Unlike some other assets, like your car or furniture, your home’s value can appreciate, or increase, over time. By taking key actions and understanding the important factors at play, you can increase the value of your home exponentially. Below is an outline of some of these steps.
Home Appreciation Factors
There are various key factors at play that have an effect on your home’s value, some of which are out of your control, but the majority of which are directly under your control:
The first thing that plays a role in the current and potential value of your home is location. Which state, region, and town is your home located in? What’s the nearest city or economic center? What is the surrounding school system like? What stores, restaurants, and other attractions are present nearby? These and other similar considerations are critical to initial valuations of your home, and are even more integral to your home’s future value. If you live in a promising center for economic growth, then your home has far greater potential for a high valuation in the future than other homes might have.
Your home property’s size, measured in acreage, is very important to its overall value. Having not only more land but also quality land is an essential part of your home’s value. Additionally, this property must be curated well and improved upon when possible.
Take Care of Your Home
Location and property size are most important when searching for a home, but once you own your home, your next strategy for increasing its value becomes home improvement. There are many small and simple ways for you to improve your home’s value, from general upkeep to small home improvements. Things like curb appeal, home repairs, and other tactics are incredibly useful while remaining affordable. These are some of the most effective ways to increase your home’s value and build equity.
As previously mentioned, there are some things that factor into your home’s value that are out of your direct control. Housing markets in the U.S. fluctuate regularly, moving from buyers‘ markets to sellers‘ markets and experiencing shifts in relative prices. It is important to watch the market carefully and, whether buying or selling your home, to pay close attention to the timing of changes in the market. Stay up to date with housing forecasts.