Even though we have only lived in our home for less than a year, my husband and I have been able to add significant equity to the value of our home. We spent approximately $20,000, on our $400,000 home.
Only recently, after all of our home improvement projects were completed, we had the house reappraised. Happily, it came in with a full appraisal of nearly $480,000. Adding an additional $60,000 of equity in the first year of owning a home, has added a sense of self pride in our confidence levels, and a great addition to our net worth.
What We Did
We were very careful in selecting the best types of home improvement projects to perform on the home. We knew that every dollar we invested had to generate more money than we spent. This is the only way we could increase the equity. We chose specific upgrades that were sure proof methods for adding equity.
Winterizing the House
We purchased an old home that was built back in the 1940s. We knew that there were significant issues with the home in its ability to remain energy-efficient when heating and cooling the interior. We chose to winterize the house, and bring it up to code to ensure that it operated as efficiently as possible.
We changed out the existing windows and doors (exterior) and added new weather stripping and caulking. This immediately transformed the drafty old house into a modern structure. We minimized the transfer of heat simply by changing out the windows and doors.
We also changed out the HVAC system, because it was highly inefficient. We recognized that an HVAC system is only intended to last 12 to 15 years. When we purchased the home, the existing air-conditioning/heat pump was already 18 years old. For less than $6000, we hired a professional company to install a new condenser unit and air handler. We went from a very inefficient heating and cooling system, to one with the latest most advanced technology.
We recognized almost immediately that are utility bills were lowered. We are saving every month on the amount of money it cost to heat and cool the home. This is a phenomenal savings, and an ideal choice for a home improvement project.
We hired a professional painting company to completely paint the exterior of the home. The old dull finish to the home is now bright, with a neutral color and complementary accent colors. Our once boring appearing home from the outside is now one that has tremendous curb appeal, and greater value. We have gone from being the ugliest home in the neighborhood, to the most attractive one.
The last home improvement project we performed to add significant equity to the home was to change the roof. We hired a professional roofing company, and chose stylish architectural shingles. They removed the outdated, ineffective leaky roof and install the new one. The entire project only took a couple of days.
All of the home improvements we made to our house is added a substantial amount of equity to its worth. Through proper choices, we selected only the best home improvement projects that were sure to gain equity.