Your Home Equity Is the Key to Home Improvement

March 28, 2024 |
Article | 5 min
| Personal Insights

Your dream kitchen, bathroom, patio, or basement could be within reach if you’re sitting on home equity. Whether you’re looking to add an addition, finish a room, or enclose a patio, a remodel can add value to your house over time. Not sure where to start? There are numerous ways to add value to your home, so let’s explore some of the options together. Here are some of the most common home upgrades that add value to your home.

Bathroom Upgrades Have an Impressive ROI

If your family constantly battles for the bathroom or if you frequently host guests, consider expanding your house with an additional bathroom. Whether it’s a full bath or a half, adding a bathroom to your property has impressive returns. In fact, adding a half bath or expanding an existing half bath to a full bath can be surprisingly affordable. Regardless of the path you choose, you will undoubtedly reap the rewards of the addition in the future. Zillow data reveals that bathroom remodels yield the biggest ROI in terms of resale value. “For minor cosmetic changes, you’ll see a $1.71 increase in home value for every $1 you spend.”

Enclose the Patio or Porch for More Livable Space

Your porch or back patio could be sitting dormant, leaving your home without the advantage of that extra livable square footage. Whether you love the great outdoors or only enjoy it on occasion, screening in or covering your patio completely can create higher returns in the long run. Consider converting your back porch or patio into a four-season sunroom.

In order for your porch or sunroom additions to be considered livable square footage, it should be equipped with heating, cooling, and accessible from the house. While this may seem like a hassle, it’s well worth the investment. According to Pacific Patio, “Adding a screen porch is considered to be one of the best improvements you can make to your home. In fact, the average return on investment for a screen porch is around 70-75%.”

Expand a Room and Expand Your Square Footage

If you’re looking to add some extra space to your house without undertaking a major renovation project, there’s a cost-effective and straightforward solution. Cantilevered house bump-outs are small extensions of rooms that add square footage to your home. According to Forbes Home, the average cost of a bump-out is $11,300, but adds significant value in the extra square footage it provides.

Bump-out additions can be as small as two feet and as large as 10-15 feet and do not require a roof or foundation work. With careful planning and execution, bump-outs can seamlessly blend in with the rest of your home. Although a bump-out may only add a few square feet, it can make a significant difference in the usability of a room.

Finish a Room to Enhance Your Living Space

If you’re looking to increase your living space without the hassle and expense of a home addition, consider finishing off any unfinished rooms in your house, such as the basement, workshop, or laundry room. 

Typically, unfinished areas of a house are not included in the calculation of a home’s square footage, regardless of their location. However, by adding an egress door or window for emergencies, you can ensure that the room counts towards your home’s overall square footage.

To make the most of your home modification project, it’s important to carefully plan and consult with experts who can guide you in choosing the right modifications that align with your home’s floor plan and your family’s unique lifestyle.

Fund Your Next Home Improvement Project with a Home Equity Line of Credit (HELOC)

Ready to make your dream reno a reality? Your project is within reach when you utilize your home’s equity. A Home Equity Line of Credit (HELOC) is a great way to finance your next home project - and one of the most affordable. Take advantage of low interest rates to make your payment as low as possible. Want to learn how? Get in touch with us today to discover how your home’s equity can help you create more value in your home.

Discover HELOC Options

Normal underwriting guidelines apply, subject to credit approval.