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    AI News Releases May 11, 2023

    Potentially Increase Your Home's Value, Appraisal Institute Says

    CHICAGO (May 12, 2023) – The Appraisal Institute, the nation’s largest professional association of real estate appraisers, today encouraged homeowners to focus on easy ways to potentially improve their property’s value.

    “Home remodeling and renovation projects are important and sometimes necessary aspects of homeownership when undertaken properly,” said Appraisal Institute President Craig Steinley, MAI, SRA, AI-GRS, AI-RRS, “With property values rising across the country, some homeowners might be considering investing in renovation projects that are affordable, trendy and can add value to their property." 

    According to a Cinch Home Services survey, "Sixty-two percent of owners say their main motivation for tackling a renovation is to increase their home’s value," REALTOR® Magazine reported. 

    "Homeowners may find it best to hold off on big renovations if they’re unsure how long they will be in their property. The longer a homeowner stays, the greater the opportunity for a potential return on investment. However, regardless of cost, some home improvement projects can be worthwhile simply because they improve the owner’s quality of life," Steinley added. Whether you're considering major renovations or minor updates, a few small renovations can still have one of the biggest impacts on your home's value. 

    1. Boost Your Curb Appeal

    Curb appeal can be a huge factor when selling a home, Steinley said, noting it’s one of the best ways for property owners to make a positive first impression. A home with landscaping or home exterior that is dated or not appropriately maintained could be a major turn-off to prospective buyers and ultimately could have a negative impact on the home’s potential resale value, he said.

    By giving your home exterior a fresh coat of paint, owners can add "an estimated 152% ROI, or about $7,600 in resale value," HomeLight said in Top 9 Renovations to Increase Home Value in 2023. "A new garage door has an estimated ROI of 133%, or about $2,800 in resale value."

    Other ways to boost your home's curb appeal:

    • Basic yard care and landscaping (weed control, fertilization, lawn maintenance, cleaning walkways and driveways)
    • Installing new siding, trim or low-voltage wiring on walkways and driveways 
    • Installing, renovating or updating pools, hot tubs and decks 

    2. Upgrade Your Bathrooms

    According to the "Rated People Home Improvement Trends Report 2023," a new bathroom ranks second as a job which homeowners plan to do in 2023," ThermoSphere said in a recent article. Adding luxury qualities can make daily chores feel like a peaceful, spa-like experience. This includes:

    • Open showers with rainfall shower heads or soaking tubs
    • Double-sink vanities
    • Additional storage space
    • Electric underfloor heating
    • Water-saving features (tap aerators, water saving shower heads, instantaneous hot water systems, etc.)
    • Creative lighting

    3. Bring the Outdoors, Indoors

    This has been a growing trend over the last few years, and is going still strong in 2023. Creating a welcoming, bright environment is important to take into account when wanting to improve your home's value, including:

    • Floor-to-ceiling windows that bring in natural light
    • Physical and mental wellness rooms or qualities (such as soft colors and accents, simple furnishings, neutral colors, etc.)
    • Installing air purifiers 
    • Incorporating indoor greenery (adding a kitchen garden window, incorporating botanical fabrics or wallpapers, etc.)

    4. Sustainability and Energy Efficiency is Top of Mind

    ThermoSphere also noted that "Homeowners are becoming increasingly concerned about the rising cost of energy and are turning to eco home improvements. In fact, over 50% of homeowners said that they want to do it to save money on their bills."

    Other popular trends include:

    • Energy-efficient windows and doors
    • Sustainable building materials (such as bamboo flooring)
    • Solar panel utilization
    • Digital thermostats 

    “In today’s competitive marketplace, professional appraisers provide homeowners with the confidence to make practical remodeling and renovation decisions that likely will be smart choices financially,” Steinley said.

    Learn more about the potential effect of a specific renovation on home values by contacting an appraiser in your area. Search the Appraisal Institute’s Find an Appraiser database.