do they look good, I have been getting so many compliments!

  • Builders Glasgow October 5, 2009 at 13:20 PM Login to Reply →

    Yes, it adds a value to the one with the addition, but would it not also look worse because of the second property? The way your neighbours home look like affect the visual aspect of your propery.

  • steam shower April 7, 2011 at 12:07 PM Login to Reply →

    Without doubt adding home improvements can improve the value of your home. Even if you do not have a large budget simple touches such as painting soft colours, enticing pictures can make such a difference.