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Upgrading To Increase Home Value – What To Consider

Sammamish Mortgage
Published:
March 20, 2015
Last updated:
February 26, 2021
upgrades
In This Article

Summary: Certain home improvements can add to a house’s appeal and boost your resale value. So, if you have been thinking about making some upgrades,  make sure you check these must-haves off the list.

In This Article:

  • How Can Certain Upgrades Increase My Home’s Value?
  • What Top Renovations Should A Homeowner Make Regardless Of When They Plan To Sell?
  • Are Smart Home Features A Must?
  • What Is The Best Way To Pay For These Improvements?

If you are a homeowner, you should always be thinking about ways that you can boost the resale value of your home. Whether you are planning on putting the home on the market or simply want to be prepared for the future, there are upgrades that can make your property more desirable. Give your home the attention it deserves, and you will be prepared for whatever may come down the line.

Go Solar With A Home Solar Installation

There is no doubt that solar power is big in today’s housing market. It is an excellent resource that will save you money on your utility bills. You could even find yourself in a situation where the power company is actually buying energy from you. It is also a move that is environmentally-friendly. If you feel a responsibility to the world around you, you will have the peace of mind that comes with reducing your carbon footprint. As energy becomes scarce, solar power is something you can count on. Future buyers will benefit as well.

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Install An HVAC System That Does It All

When it comes to your heating and cooling, install a system that will meet all of your needs. Keep your home at a comfortable temperature throughout the year at the touch of a button. Choose an energy saver model that uses the most feasible type of energy source in order to trim costs. When you have a modern system with automation capability, you should see a difference in your utility bills. You will also have a huge selling feature to show off when prospective buyers come knocking at your door.

Make the Most of Your Existing Space

Take the space that you have and make sure that you utilize it to its full potential. Whether you create an attic bedroom or a finished basement, making better use of your space will increase your home’s appeal. When it is time to sell, buyers want to see possibilities and appreciate it more when the work has already been done for them. Give them options and let them make the space their own.

Consider Smart Home Features

Smart home features make our homes more convenient, more enjoyable and can also add some serious value to your home. There are so many different smart devices available that provide different benefits—so choose wisely.  A few features you should consider include smart lighting, media, heating, and security systems, as they are much sought after features in modern homes. Plus, smart home features enable incredible levels of interaction between home and owner.

Paying for Improvements

When you are looking to increase your home’s value, you need to be realistic. Though the above mentioned upgrades are sure to make a world of difference, updates rarely recoup 100% of their cost. This is even in spite of the fact that upgrades can make your family more comfortable and help your home sell faster. So, how can you afford these improvements, or rather what is the best way to go about paying for any home renovations? Well, if you cannot pay for home improvements in cash, there is no need to panic as long as you choose the right method of financing for you.

For instance,  putting your home renovations on a credit card is fine if you are able to pay off the entire balance in a short amount of time. Typically, many homeowners look to a home equity loan or HELOC, or even a personal loan. Note, a personal loan comes in handy if you do not have enough equity. That said, the interest rate will more than likely be higher than home-equity-based financing but lower than a credit card in most cases.

On the other hand, a home equity loan or line of credit, if available to you, is a great way to turn your home’s equity into easily accessible funds. Home equity loans payout in a lump sum, while home equity lines of credit, or HELOCs, are a line of financing you can borrow against over time. Both home equity loans and HELOCs have interest rates, fees, monthly payments, and tax advantages to consider.

Last but not least, if you do not want to tap into your home’s equity or secure a second mortgage, then you can also consider cash-out refinance. This is a popular refinance option, especially when it comes to home improvements and repairs. However, it is important to keep in mind that a cash-out refinance does not make a whole lot of sense if your equity is limited or current cash-out mortgage rates are higher than your existing rate.

Turn to the Experts for Advice

Ultimately, home renovations and how to best pay for them can be a lot to consider on your own. The good news is that you can call your mortgage professional to assist you with questions and solutions when considering an upgrade to your home. You will be able to tap into a vast store of knowledge about what works and what does not before investing in any upgrades.

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Ready to Apply For a Mortgage in WA, OR, CO, or ID?

Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.

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