When it comes to increasing the value of a property, there are many factors to consider. Finishing a 400 to 1500 square foot basement can have a potential return on investment (ROI) of up to 75%, according to HomeAdvisor. Replacing an existing front door with a steel one has recovered between 65% and 91% in resale over the past four years, due to its energy efficiency, low maintenance and cold blocking power. In recent years, Americans have been embracing the healing benefits and relative safety of being outdoors, which has impacted housing preferences.
If your home is between 10 and 15 years old, some expensive items that buyers may need to repair or replace in the coming years could cause them to look elsewhere. Doing some repairs now can help you get the best selling price. Toilet technology has improved since 1994, when federal law restricted toilet cisterns to 1.6 gallons per flush (GPF). Many first-time homebuyers believe that the physical characteristics of a home will lead to an increase in the value of the property.
However, in reality, the physical structure of a property tends to depreciate over time, while the land on which it sits usually appreciates in value. Understanding how potential land values influence property returns allows investors to make better decisions. The Rocket Mortgage Learning Center provides articles on home buying, loan types, mortgage basics and refinancing.