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How House Upgrades Can Raise The Value Of Your Property

The value of your property is the capitalized (or discounted) present value of all its future net cash flows. This means that it doesn’t matter what you paid for your house, or how much it cost to build, but rather what income it will generate in the future. House upgrades are an important step in maximizing this potential.

Having a house that is in good condition and up-to-date will make your property more attractive to buyers when you sell it. This, in turn, will decrease the amount of time you have to wait before selling, thus increasing its potential market value. See how upgrading your house can increase the value of your property.

What is The Value of Your Property?

The value of your property is the capitalized (or discounted) present value of all its future net cash flows. This means that it doesn’t matter what you paid for your house, or how much it cost to build, but rather what income it will generate in the future. Your house is an asset and, like any other asset, it has value. Your house is considered an ‘immobile’ asset, which means it can’t be moved to generate its value. This is in contrast with a ‘mobile’ asset such as a car or piece of machinery, whose value can be attributed directly to the present.

House upgrades are one way you can increase the future-income potential of your property. If you do not make significant upgrades to your house, when you sell it, buyers won’t be willing to pay as much for it. Your house is only worth what the future income it generates will cost in today’s dollars. Thus if you don’t upgrade it, or take care of necessary maintenance on your house, its value will be less.

How House Upgrades Can Increase the Value of Your Property

House upgrades can not only increase the value of your property but also provide you with more living space and added amenities. Whether it’s a new kitchen, bathroom, air conditioning system, or driveway; house upgrades do improve comfort and add great value to any home. Depending on the size and type of upgrade; some projects can add up to 20% (or even more) in increased property value.

House upgrades vary in price and the amount of time they will take to complete. Some projects, such as a new driveway or landscaping can be completed in a weekend; while others like an entire kitchen renovation may take months and require your full attention (such as managing work schedules). It is important to look at each project on a case-by-case basis when determining the value of a potential upgrade.

Upgrades Make The House More Attractive

This is key for house hunters who are looking to sell their homes; where the upgrades make the home more attractive. When potential buyers drive by your property, they will typically see new roofs, siding, paint jobs, and door/window replacements as major selling points since these projects come along with a new property.

Many upgrades can be completed within a few weeks and add a lot of value to a house in a short amount of time. A new front door can increase property value by up to 10%; while the addition of a deck or sunroom may add anywhere from 5-15% more to your bottom line.

Attractiveness Brings Clients

It is important to note that the more appealing your house looks; the more clients you will attract. Potential buyers will be drawn to a home that is well-maintained and updated (rather than one that remains untouched).

Many homeowners choose not to complete upgrades because they believe it will take too much time or effort; but in reality, most projects can be completed within a weekend or two. You may need to spend some time looking for the best deals and choosing the specifications you want; but overall, house upgrades are usually quick and easy projects.

What Can I Do to Increase My Home’s Value?

There are several house upgrades that can add great value to your property:

New kitchen appliances and fixtures: A new modern kitchen will never go out of style and always adds value. Energy-efficient appliances, such as a propane stove and a tankless water heater, can save you in the long run.

New bathroom fixtures: Bathroom upgrades can include new flooring, showers, sinks, toilets, and faucets. Changing the style of your fixtures from traditional to modern instantly adds value to any home.

Adding an outdoor living area: An outdoor kitchen, more deck space, and/or an outdoor living area can increase home value. A new driveway or landscaping is also a great way to increase the overall value of your property.

New Windows: If you are looking to sell your home in the near future; new energy-efficient windows are always a good investment.

It is important to note that there are many factors influencing the value of a property. But one thing you can do as soon as possible upgrades your house for an instant return on investment and increase in property values. We hope this blog post has helped you understand how upgrades can affect not just aesthetics but also finance by increasing the worthiness of properties.

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