As housing starts soar more than 20% and the American property market takes aim for a comeback, there are also cities like New York that struggle due to a spike in violent crime, where home owners face a different reality. The U.S. is thus seeing a two-speed situation: where many rural areas see increased demand, as people exit larger cities in a new covid-19 reality.
When homeowners are looking into selling, they often look for ways in which they can increase their home’s value. Solar panels, metal roofs, and other upgrades can help homeowners get the most out of their sale and create value on the market.
Rusty Tweed, a solar energy expert, explains the different types of upgrades that homeowners can install to make sure they get the best-selling price possible.
Simply installing a solar energy system can raise your home’s value by over 4 percent. Solar panels may even pay for themselves over time with savings on electricity, though this depends on where you live.
The metro areas that stand to gain the most from installing home solar panels are the New York market where the home value can be increased by over 5 percent, the San Francisco market with a 4 percent increase, and the Orlando market over 4 percent.
Installing and maintaining solar panels may be expensive at the outset, but federal and state tax incentives are available to defray the cost of these upgrades. The federal Investment Tax Credit provides for a 26 percent tax credit for homes and businesses that install solar panels on their property. The Investment Tax Credit has helped the United States solar industry to grow 10,000 percent since its implementation in 2006.
Metal roofs add a great deal of value to a home. Steel and aluminum are the two most common materials. A metal roof is cost-effective, attractive, and more resistant to wind and weather than a traditional shingled roof. Metal roofs can be installed in all weather conditions, and they can be specially constructed to compensate for shrinkage and swelling of timbers over the course of the year.
A metal roof can provide a 6 percent increase to the value of your home. Your home will be more energy-efficient and you will experience far lower maintenance costs. A metal roof lasts for 40 to 70 years, as compared to an asphalt shingled roof which lasts for 12 to 20 years.
Metal roofs are also associated with lower utility costs. Metal roofs reflect solar radiant heat, reducing cooling costs by up to 25 percent.
The cost of installing a metal roof compares favorably to the cost of a traditional shingled roof when the ongoing costs of maintenance and replacement are considered. All homeowners who want to add to their home’s value should look carefully at a metal roof.
An Updated Kitchen
One of the best ways to increase your home’s value and selling price is to upgrade the kitchen. Removing dated cabinets and countertops is a good place to start. Flooring can also be replaced. For an extra upgrade, consider buying top-grade appliances. A kitchen upgrade can increase your home’s value by 7 percent.
Any homeowner can tell you how much a new bathroom contributes to the beauty of their home. Old and dated bathrooms turn buyers off. New bathrooms return 60 percent of their cost when it comes to sales time. In the Western United States, homeowners may be able to recoup 67 percent of the cost. In the East, it may only be about 47 percent.
Energy-Efficient Windows and Doors
Windows and doors that are properly insulated are associated with higher home value. They will also make your home more attractive to buyers since they can lower energy bills by 7 to 15 percent. New windows and doors raise a home’s value by $11,000 on a $15,000 investment.
Replacing Vinyl Siding
Old vinyl siding or unattractive painted wooden siding can lead to a lower home value. New siding provides an 89 percent return on investment, meaning that the home’s value will be raised significantly.
Wall-to-wall carpets are out of fashion. Homeowners are discovering that they can raise the value of their homes by installing hardwood floors. Engineered hardwood floors also produce some return, but not as much as a genuine hardwood floor. Homeowners can expect a price bump of 3 to 5 percent from replacing their floors.
When selling a home to an older buyer, homeowners should know that adding accessibility features like walk-in showers and first-floor master bedroom and bath suites can pay off in a 1 to 2 percent value increase.
One of the easiest things to upgrade in your home is the interior paint. This can also bump your home’s value by 1 to 2 percent, a significant amount when you consider the relatively low investment.
Making Smart Upgrades
With this information, you will be able to decide which home upgrades make the most sense in your situation. The cost-benefit analysis of each home upgrade should be considered. Overall, investments like metal roofs and solar panels give you the best value for your money. Rusty Tweed is a supporter of renewable energy, and he believes that it is worthwhile to include it in every new and remodeled home.