6 Ways to Increase Your Home Value

1. Focus on Curb Appeal

Curb appeal—how good your home looks from the street—plays a major role in the buyer's first impression and can influence your appraised value. The exterior affects the perception of the rest of the home.

Some ways you can improve your home's curb appeal include:

• Paint the exterior
• Mow the lawn and rake leaves
• Trim and prune trees
• Weed and refresh flower beds
• Reseal small cracks in the driveway
• Upgrade exterior light fixtures
• Add window boxes or potted plants
• Install a railing to the front porch
• Replace old or damaged garage doors
• Swap out an outdated or damaged gutter system

Adding a shed or other non-attached structure may add some value, but you typically won't recoup the full cost.

2. Paint Your Walls

A fresh coat of paint is one of the easiest, most cost-effective ways to make your home feel more updated and well-maintained. Neutral, light-colored tones can make the space feel larger and brighter. A good paint job can also cover up small scuffs, scratches and nail holes which can bring down your home's perceived condition.

Focus on high-traffic areas like the entryway, living room, kitchen and hallways. Brighten up small or dark rooms. Don't forget about the baseboards and trim. Painting with a coat of crisp white paint makes the home feel cleaner.

3. Make Minor Repairs

The appraiser considers minor repairs when they're determining the overall condition of the home. Small issues can add up, so fixing them ahead of time can reduce the number of red flags that could otherwise lower your appraised value.

Some easy repairs you can make:

• Update old fixtures and finishes
• Repair leaky faucets
• Replace burned-out or flickering lights
• Spackle and paint over small holes
• Recaulk around tubs, showers and sinks
• Fix broken tiles or loose flooring

Completing minor repairs improves the functionality and overall perception of the home. These fixes can improve the home's appearance without a big investment.

Tip: If the home has visible water damage or mold, those should be addressed immediately. They can significantly lower your appraisal if you don't resolve them—and could lead to more serious issues.

4. Deep Clean and Declutter

An appraiser's job is to evaluate your home as if it's being presented to a new buyer, so cleanliness and organization matter. You want the home to look as appealing and inviting as possible for the appraisal, especially if you haven't deep cleaned or decluttered in several months.

Clearing out clutter makes your home look more presentable, helping rooms feel larger and more functional. A clutter-free space also helps appraisers see your home's true square footage and layout, which can support a higher valuation.

Here's what you should tackle:

• Clean or replace carpets
• Wipe down appliances and baseboards
• Organize closets and storage areas
• Clear out personal items
• Ensure all rooms and corners are accessible

You can deep clean yourself if you have the time, or hire a professional cleaning crew to get your home in good shape.

5. Add Energy-Efficient Features

Energy-efficient features make your home cheaper to operate and add value by making it more attractive to buyers. Appraisers typically take note of these upgrades, particularly when they're permanent home fixtures.

Here are some energy-efficient features to consider:

• Install a smart thermostat
• Use energy-efficient light bulbs
• Add or upgrade attic insulation
• Add weatherstripping to doors and windows
• Install energy-efficient windows
• Upgrade to an energy-efficient HVAC system
• Add solar panels

In many markets, homes with energy-efficient upgrades are in higher demand. Adding these features can help your home stand out in competitive areas.

Tip: Some energy-efficient improvements to your home may qualify for tax credits.

6. Increase Your Usable Space

Appraisers assign value based on livable, finished space. Increasing that space can really pay off, especially since home values are often calculated based on price per square foot.

You don't have to add a new room, however. You may be able to make use of what you already have to increase the perceived size and function of the home.

Some ways to maximize livable space:

• Finish your basement with drywall, flooring and lighting
• Convert accessible attic space to a storage space or bonus room
• Add cabinets, counters or a utility sink to your laundry or utility room
• Stage your patio or deck with seating and lights

Increasing square footage involves some upfront investment, but it's one of the most reliable ways to increase your home's value. It's especially valuable in markets where there's a high demand for additional living space.

If you don't have the time or money to add square footage, undertaking some of the less expensive ways to add usable space can still help your home feel larger.

Learn more: How Do Home Renovations Impact Your Home Insurance Costs?

What Factors Affect a Home Appraisal?

To estimate your home's market value, the appraiser considers your home's condition, size and features, as well as recent sales of similar homes in your area. While upgrades and improvements help, the local housing market may establish a ceiling for your home's appraised value.

An appraisal considers several key factors to assess your home:

• Location
• Total square footage
• Year the home was built
• Overall condition and maintenance
• Number, size and layout of bedrooms and bathrooms
• Unique features like fireplaces and basements
• Quality of finishes
• Energy efficiency and modern systems
• Neighborhood amenities
• Market conditions

How Much Do Renovations Increase Home Value?

Renovations have a varying effect on home value. In many cases, the cost of a renovation may exceed its resale value, meaning you won't recoup every dollar you've spent when it's time to sell. Certain projects can still be worth the investment, especially if they boost your home's appeal in a competitive market.

Source: Journal of Light Construction's 2024 Cost vs. Value Report

Learn more: How to Dispute a Home Appraisal

How to Pay for Home Improvements

The cost of home improvements can vary dramatically, ranging from a few hundred dollars for minor repairs to over $100,000 for major renovations. The right financing option can help you manage home improvement costs and avoid taking on unnecessary debt. Here are some common ways to pay for home improvements:

Intro 0% APR Card

An introductory 0% APR credit card allows you to finance purchases interest-free during a promotional period, which typically lasts 12 to 21 months. It's a convenient option for buying materials or tools, or paying contractors.

Your project cost will be limited to your credit limit, so a 0% intro APR card is better for small projects that you can pay off within the promotional window. Once the promo period ends, interest rates can increase significantly, so it's important to have a payoff plan in place.

Personal Loan

Personal loans are unsecured, meaning they don't require collateral, such as your home. They offer fixed interest rates and a set repayment term, usually between two and seven years.

You can borrow up to $100,000, depending on your income, credit score and the lender. Higher loan amounts make personal loans a solid choice for mid-sized projects. Keep in mind that interest rates may be higher than with secured loans but could be easier to qualify for.

Home Equity Loan

A home equity loan lets you borrow a lump sum based on the equity you've built in your home. These loans come with fixed interest rates and repayment terms ranging from five to 30 years.

If you have significant equity in your home, a home equity loan is good for larger projects. Interest may be tax deductible, but since your home serves as collateral, there's a risk of foreclosure if you can't make payments.

Home Equity Line of Credit (HELOC)

A HELOC works like a credit card tied to your home equity. You'll have a credit line with a draw period (typically up to 10 years) during which you can borrow as needed, followed by a repayment period of up to 20 years.

HELOCs are great for projects with flexible or ongoing costs. You only pay interest on what you borrow. However, variable interest rates mean your monthly payments can fluctuate, making budgeting trickier.

Savings

Using cash from your savings allows you to avoid debt completely and gives you full control over your budget. There's no credit check or approval time, and you won't pay interest or fees. It's a good option for smaller projects that don't require a large budget.

Before dipping into your savings, make sure you maintain a comfortable emergency fund so you have money for unexpected expenses. Also, to make the best decision, consider whether spending cash would take away from meeting other financial goals.

Tip: If you want to use cash to fix up your house, saving money in a high-yield savings account can help you earn significantly more interest than with a traditional savings account. This could give you a bit more money to work with when it's time to start your project.

The Bottom Line

Improving your home before an appraisal doesn't require a full renovation. Making small, strategic upgrades can make a noticeable impact on your home's appraised value. Keep in mind that not all home improvements increase your home's value dollar for dollar.

If you're planning to finance upgrades to your home, start by checking your FICO^® Score^☉ for free with Experian. Your credit will influence both your loan approval and the interest rate you qualify for. If you have a low credit score, consider working to improve your credit first so you secure better financing terms.