Smart Tips to Increase the Value of Your Home and Commercial Real Estate
According to a 2019 survey conducted by The Nerd Wallet, almost two-thirds of homeowners in the U.S. believe that the value of their homes will continue rising over the next ten years.
This shows just how much demand real estate has. In fact, real estate – whether residential or commercial – is one of the best investments that you could ever make. People are always going to need properties, and you can be assured that homebuyers and commercial real estate buyers are always on the lookout to get their hands on the best deals in the market.
While there are many external factors such as the location and the health of the market that are out of your control, there are also some factors that are in your hands. One of these is the condition of your property and its physical appeal.
An attractive and modern property that is well-maintained with plenty of amenities will have a higher market value than one that is old, squeaky, and poorly-maintained. Many home sellers choose to renovate their properties before they make it available on the market. This can help them raise their selling price significantly.
So, if you are looking to liquidate your real estate too and want to bring in the highest possible numbers, you may want to focus on increasing the market value using these tips below.
Tips to increase the market value of homes
If you want to put your home out in the market or sell it through a real estate auction, here are some practical tips that can help you increase its value significantly. Many home sellers have seen these effective tips yield great results for them, so you can be confident that these are tried and tested ways of bringing in more money through real estate.
- Increase your curb appeal
One of the easiest ways to increase the market value of your home is to increase its curb appeal. This is basically how your home appears from the outside and includes renovations to your porch, your lawn, garden, and driveway. To attract home buyers, your home must look welcoming and attractive, while being structurally sound at first glance.
While something as simple as repainting your front door or keeping your lawn clean and well-maintained can make a huge difference, bigger changes such as planting more flowers or redoing your driveway or walkway can bring about even more benefits. The key is to accentuate the positives and do away with the negatives.
A simple but effective trick is to take a picture of your home in black and white. This way, color is removed, and you get to see the tiny flaws that you may have missed, such as cracks in the wall, or which part of the front yard needs more attention.
It is also important that your neighbors pay attention to the appearance of your neighborhood. If your house is located in a poorly-maintained street and you have neighbors who don’t care for their homes, it can affect the desirability of your real estate.
- Consider kitchen and bathroom remodels
Your kitchen and your bathroom are the two rooms in your house that homebuyers will pay the most attention too. Any real estate auction expert knows that renovations to these two rooms yield the most returns.
Even something as simple as repainting your kitchen or changing the cabinet handles can make a huge difference in increasing its appeal. But if you want to go for a full remodeling project, that’s even better. Adding a new backsplash, a kitchen island, upgrading your appliances, changing the flooring and ceiling, renovating the cabinets, and so on are some of the common renovations you can undertake. You’d be surprised how much better your home looks.
When it comes to your bathroom, it’s important that it not only looks good but is also functional and practical. Today, bathrooms are not just utilitarian, as homebuyers want to feel relaxed and rejuvenated when they are in the bathroom. It offers people valuable alone time where they get to refresh their bodies and minds.
Heated floors, tubs, and spacious shower areas, large mirrors and great lighting, marble/granite countertops with plenty of storage, adequate ventilation – these are just some of the bathroom renovations that can help home sellers increase the value of their homes.
- Make your home energy-efficient
Today, an increasing number of people are going for homes that are energy-efficient as environmental concerns continue to grow. By installing energy conservation features in your home, you can significantly increase its value and attract more people. If your home is located somewhere that experiences extreme weather, these features will come in extremely handy.
Make your house more energy-efficient by installing LED lighting, double-paned windows, enhanced attic insulation, energy-efficient appliances, and so on. Apart from increasing your home value, these can help save on utility bills as well!
- Make more space in your home
Adding more square footage to your home is one of the best ways to increase its market value. It’s simple – bigger homes sell for more money. Maybe you can knock off some walls and adopt an open floor plan in your living area and kitchen. Maybe you can convert your garage, basement, or attic into attractive living spaces.
Maybe you can add another bathroom and make things much easier for everyone. Or maybe, if you have enough space in your property, you can simply add another room or expand the existing rooms. If you have a huge property, such as a farm real estate, the possibilities are endless.
There are plenty of ways to increase real estate value by adding more space in your home, and homebuyers will notice and appreciate all the extra space.
- Update all systems and appliances
Your home probably has plenty of systems and appliances, including the HVAC system, your kitchen appliances such as the fridge, stove, oven, washer, and dryer, as well as bathroom appliances. If you want to sell your house for a good price, you need to ensure that all these systems and appliances are up-to-date.
Not only do updated systems and appliances make your house look much more aesthetically appealing, but they also make it much easier to maintain. This way, you can assure interested homebuyers that they do not have to worry about any home maintenance issues. They don’t have to worry about emergency repairs and replacements in the near future since all systems and appliances will be as good as new.
- Make your home a smart home
As we rely more and more on technology, smart homes that come with smart devices, systems, and gadgets are becoming increasingly popular. A home with a smart security system, smart lighting system, smart carbon monoxide detectors, or smart thermostat can bring in more money for home sellers.
Not only do these technologies make living easier, but they also make the home much safer and more secure. The best part is that these devices are very easy to install, and you can even do it yourself without having to call professionals and paying them. All you have to do is hit the electric store, and you can fix them up on your own.
- Hire the services of a certified home inspector
A home inspector is like a doctor for your house who knows where to check for the most common and critical issues that many homes face. If you want to sell your home, then hiring the services of a certified home inspector can be a huge help. They will check the HVAC system, electrical systems, interior plumbing, windows and doors, the foundation of your house and its structural components, and more.
Tips to increase the market value of a commercial real estate
If you are looking to sell commercial real estate, there are several actions that can help you increase its market value. First, it’s important to know that the value of a commercial real estate is mostly driven by the cash flow it generates, which means that before you put your property out in the market, you need to take steps to increase the cash flow and decrease expenses.
That said, there are also other ways to increase the market value of commercial real estate. Let us look at the steps you can take that will work best in your financial interest.
- Improve the appearance of your property
Any commercial building, such as office buildings, industrial buildings, and shopping centers, can benefit greatly from making improvements to their appearances. Not only will this allow you to increase rent, but it can also make your property more aesthetically appealing and attractive to potential buyers.
Whether you are simply repainting or improving the lobby, or whether you are going for bigger, more substantial cosmetic enhancements, you can be confident that you will see the impact on its value.
- Enhance the security
When it comes to commercial properties that receive plenty of footfall, such as office buildings and shopping malls, any real estate auction expert can tell you that enhancing security is a great idea.
Maybe you want to equip your security guards with the latest gadgets, or maybe you are planning to bring in smart security systems that allow only authorized personnel entry to certain parts of the building. Whatever measures you decide to take, enhanced security that ensures the safety of the building and the people inside it will make your property more attractive to interested buyers.
- Add amenities that can add value
Amenities such as a spa, fitness center, a fun/game room, a fully-equipped business center complete with the latest devices and systems, a conference room, a pool, or concierge services can help increase the value of your commercial real estate.
You can also think about adding income-producing areas and amenities, such as renting your common areas for events like art shows and car shows or adding a gym that provides membership benefits.
- Adopt energy-efficient systems
Just like residential real estate, commercial properties can also benefit greatly by becoming more energy efficient. A great idea is to install solar panels on your roof so that you can save on energy bills, not to mention that you are helping the environment by conserving precious energy.
Other smaller changes, such as switching to LED lighting, using double-paned windows, and installing smart systems, can help increase the value of your commercial real estate as well.
- Change the usage of the property
Today, neighborhoods are constantly evolving, and this can work to the advantage of home sellers and those looking to sell commercial real estate. For example, what was once an art center could turn into a booming IT hotspot, or an industrial area could become filled with retail stores.
If the neighborhood in which your property is located is also turning into something other than what it was zoned for originally, you should consider getting a zoning variance so that your commercial property can keep up too. This allows you to convert your property into something that will bring in more cash flow.
- Increase rent and cut down on operating expenses
A simple and effective way to increase the value of your commercial real estate is to increase the rent. However, you have to ensure that the rent is worth the property and that tenants are paying a reasonable amount. If you are increasing rent, you should also consider making improvements first so that the increase is justified.
By decreasing operating expenses, you can increase the cash flow of your building. Carefully analyze the historical operating statements of your property to see if there are any areas where you can cut down your expenses. The key is to find ways to cut down your operational expenses without leaving a significant impact on the operations of your real estate itself.
For anyone planning to sell their real estate, these tips will help you increase the value of your home or commercial real estate so that you can bring in more money.