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  1. PERSONAL FINANCE

Smart Ways to Increase Your Home Value

In a Strong Market, Here are Smart Ways to Increase Your Home Value
 Reviewed By 
Kimberly Rotter
 Updated 
Sep 24, 2025
Key Takeaways:
  • 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.

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 by the numbers

We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during August 2025. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.

Credit utilization and debt relief

How are people using their credit before seeking help? Credit utilization measures how much of a credit line is being used. For example, if you have a credit line of $10,000 and your balance is $3,000, that is a credit utilization of 30%. High credit utilization often signals financial stress. We have looked at people who are seeking debt relief and their credit utilization. (Low credit utilization is 30% or less, medium is between 31% and 50%, high is between 51% and 75%, very high is between 76% to 100%, and over-utilized over 100%). In August 2025, people seeking debt relief had an average of 73% credit utilization.

Here are some interesting numbers:

Credit utilization bucketPercent of debt relief seekers
Over utilized30%
Very high32%
High19%
Medium10%
Low9%

The statistics refer to people who had a credit card balance greater than $0.

You don't have to have high credit utilization to look for a debt relief solution. There are a number of solutions for people, whether they have maxed out their credit cards or still have a significant part available.

Student loan debt  – average debt by selected states.

According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).

Student loan debt among those seeking debt relief is prevalent. In August 2025, 27% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was $48,703.

Here is a quick look at the top five states by average student debt balance.

StatePercent with student loansAverage Balance for those with student loansAverage monthly payment
District of Columbia34$71,987$203
Georgia29$59,907$183
Mississippi28$55,347$145
Alaska22$54,555$104
Maryland31$54,495$142

The statistics are based on all debt relief seekers with a student loan balance over $0.

Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.

Tackle Financial Challenges

Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.

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Author Information

Ashley Maready

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.

Kimberly Rotter

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.

Frequently Asked Questions

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 get a mortgage after debt settlement?

In most cases, debt settlement has a negative short-term impact on your credit history and credit scores. You may have difficulty getting a mortgage immediately after debt settlement. However, your credit scores could go up after you complete a debt settlement program and become financially stable. If you avoid debt, pay bills on time, and rebuild your credit scores, you could eventually be able to qualify for a mortgage. And it may not take as long as you think.