How Do You Build Home Equity With Home Improvements?

You’ve bought your dream home, but there’s still room for improvement. Whether you’re looking to sell your home or just make it more livable, here are 13 ways to increase the value of your house and build equity.

Home Equity Explained | How To Build Equity
Building home equity takes time and patience, but careful planning and strategic investments in home improvements can pay off in the long run.
Home equity loans and lines of credit can be useful tools for financing home improvement projects, but it’s important to choose the option that best fits your financial needs and budget.
Before embarking on a home improvement project, it’s important to research your options, set a realistic budget, and hire reputable contractors to ensure that your project is completed to your satisfaction and meets local building codes.
Certain home improvement projects, such as kitchen and bathroom remodels, can have a significant impact on your home’s value and equity, while others may have little or no effect. It’s important to choose projects that align with your goals and the needs of your home and family.
To maximize the value of your home improvement projects and build equity over time, consider investing in energy-efficient upgrades, choosing durable and low-maintenance materials, and creating a cohesive and functional design that appeals to potential buyers.

Improve Your Curb Appeal

One of the most important things you can do to improve your home’s curb appeal is make sure it looks tidy and well-maintained. 

This includes keeping lawns free from weeds, trimming hedges, and cleaning windows. Take a look around your neighborhood at other houses—the ones that look like they’re taken care of have better curb appeal than ones that don’t.

If you notice some rooms inside or outside the house are in need of repairs, those are also good places to start with exterior improvements. 

Repairing broken shingles on the roof, replacing cracked windows, or getting rid of peeling paint can all help make your home look nicer as well as increase its value down the road when you decide to sell it in ten years (or sooner).

Fixing up exterior features such as patios, decks and fences will also increase their value over time these improvements give children more space for playing outdoors while presenting homeowners with an opportunity for relaxation in their own backyard spaces rather than having them spend money on expensive vacations every summer!

Are you planning a home renovation project? Let our guide on planning a home renovation project help you get started. From setting a budget to hiring a contractor, we’ve got you covered with expert tips and advice.

Update Your Kitchen

In addition to the aesthetic and functional benefits of updating your kitchen, you can also increase the value of your home by as much as 30%. 

Your kitchen is one of the most important rooms in your home; it’s where you prepare food for family and friends, so it should be comfortable, efficient and easy to use. 

If you’re considering an update from a previous generation, another option is to select modern materials like stainless steel or quartz countertops that won’t fade over time like their natural stone counterparts. 

This will help keep your kitchen looking pristine long after other parts of your home have begun to wear down.

The best way to get started on this project is by talking with a contractor who can give you an estimate based on what type of cabinetry design they recommend (custom cabinets are often more expensive but have more options than pre-fabricated ones) along with any other upgrades such as appliances or lighting fixtures they feel would work best in this space

Benefits of Updating Your Kitchen

Potential BenefitsDescription
Increased Home ValueUpdating your kitchen can increase the value of your home by as much as 30%, making it a wise investment for homeowners looking to build equity.
Improved FunctionalityA kitchen renovation can improve the flow, organization, and storage of your space, making it more functional and efficient for cooking and entertaining.
Enhanced AestheticsUpdating your kitchen can give it a fresh, modern look that reflects your personal style and enhances the overall appeal of your home.
Energy EfficiencyBy upgrading your appliances and lighting to more energy-efficient models, you can reduce your energy consumption and save on utility costs over time.
Health and SafetyA kitchen renovation can address potential health and safety concerns, such as outdated wiring, mold or mildew, and poor ventilation, creating a healthier and safer environment for you and your family.

Renovate Your Bathroom

If you’re serious about building home equity with home improvements, renovating your bathroom is a great way to start. The following are some things that can be done:

Add a shower. This is one of the most common renovations because it doesn’t cost very much and is fairly easy to do. If you’ve got an old tub that’s cracked, chipped or discolored (a common problem in older homes), you can replace it with a new one and upgrade your entire bathroom at the same time. Just make sure the new tub will fit into your space!

Install a new bathtub. If you want something more advanced than just replacing an old faucet or drain, consider installing an entirely new bathtub in your home—especially if yours is old and dated looking. You’ll also want to make sure there’s enough room for this kind of project before taking on such an ambitious task!

Plumbing problems are never fun to deal with, but you don’t have to be an expert to fix them. Our pro guide on fixing plumbing problems covers everything from clogged drains to leaky faucets, so you can tackle these common issues with confidence.

Build A Deck

A deck is a great way to add value to your home and increase the enjoyment of your outdoor space. Whether you want an open-air deck that’s perfect for lounging, or one with walls for extra privacy and protection from the elements, there are many options available when it comes to building a deck. 

Here are some tips for constructing yours:

Planning Location – The first thing you’ll need is a plan for where you want your new structure built. Generally speaking, decks should be placed over concrete slabs because they’re sturdy and moisture resistant. 

However, if you have sandy soil or live in an area prone to flooding (like Florida), building directly on top of dirt may not be feasible due to potential problems with water seepage through the wood frame supporting structures like these can cause rot within weeks if not treated properly before placing them outdoors near any type of water source.

Planning Size – You’ll also want take measurements during this stage so that once construction begins later down the road everything fits together properly without gaps between boards or bolts sticking out awkwardly into view where they shouldn’t go according as well as ensuring

Install Hardwood Floors

Hardwood floors may be more expensive to install than carpet, but they are definitely worth the investment because of their durability, ease of maintenance and cleanliness, and affordability. 

Plus, there are so many gorgeous options for this type of flooring that it’s easy to find one that suits your style. 

And if you live in an area where hardwood is common (like the northeast), it’ll make your home feel like it has its own character—rather than looking like every other house on the block!

Home repairs can be expensive, but with the right strategies, you can save money and avoid unnecessary stress. Check out our pro tips on saving for home repairs to learn how to budget effectively, prioritize repairs, and get the most for your money.

Replace Siding

  • Siding is the outer covering of your home. It can be made of wood, metal, vinyl or even brick.
  • Replacing siding is one of the least expensive ways to improve the value of your home and make it more energy efficient at the same time.
  • Siding has many different styles and designs to choose from so you can get exactly what you want while adding curb appeal to your house.

Benefits of Replacing Your Siding

Potential BenefitsDescription
Enhanced Curb AppealReplacing your siding can dramatically improve the curb appeal of your home, giving it a fresh, updated look that boosts its overall value and appeal.
Improved Energy EfficiencyNew siding can add an additional layer of insulation to your home, helping to reduce energy consumption and saving you money on heating and cooling costs.
Increased DurabilityModern siding materials are designed to be highly durable, with a lifespan of up to 50 years or more, making them a long-term investment in the value and protection of your home.
Reduced MaintenanceNew siding requires minimal maintenance, with no need for painting, staining, or regular upkeep, freeing up your time and energy for other home improvement projects.
Protection from the ElementsReplacing your siding can protect your home from moisture damage, insect infestations, and other outdoor elements, ensuring that it remains structurally sound and safe for years to come.

Replace Windows

Window replacement is an excellent way to increase the energy efficiency of your home. Before you embark on this project, make sure that you select windows with a high R-value. The higher the R-value, the better a window will insulate against cold weather and keep heat in during winter months.

You should also consider whether or not replacement windows will work for your budget and style preferences as well as how easy they will be to maintain over time. 

For example, if you want easy access to clean up bird droppings on your windowsills every now and then, it’s probably best to go with single hung windows rather than sliding glass doors that don’t open fully all at once (or vice versa).

Finally, find out what kind of warranty replacement windows come with and if there are any extra costs associated with replacing them down the road such as installation fees or maintenance costs for new hardware needed after years of use (screws come loose over time!).

If you’re planning a home improvement project, you’re probably wondering how you’re going to pay for it. Our guide on paying for home improvements breaks down the most common sources of funding, from home equity loans to credit cards, so you can choose the best option for your needs.

Replace Your Roof

A new roof can increase the value of your home by up to 10%, and it’s one of the best home improvements you can make. 

You can replace or repair your current roof in stages, as you have the money, which makes this an affordable way to increase the value of your home over time.

The cost for replacing a roof varies depending on the size of your home, what material you use and who does the work (you or a contractor). 

A basic asphalt shingle installation costs about $3 per square foot, while a lower-maintenance synthetic shingle installation may cost as little as $2 per square foot. 

If you’re looking for an even better deal on materials, consider making this feature part of a larger remodeling project that includes other upgrades such as insulation and windows—the overall cost will be higher but each individual improvement will make less difference in price than if they were done separately.

Add A Room To Your House

Adding a room to your home is an excellent way to increase the value of your home. Before you get started, make sure that you have enough space for the new room and that it won’t infringe on any existing functions of your home (like plumbing).

Once you’ve established a plan for where to build the room, there are some things to keep in mind about construction:

  • What type of flooring will I need? Carpet or hardwood?
  • What kind of insulation will I need? Fiberglass or foam?

How do I get electricity running through my walls and ceiling? Do I run wires through conduit tubes or just drill holes through studs and rafters? Can I run cable along joists without drilling into them (and what kind)? 

Home renovations can be overwhelming, but they don’t have to be. With a solid plan and the right resources, you can make your dream home a reality. Our guide on how home renovations work covers the key steps involved, from concept to completion.

Finish The Basement Or Turn It Into An Apartment Unit

This is a huge undertaking, but it can be worth it if you have the right space to do it. If you’re lucky enough to have a basement that can be finished, or even turned into an apartment unit, it could provide you with some significant returns on your investment.

The first step in getting started is determining what kind of finishing work needs to be done and how much time and money will be required. 

Then, determine whether transforming this space into something more useful and comfortable makes financial sense for your family. If so:

  • Determine how much rent you could charge for the extra space (you may need professional help)
  • Figure out how much additional income will offset expenses (taxes and insurance)
  • Add all costs together

Make Energy Efficiency Upgrades Such As Adding Solar Panels

You can also make energy efficiency upgrades that will help you save on your electricity costs. For example, installing solar panels could reduce your electricity bill by as much as 80%. 

It’s an expensive investment in the beginning, but if you qualify for a tax credit or get a lease for your solar panels, then it may be more affordable than it seems at first glance.

Install A Home Security System Or Smart-Home Technology

You might be wondering how to pay for this upgrade. While it can be expensive, there are ways to save money on home security systems and smart-home technology.

For example, you can see if there are any rebates available in your area. Some utility companies offer them if you install solar panels or other energy-saving products on your house. 

Also, take advantage of government tax credits by doing some research online or calling up your local government office. You may also want to talk with friends and family members who have installed home security systems before purchasing one yourself so that they can share helpful tips about their experience with you!

Add Storage Space Such As A Closet Or Shed In The Backyard

There are a number of useful things you can do in your backyard to add storage space. It may be as simple as adding a shed in the corner of your yard, or creating an additional closet in your kitchen. You could also consider adding a laundry room, mudroom, or attic stairs if you don’t have them already.


These are just a few ways that you can improve your home and increase your equity. If you have any questions about what will work best for your house and needs, please contact us! We’re here to help.

Further Reading

Here are some additional resources to help you learn more about building home equity with home improvements:

How to Build Home Equity with Home Improvements: This informative guide offers advice on making smart investment decisions when it comes to home renovations and improvements.

Home Equity for Improvement and Renovation: Bankrate’s comprehensive guide covers home equity loans and lines of credit, as well as tips for leveraging your home’s equity to fund your home improvement projects.

5 Home Improvement Projects That Build Equity: This article highlights five home improvement projects that can add value to your property and help you build equity over time.


Here are some frequently asked questions about building home equity with home improvements:

What is home equity, and how can I use it for home improvements?

Home equity is the difference between your home’s value and the outstanding balance of your mortgage. You can use your home equity to finance improvements that will increase your home’s value and potentially build equity over time. Options for accessing your home equity include home equity loans, lines of credit, or cash-out refinancing.

What are some home improvement projects that can build equity?

Some examples of home improvement projects that can build equity include kitchen and bathroom remodels, adding a deck or patio, finishing a basement or attic, and upgrading your HVAC system or windows.

How can I finance my home improvement projects?

There are several ways to finance home improvement projects, including home equity loans, lines of credit, personal loans, credit cards, and cash-out refinancing. It’s important to weigh the pros and cons of each option and choose the one that’s most affordable and fits your financial needs.

What should I consider before starting a home improvement project?

Before starting a home improvement project, it’s important to set a budget, research contractors and materials, and consider the potential return on investment. You should also obtain any necessary permits and ensure that your project complies with local building codes.

How can I maximize the value of my home improvement projects?

To maximize the value of your home improvement projects and build equity over time, consider investing in energy-efficient upgrades, choosing durable and low-maintenance materials, and creating a cohesive and functional design that appeals to potential buyers.