Adding Value To New Home Purchase

This guide covers adding value to new home purchase. A home is one’s single biggest investment. By owning a home, a homeowner can enjoy and use their investment. Real estate is considered one of the safest investments an investor can make. Homes have appreciated substantially over the past few years. Many areas had over double-digit appreciation since 2012.

Demand is expected to increase throughout 2024-2025. With the recent news, everyone is expecting the FEDs to lower interest rates. Demand for homes is expected to remain strong depsite soaring inflation, high home values, and record high rates.

Since 2018 with rising interest rates, homes have appreciated nationwide. There is more demand for homes today than supply Many experts believe that home prices will increase in the next few years. In this blog, we will discuss Adding Value To New Home Purchase. There are ways of adding value to new home purchase without spending a lot of money.

Adding Value To New Home Purchase By Updating Home

Adding value to a new home purchase involves strategic enhancements that can increase both its market value and your enjoyment. Here are some effective ways to do so. Focus on high-return areas like kitchens and bathrooms. Modernizing these spaces can significantly boost your home’s value. Upgrading to energy-efficient windows, insulation, and HVAC systems can reduce utility bills and attract energy-conscious buyers. Enhancing the exterior of your home through landscaping, a new front door, or fresh paint can make a strong first impression. There are several ways to add value to a new home purchase, increasing the property’s worth and providing a better return on investment in the long run. In the following paragraphs, we will cover some strategies to consider adding value to new home purchase. Speak With Our Loan Officer about loan for updating home

Renovations and Ugrades

Kitchen remodeling: Updating cabinets, countertops, appliances, and fixtures can increase a home’s appeal and value. Bathroom renovations: Like kitchens, modernizing bathrooms with new fixtures, tiles, and finishes can add substantial value. Flooring upgrades: Replacing outdated or worn flooring with hardwood, luxury vinyl, or tile can instantly refresh a home’s look and increase its value.

Energy-Efficient Improvements

Installing energy-efficient windows, doors, and insulation can reduce utility costs and make the home more attractive to environmentally conscious buyers. Upgrading energy-efficient appliances and HVAC systems can add value while reducing ongoing costs. Solar panels or other renewable energy sources can be a significant value-add in some markets.

Accessory Dwelling Units (ADUs)

Adding an ADU (e.g., a guest house, in-law suite, or apartment over the garage) can provide additional rental income potential and increase the property’s value in areas that allow them. It’s important to research local real estate trends and consult with professionals (e.g., contractors, real estate agents) to determine which improvements will yield the highest return on investment in your specific market. Additionally, consider the costs of renovations and factor in the potential increase in property taxes after making significant improvements.

Smart Home Features Adding Value to New Home Purchase

Smart home technology: Integrating smart home features like automated lighting, security systems, and climate control can appeal to tech-savvy buyers and potentially increase a home’s value. Installing smart thermostats, security systems, and lighting can appeal to tech-savvy buyers and add functional value. Investing in these areas can make your new home more enjoyable and increase its long-term financial return. Unless you bought a new construction home, the chances are that your home needs updating and renovations.

Consider adding rooms or expanding living spaces if possible. More square footage generally increases a home’s value. Planting small trees right away is very important.

It takes years for trees to mature. A 3 feet Blue Spruce can cost as little as $40 per tree. However, it takes many years to grow. Many trees only grow one foot per year. There ways of adding value to new home purchase by remodeling certain rooms in your home. Updated kitchens and bathrooms are a great way of adding value to new home purchase. Not only will you be adding value to new home purchase, but you get to enjoy your investment.

Adding Value To New Home Purchase By Remodeling Attic and Basements

Finishing unfinished basement or attic areas can add valuable living space and increase the home’s overall square footage. Unfinished basements and attic spaces should be remodeled to livable living areas. It does not cost an arm and a leg to finish a basement and/or attic. You can add an extra bedroom and a bathroom. Many homeowners will also add a small kitchen to their basement and a bedroom to make it an in-law suite. Tearing out the old carpet and installing hardwood flooring will do wonders. Hardwood floors will last many years versus carpeting. Landscaping is mostly labor. Grass seeds, small shrubs, smaller trees do not cost a lot.

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Best Way of Adding Value To New Home Purchase

Landscaping improvements, such as adding trees, gardens, or outdoor living spaces (e.g., decks and patios), can make a property more appealing and increase curb appeal. Building or renovating outdoor structures like sheds, garages, or detached studios can provide additional usable space and value. You do not want to have the best home in your neighborhood. Having the largest home in the block is not the best investment. Most homeowners favorite renovation projects are remodeling kitchens and bathrooms. Kitchens and bathrooms do add value to the home. Renovating and finishing basements and attic spaces will create more living space. It is a great investment that homeowners can also enjoy the remodeled finished space.

Larger Scope Repairs With Renovation Loans

Banks are the only financial institutions that homeowners can get home improvement, HELOC’s, and Second Mortgages. However, you need equity in your home to qualify for home improvement and/or HELOC’s. The maximum loan to value banks will lend on home improvement and HELOC’s is 90%.

Many homeowners do not have this type of equity after they purchase a home. One option they have is to refinance their current home loan with an FHA 203k Renovation Loan.

FHA 203k Loans will pay off the current home loan and the lender will give you the construction funds to renovate your home. You just need 3.5% equity after the improved value to qualify. For more information on FHA 203k Loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com. We may have other cash-out refinance loan programs depending on your equity in your home and credit/income profile.