Can Low Cost Home Updates Add Value to Your Home?

Can you add value to your home simply by doing a few low-cost improvements?

The short answer is, yes.

Some low-cost improvements that add value are:

Faucets and Hardware
Closet and Storage Organizers
Insulation
Replace Soiled or Damaged Carpeting
Interior Paint
Manicure Your Landscaping
New Smoke Detectors
Refinish Hardwood Floors
Paint the Front Door
Remove Dated Window Treatments

Thinking of selling your home? Ensure that home buyers actually notice the home’s features and not the potential work and expense, by taking care of a few home improvement projects before you put your home on the market.

According to The Appraisal Institute, a national association of real estate appraisers, home improvements that are on the whole more cost-effective, tend to be the most worthwhile—in fact, studies show that the highest returns are often on lower-cost renovations.

“The latest research shows that home improvements with a relatively low cost are most likely to generate a positive cost-to-value ratio,” said Jim Amorin, president of The Appraisal Institute, in a statement. “Spending big dollars on major renovations doesn’t necessarily equate to a dollar-for-dollar return. In short, cost doesn’t necessarily equal value.”

No matter the scale of the project, homeowners should take into account their neighborhood before breaking ground, the Institute cautions.

“Projects that move a home well beyond community norms are typically not worth the cost when the owner sells the property,” Amorin said.

Realtor’s Note: In my experience, it is never a good idea to improve or upgrade your property far beyond the value of your neighbor’s homes. The most expensive property in the neighborhood will rarely sell for the owner’s perceived price, or make up for the cost of over-improving. Keep in mind that an appraiser will be acutely aware of the average price per square foot for homes in your neighborhood, and will be unwilling, and in fact unable, to give full value to many expensive upgrades if not in line with the norm. Appraised value will very likely affect sales price.