How I Doubled the Market Value of My House

I was a sailor when I purchased my first home. When I told everyone that I managed to buy the house for only $40,000 they assumed it was doomed to forever be a delapidated dive. In reality, the house was structurally sound. I had obtained it so cheaply simply because the owner of 50 years was entering into a nursing home and the family was liquidating her assets. Fortunately for me, the roof was less than 5 years old and in great condition. Everything else, in my opinion, was cosmetic.

For starters, the windows were all single pane with a wood sash that had seen better days. Though an exterminator's inspection turned up no infestations, it was clear that at one time, the previous owner dealt with termites. While the windows were still in fairly decent condition, they made the house significantly less energy efficient.

The house had wood siding with peeling paint (which I suspected to contain lead), though largely cosmetic, this was definitely a concern.

The back porch posed an interesting dilemma as well. Atop the back porch, the previous owners had constructed a balcony with access from a bedroom upstairs. The problem was that because the balcony was built on what used to be a roof, the floor of the balcony was pitched. Additionally, some of the supports seemed to be rotting, posing a safety concern.

The outlets were the most frustrating of the problems, however. Every plug socket in the house was outfitted with only two prongs and outlets in the kitchen and bathrooms were not GFCI. Coupled with the fact that only the kitchen and dining room had ceiling light fixtures (every other room was lit with floor and table lamps), it was clear that I would need some electrical work done as well.

The electrical work was the least of my worries. Though inconvenient, after shopping around town, I was able to find an electrician who would upgrade the outlets, add ceiling fixtures and upgrade my service for around $1,800. However, siding posed a bit more difficulty. I contacted Sears and some of the other chain stores which offered siding installation. Sears wanted a whopping $25,000 to side the house, citing its size and the quality of their product. Even with the $500 coupon I had, the monthly payment on the financed siding would be well over $500 per month. I continued my search, adding windows to the mix. The fact that I was working at a glass factory became my saving grace. Because a large window manufacturer purchased glass from our company, I was able to secure a 20% discount on new windows throughout the house (including attic and basement windows). With purchased windows just waiting for an experienced glazier, I set out contacting every licensed contractor in town. My midnight romps through the yellow pages paid off. I was able to find a licensed contractor with favorable references who was willing to install the siding for $4,300 and the windows for an additional $2,000.

Before he could start, however, I needed to fix the back porch. I called a friend from the Navy who worked in the construction battalion at a base where we both served. For about $2,000 in materials (plus a case of Yeungling) they made the necessary repairs to the back porch and balcony to the satisfaction of the code enforcement officer and an independently hired building inspector. I might add, you could feel that the balcony was much stronger and with a level floor, I was then able to actually put furniture out there.

For around $10,000 I was able to make these repairs to my house. When I put the house on the market two years later, it sold for $82,000. A nice profit for a relatively low amount of work. While the situation may not play out so well in any situation for anybody else, I learned a few things I'd like to share with anyone hoping to increase the value of their house.

1. Renovating kitchens does increase the value of your house, but usually not more than you paid for the work. Before you go for a kitchen makeover, consider making necessary repairs and renovations which are more likely to increase the value of the house.

2. Check for discounts. Maybe you are a member of a club that gets a discount at the local hardware store. Maybe the company you work for produces or sells something you need for the renovation and offers a discount. Or maybe your old prom date went on to start his/her own contracting company and you've been meaning to reconnect for a long time now. Whatever the case, there are often discounts that we don't even consider, check every avenue before paying full price.

3. Look for connections. I had a friend who was a Navy Construction Worker. Maybe your wife's brother's roommate is a pretty good electrician, or your nephew's best friend is a plumber. Odds are you know someone who can help the cause and who may knock a few dollars off of the job because of a mutual friend or family member.

4. Be careful not to lower the value of your house. So you have a detached garage that you never use. You figure that knocking it down would provide with much more parking space than you had before. Careful now. Knocking down that garage could result in a decrease in your home's market value. In a case like this, consider converting the garage to a more usable space or building a better one.

Best of luck!