Your home isn't just a place to settle down. It's also a valuable investment that can yield significant returns and help you build wealth.

Whether you're planning to sell or increase your property's worth, understanding how to increase home value is an essential skill to acquire. Even better, implementing this knowledge can help you take advantage of the Philippine real estate market's significant 3.9% average annual growth (1) and maximize your investment returns.

If you're in the market for high-quality properties, we can teach you how to boost your home value effectively—starting with factors that affect home value and tried-and-tested strategies to take you closer to your goal.

4 Factors That Affect Home Value

Knowing the elements influencing your property’s value gives you an idea of the home improvements you must undertake.

1. Neighborhood

Being in proximity to essential amenities significantly increases your home value. These infrastructures include schools, hospitals, shops, entertainment, public transportation, and main thoroughfares. Metrics like education quality and crime rates also contribute to property value.

2. Value of comparable properties

Does your area have real estate similar to yours? These houses are comparable properties (2) or comps, and their selling price directly influences your own. Check out comp rates on property marketplaces to estimate your property's fair market value.

3. Floor and lot area

A larger house will cost more than a significantly smaller one, sometimes even if the latter is better maintained. Considering this factor is vital to maximizing your investment since data shows that more people (41%) buy bigger homes (3) than smaller ones.

4. Age and condition

In most cases, age drags down your property's worth. Long-term deterioration due to time wreaks havoc, from leaky pipes and water damage to faulty wiring and fire hazards. An appraiser can help you determine if your home's age has affected its value.

How to Boost Home Value in 8 Ways

Improving your house is a worthwhile investment that pays off in numerous ways. These home improvement strategies can make your property more valuable.

1. Repaint

Never underestimate the value of a fresh coat of color. Repainting can make your home look well-maintained since it hides cracks and other blemishes from view.

Start by matching colors. Clashing hues might make your home look messy and jarring, so pick a palette that fits your preferences. Also, don't forget to use a primer to ensure the pigment sticks to the surface. Otherwise, it could fade and flake off faster than expected.

2. Do repairs

Repairing home damage can do wonders for your property's value, especially if you're in the appraisal stage of the sales process. That said, even if you aren't planning to sell, repairs significantly improve your house's longevity and prevent subsequent issues, like pest infestations and water damage.

Begin by examining every corner of your home for damaged fixtures, such as broken windows and creaky floorboards. Then, fix them or hire a repairer to make your house more functional.

3. Enhance energy efficiency

A power-hungry house is challenging to sell. Legal & General reports that most buyers prefer energy-efficient homes (4). Even without plans to sell, an energy-saving home can go a long way in reducing your monthly electricity bills.

The simplest way to achieve this goal is to keep outdoor temperatures at bay with double-pane windows and insulation. You could also choose appliances with high-efficiency ratings (5) to drive down electricity bills further.

4. Improve landscaping

Freshen up your property's exterior to make it look more appealing from the outside. After all, your curb and lawn are some of the first features visitors and neighbors will see and appreciate.

Improving curb appeal (6) and landscaping doesn't have to break the bank. Add simple features like grass and plants to make an excellent first impression. For example, if you're planning to buy a duplex house for sale, you can look into repainting exteriors and removing dead foliage to improve the overall look of the property.

5. Renovate key spaces

Kitchen and bathroom renovations provide the highest returns (7) among other room improvement projects. So, focus on these areas to increase your home value.

Replacing fixtures, repainting walls, and upgrading appliances can do wonders for your kitchen and bathroom. If you have a studio unit, add more space by rearranging the kitchen layout. Ultimately, these efforts allow you to maximize square footage and make your home more suited to your lifestyle.

6. Convert unfinished rooms

Square footage is a critical factor in determining your home's worth. An expansive floor area involves a higher value, so make it a goal to turn every corner into a livable space.

An effective way to do this is by converting unfinished rooms into usable areas. Is your basement empty? You could add a bed and spread a carpet to turn it into a small bedroom. Meanwhile, incorporating desks and shelves can transform a bare guest room into a home office.

7. Exterminate pests

Pests in your home are more than unpleasant—they also damage the property and pose a risk to your health and safety. Rats chew wires and create a fire hazard, while cockroaches and mosquitoes spread disease and contaminate food.

Even worse, pests drastically lower your property's value, so take any means necessary to eliminate them from your home. You could hire a pest control service to avoid the hassle of dealing with pests, but you can DIY (8) to reduce expenses.

8. Incorporate smart technology

Integrating smart home (9) systems into your house is a costly undertaking. However, these innovations can significantly increase your home’s value and provide a more convenient living experience.

A cost-effective way to do this is by incorporating intelligent locks into your front door. This device uses a digital key, an alarm system, and a surveillance camera to elevate your home's security. You could also integrate smart bulbs that let you control brightness, colors, and lighting schedules from your smartphone.

Maximize Your Real Estate Investment

Whether you plan to sell the property or improve its features, evaluate your home for opportunities to improve its market worth. Besides transforming your home into a desirable asset that delivers exceptional returns, you can reap the long-term benefits of a well-maintained house and enjoy a better lifestyle.

To do away with tedious financing options and steps, check out the OnePropertee website and look for your dream home today!

Sources:

1. “Philippines House Prices Growth.” CEIC. Accessed June 29, 2023. https://www.ceicdata.com/en/indicator/philippines/house-prices-growth.

2. “Real Estate Comps: How to Find and Use Them.” Real Estate Comps: How To Find & Use Them | Rocket Mortgage. Accessed June 29, 2023. https://www.rocketmortgage.com/learn/real-estate-comps.

3. 2022 Home Buyers and Sellers Generational Trends Report - www.nar.realtor. Accessed June 29, 2023. https://cdn.nar.realtor/sites/default/files/documents/2022-home-buyers-and-sellers-generational-trends-03-23-2022.pdf.

4. “Legal & General Research Shows Buyers Will Pay up to 20% Premium for Low Carbon Homes.” Legal & General research shows buyers will pay up to 20% premium for low carbon homes | Legal & General. Accessed June 29, 2023. https://group.legalandgeneral.com/en/newsroom/press-releases/legal-general-research-shows-buyers-will-pay-up-to-20-premium-for-low-carbon-homes.

5. Energy Labeling Guide For Purchasing Appliances. Accessed June 29, 2023. https://www.doe.gov.ph/sites/default/files/pdf/announcements/iloilo-a-bs6-02-energy-labeling-guide-for-appliances-lighting-products.pdf.

6. Chen, James. “Curb Appeal.” Investopedia, June 28, 2022. https://www.investopedia.com/terms/c/curb-appeal.asp.

7. Cost vs. value 2023 | National | Remodeling. Accessed June 29, 2023. https://www.remodeling.hw.net/cost-vs-value/2023/.

8. “DIY Pest Control Strategies and Techniques.” Family Handyman, March 15, 2023. https://www.familyhandyman.com/list/diy-pest-control-strategies/.

9. Hayes, Adam. “Smart Home: Definition, How They Work, Pros and Cons.” Investopedia, December 19, 2022. https://www.investopedia.com/terms/s/smart-home.asp.