The 3 best summer renovations to raise your home value
With the weather starting to get warmer, you may be thinking about ways to spruce up your home to enjoy the summer. Sometimes that means making relatively small changes, like getting a new barbecue grill. Other times, you want to make bigger modifications, particularly those that have the potential to raise your home's value.
In some cases, homeowners find that borrowing against their home equity, such as by taking out a home equity loan or opening a home equity line of credit (HELOC), can help them pay for summer renovations. Still, you don't want to tap into your home equity without considering the full picture, such as how interest rates can affect the total project costs. But when used wisely, this borrowing can pay off.
"Have a concrete plan on how to pay it back to zero. This could save you money by completing projects now, instead of years later, when inflation could dramatically increase the cost of a given project," says Jay Garvens, a real estate investor and business development manager at Churchill Mortgage.
Also, consider how the best summer home renovations in terms of maximizing your return on investment (ROI) depend on factors such as where you live.
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The 3 best summer renovations to raise your home value
"When considering a home renovation, the best way to determine its ROI is by researching the local trends in the area. Understanding which features are the most appealing to potential buyers will help prioritize the investment," says Philip Consalvo, Principal, PJCArchitecture.
In general, though, the experts we spoke to suggested the following three areas of summer renovations that can help raise your home's value:
Landscaping
Doing landscaping-related work can be one of the best summer home improvements to make. Sometimes this involves small projects like planting new flowers, but it can also be more comprehensive projects like yard excavation to create a more usable outdoor space or a more attractive front yard.
"In most cases, renovating the outdoor features most visible from the street may enhance curb appeal and attract potential buyers," says Consalvo.
For example, he says working on landscaping and adding outdoor lighting are some of the most effective ways to increase your home value.
In terms of raising your home's value, standard lawn care service has an ROI of 217%, according to a report by the National Association of Realtors and the National Association of Landscape Professionals. Landscape maintenance has an ROI of 104%, while an overall landscape upgrade provides a 100% cost recovery.
In other words, while you might not always net a profit from home upgrades like landscaping, you might be able to get your money back on average, and meanwhile, you get to enjoy having a nicer yard.
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Doors, windows and siding
Landscaping isn't the only type of exterior work that can help boost your home's value. Other types of summer home renovations, like replacing your siding, front door and/or windows, are also some of the best ways to increase how much your home is worth, says Consalvo.
Garvens agrees with the value that exterior upgrades can bring.
"Exterior improvements generally provide the highest ROI, especially when you focus on the front door and garage door. Adding faux stone and siding to a house are also likely to provide an immediate and meaningful return. All of these outside changes provide a boost to a home's value, mostly because they are tied directly to first impressions," Garvens says.
Outdoor living areas
Other home renovations for summer to consider include those that upgrade your outdoor living areas, not just for curb appeal but for general enjoyment.
"For summer homes, adding or extending a deck or patio expands the usable living space to the exterior, which can be a major selling point," says Consalvo.
"Also, adding an outdoor kitchen or BBQ area may be highly desirable to homeowners. Outdoor cooking and sitting areas are becoming more popular, especially in warmer months, and can add significant value to a property," he adds.
But watch out and don't go overboard. It's easy to spend a lot of money on luxury upgrades and not always get a good ROI, especially if the home improvements are more specific to your own taste.
For example, Garvens says he's seen some changes that can reduce a home's value, like "having an extremely large gourmet kitchen deck put off the outside of the house."
Because summer home repairs and home renovations can sometimes be tricky to determine what helps your own enjoyability vs. what adds value to your home, don't feel like you have to go at this decision alone.
"You can also seek other professional opinions, like experienced real estate agents, investors, and appraisers. These professionals would have knowledge of what adds value to a house and help steer you away from pitfalls," says Garvens.
The bottom line
Making home improvements can sometimes raise home values, such as ones that boost curb appeal, but it's important to consider factors such as your local area and your ability to afford this work. Taking out a home equity loan or HELOC can sometimes help when it comes to paying for summer home renovations, as well as other projects like interior repairs, but you want to be sure you can afford to pay back the financing.
