Quick Case Study: The Average Home Value Increase Per Year
Buying
Your house is an investment, no matter how long you plan to stay. A small, annual equity increase over 30 years could dramatically increase the value of your property as compared to when you bought it. However, purchasing a house that you plan to live in for five years or less could hurt you if the appreciation rate is not high enough. Here is a quick case study on home value and equity gains:
Understanding Appreciation Figures
Sometimes websites publish information about the median price or value of homes. As this figure rises, you may assume that it is due entirely to higher property appreciation rates. However, it is important to understand that many new homes are larger than previous ones on the market. As a result, the increase in the size of new homes can bump up the assumed rate of appreciation.
In general, equity gains are variable and unpredictable. Depending on the market and economy, you could gain 7% in a year. However, the historical national average is closer to 3-5%. Over time, this percentage as applied to your home value can really add up. Keep in mind that whenever you are ready to sell your home, its value will largely depend on similar homes sold in the area within the last 3-6 months. Because of this fact, it may be worthwhile to wait out a tough market if you think it will improve rather than selling immediately.
How to Improve the Average Home Value Increase Per Year
You may not be able to change your property’s location or architectural style, but you can try to help it appreciate in value. Improving your front yard curb appeal is one of the best ways to boost your house’s perceived and actual market value. Other ideas include upgrading your kitchen and bathrooms or making other minor renovations.
Tips for Front Yard Curb Appeal
To improve how your house appears to potential buyers in the future, start with a manicured lawn. Remove dead or low-hanging tree branches, and add grass, bushes, or decorate rock to any bare batches. Consider adding a low retaining wall to a structured flowerbed, or outlining your walkway with plants or small paver stones.
Finally, make sure the house itself looks great. Replace any broken shingles, and pay attention to your property’s paint and siding. Meanwhile, keep the garage door dent-free and tackle any minor gutter problems before they become major drainage issues. Following these tips can help with increase value while keeping your property market-ready.
