Upgrades for homes - Paramount Equity®Home values are used to determine the maximum loan amount for residential properties. Most lenders will extend a loan based on an allowable percentage of a home’s value. In exchange for an ownership interest, a bank or mortgage lender might offer you a home loan. Certain upgrades that increase the value of your home might enable you to procure a more attractive loan.

Increasing the Value of Your Home

Some home improvements may be aesthetic or required for maintenance and repairs. Depending on your ultimate goals, you can select improvements that are aimed toward increasing the value of your home.

Home Valuations

Home values are typically subjective and based on a variety of factors. Banks frequently rely on home values from recent market activity, property assessments and appraisal reports. Most banks will hire a professional appraiser to check the value of your home. A licensed appraiser will visit your home to inspect, photograph and analyze comparable sales data from nearby properties. Certain improvements could greatly influence the value of your home.

Kitchen Upgrades or Renovations

Modernizing or enhancing the appeal of your kitchen might increase the value of your home. Kitchen upgrades are typically among the most desirable features for a homeowner. Some kitchen upgrades include high-end appliances, countertops made from stone and various flooring selections. A kitchen makeover would not be complete without new cabinets and lighting upgrades. You may significantly increase the value of your home after remodeling your kitchen.

Bathroom Upgrades

Bathrooms generally provide a place for a homeowner to relax and to focus on personal hygiene. A bathroom that appears inviting to others should be more desirable and command more value than an ordinary bathroom. Some upgrades to your bathroom could feature a sunken tub, Jacuzzi features, exotic tiles, elegant lighting and other elements. A remodeled bathroom could include therapeutic designs and certain spa features. Upgraded bathrooms should increase your home’s market value.

Adding a Deck to Your Home

Improvements made to certain exterior areas of your home could increase the property value too. A new deck, a patio or an outdoor kitchen might provide room for entertaining outside of your home. Value-added home improvements that are superior to comparable properties could position you to obtain a higher appraised value for your home.


If you are approved for a loan that utilizes 75 percent of your home’s value, you could borrow a maximum amount of $120,000 for a valuation that equals $160,000. However, you could borrow $150,000 for upgrades that increase the value of your home to $200,000.