Smart Ways to Increase Your Home Value
- Increasing your home’s value ahead of selling could pay off in a higher purchase price.
- Upgrades to consider include replacing your front or garage door, and adding a manufactured stone facade.
- Borrowing against your home equity is one way to pay for home improvements—if you have the breathing room to repay the loan.
Table of Contents
If you’re thinking of selling your home, making a few upgrades could help move you to a higher asking price. Here are some strategies to consider, along with tips on covering your costs.
Before You Begin
Decide how much you can realistically afford to spend on home improvements. Then, figure out which projects are most likely to improve your home's value, and by how much.
The potential increase in your home value depends on your house and the real estate market in your area. Any renovations you do should increase the value of the home, improve your quality of life, or both.
Projects to Consider
While projects like a brand-new luxury kitchen or bathroom might play a starring role on makeover shows, you might not get a dollar-for-dollar increase in value when it comes time to sell your home.
Here are a few projects that could offer more bang for your buck, based on data collected by the Journal of Light Construction in its 2024 Cost vs. Value Report.
Replace your garage door
The JLC found that this project offers the highest ROI, recouping an average of 193.9% of its cost nationally. If your home has a garage, it’s worth considering this upgrade. Not only will a new garage door give your home a more polished appearance, it’ll make using the garage easier for prospective buyers.
Install a steel front door
To give your home greater security and a fresh look, consider replacing a wood or other entry door with one made of 20-gauge steel. When you sell your home, you could recover the cost of this improvement to the tune of 188.1%.
Give your home a manufactured stone veneer
The outward appearance of your home could make a huge difference in how quickly your home sells and for how much. Replacing part of your home’s street-facing facade with a manufactured stone veneer could give your home’s value a boost of 153.2% of the amount you spent on the upgrade. Why manufactured stone? It’s durable, lightweight, and easily installed by a professional.
Simpler (and Cheaper) Ways to Increase Your Home Value
If the above projects aren’t your speed (or aren’t in your budget), you have other options to increase your home value. Here are a few ideas for cheaper projects, many of which you might be able to handle yourself—no contractor required.
Focus on walls
Painting is one of the more accessible home improvement projects. Choose colors and the right paint type for your walls and your needs (the professionals at your local hardware store can help). You can likely knock out painting a room over the course of a weekend.
Windows on the world
Replacing your window treatments is an easy way to improve the look of your home. You can find a variety of curtains, shades, and blinds on offer at a home furnishings store, along with the hardware to hang them.
Upgrade your floors
Here’s where you might need help from a contractor, but laying new carpet, tile, or laminate flooring can update your home in a big way. You might also consider refinishing hardwood floors that have seen better days.
Switch out light fixtures
A dated ceiling light fixture can bring an entire room down, so why not explore the options for something new? You could also hang ceiling fans. Bonus—they can save you (and your home’s future owners) money on cooling costs.
Boost curb appeal
Focus on making small improvements outside your house to increase your curb appeal. Easy and inexpensive ways to catch a potential buyer’s eye include:
Add fresh plants to your yard
Power-wash your siding
Keep your lawn mowed and your walkways swept
Deep clean
Never underestimate the power of a clean space. Even if you can’t afford some of the more ambitious ideas on this list, you can probably spare a weekend to shampoo your carpets, wash your windows, and scrub your baseboards.
Be Sensible When Financing Home Improvement Projects
Sometimes, simple upgrades aren’t enough to get your place ready for the real estate market. If your home needs repairs to pass an inspection or be appropriately valued, then you need to get those taken care of before you sell. These big-ticket items, like a new roof or a major plumbing upgrade, aren’t usually something easily covered by your savings.
You have options for financing. Approach them carefully.
If you’re already struggling with debt, it’s probably not a good idea to take on a home remodel. That’s especially true if the upgrades aren’t strictly necessary. A leaky roof should be addressed ASAP—but new carpet can likely wait. Don’t let a home improvement project tip you into needing debt relief.
If you have financial breathing room and feel comfortable financing a home improvement project to boost your resale value, here are a few options to consider.
Home equity loan
If you have equity in your home, you may be able to get a second loan and use that money to pay for the home repairs. If you take this route, consider carefully whether spending the money will result in an equal or bigger increase in sale price.
The payment on a home equity loan is separate from your mortgage payment. Make sure you have room in your budget for both until you sell the house. Take out only as much as you need to do the repairs, even if you have the opportunity to get a higher amount. The bigger the loan, the bigger the monthly payment and the more you take away from your profit in the sale.
Home equity line of credit (HELOC)
A HELOC is a line of credit guaranteed by your home (it’s also called a second mortgage). Once approved, you have a credit limit to use for a few years (called the draw period). Once the draw period ends, you’ll enter the repayment period and can’t borrow more.
The amount of your monthly payments depends on the balance you owe. The more you spend, the bigger the payments. And just like with a credit card, if you only make minimum payments, you pay more in interest.
Personal loan
Another way to finance larger home repairs is with a personal loan. A personal loan is usually unsecured, meaning it isn’t guaranteed by collateral. On average, personal loans tend to have higher interest rates than HELOCs.
Credit card
A credit card is a loan you might already have in your pocket. It’s not a good strategy for long-term debt because credit card interest is usually high. But if you can pay off your upgrades in a reasonably short time, a credit card could be the most convenient way to go. If you apply for a new card, look for one with an introductory 0% APR period.
Credit card debt is some of the most expensive debt out there. This isn’t a good strategy if you already have a balance that you’re working to pay down.
Freshen Up Your Home Without Falling In a Debt Trap
If your home looks a little dated, it’s perfectly fine to explore your options to freshen it up. Just don’t impact your finances negatively in the process.
Debt relief stats and trends
We looked at a sample of data from Freedom Debt Relief of people seeking a debt relief program during May 2025. The data uncovers various trends and statistics about people seeking debt help.
Debt relief seekers: A quick look at credit cards and FICO scores
Credit card usage varies significantly across different age groups, reflecting diverse financial needs and habits.
In May 2025, the average FICO score for people seeking debt relief programs was 593.
Here's a snapshot by age group among debt relief seekers:
| Age group | Average FICO 9 credit score | Average Credit Utilization |
|---|---|---|
| 18-25 | 574 | 81% |
| 26-35 | 580 | 80% |
| 35-50 | 586 | 77% |
| 51-65 | 593 | 74% |
| Over 65 | 611 | 68% |
| All | 593 | 74% |
Use this data to evaluate your own credit habits, set financial goals, and ensure a balanced approach to managing credit throughout your life.
Credit card debt - average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).
Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to May 2025 data, 88% of the debt relief seekers had a credit card balance. The average credit card balance was $16,327.
Here's a quick look at the top five states based on average credit card balance.
| State | Average credit card balance | Average # of open credit card tradelines | Average credit limit | Average Credit Utilization |
|---|---|---|---|---|
| District of Columbia | $15,789 | 7 | $24,102 | 86% |
| Arkansas | $14,216 | 9 | $28,791 | 78% |
| Oklahoma | $14,158 | 9 | $27,261 | 78% |
| Alaska | $19,315 | 8 | $25,731 | 77% |
| Ohio | $15,397 | 8 | $26,156 | 77% |
The statistics are based on all debt relief seekers with a credit card balance over $0.
Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.
Regain Financial Freedom
Seeking debt relief can be the first step toward financial freedom. Are you struggling with debt? Explore options for debt relief to regain control of your finances. It doesn't matter how old you are or what your FICO score or credit utilization is. Take the first step towards a brighter financial future today.
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Author Information
Written by
Ashley Maready
Ashley is an ex-museum professional turned content writer and editor. When she changed careers, she was finally able to focus on turning her financial situation around. She went from deeply in debt to homeowner in two years. Ashley has a passion for teaching others about better living through better money management.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
What is the average personal loan interest rate today?
Personal loan interest rates average lower than credit card interest rates, and higher than auto loan or home loan rates. The range for personal loans often falls between 8% and 35%. However, economic conditions change frequently, so the best way to find out about rates is to ask for quotes. To get a sense of what interest rate you might qualify for, talk to lenders who do a soft pull on your credit, which doesn't hurt your score.
What is the lowest credit score to buy a house?
Some people get a mortgage with a 500 credit score, but such cases are relatively few, not least because you need at least a 10% down payment to get approved. That 500 score is for an FHA loan (a loan guaranteed by the Federal Housing Administration). If you can scrape together only a 3.5% down payment, however, the minimum credit score is 580. Most mortgages require a 620 or higher credit score.
The credit score cutoff for a VA loan (U.S. Department of Veterans Affairs) or a USDA loan (U.S. Department of Agriculture) is set by the lender offering the loan. It could be anywhere from 580 to 700.
Can I buy a house after debt settlement?
In most cases, debt settlement does immediate and sometimes extensive damage to your credit history and credit scores. You’re likely to have difficulty getting a mortgage immediately after debt settlement. However, credit scores tend to climb after graduation from a debt settlement program. The best way to rebuild credit over time is to avoid credit card debt and pay all of your bills on time. If you do those and you avoid applying for new credit accounts, you’ll be in a better position to qualify for a mortgage in the future. It may not take as long as you think.
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