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PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlX3ZpZXdwb3J0X2RldGVjdGlvbi5qcyI+PC9zY3JpcHQ+PHNjcmlwdCBhc3luYyB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPm15ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF8wJyk7PC9zY3JpcHQ+=Carrie Frillman is a Chicago-based freelance writer and content strategist whose work has appeared in Chicago magazine, Huffington Post, Patch, DNAInfo Chicago and the Daily Chronicle in Dekalb, IL. She's won numerous awards from the Illinois Press Association, the Illinois Associated Press Editors Association and the Northern Illinois Newspaper Association for her enterprise and spot news reporting. She can be reached at cfrillman@gmail.com.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.Timing is everything for homeowners looking to relocate. And if you purchased your digs prior to today’s less-than-ideal housing market, there’s a chance you’ll be living in them longer than you initially planned. Maybe you can’t — or don’t want to — trade the bargain mortgage rate you locked in for the current pricier ones. Maybe you refuse to settle for the below-market home value experts predict you may get if you sell now. Perhaps you want to strike while the iron’s hot by tapping into record levels of home equity. Whatever your reasons, staying put and updating your pad might be your best bet until the odds shift back in your favor.So, where do you start? Let’s explore how to increase home value by tackling renovation projects that are worth their weight in gold. Bonus: We’ll also tell you the smartest ways to pay for them.1. Invest in smart energyIf you’re looking for a smart use of your energy, don’t sleep on smart energy. Home inspectors attest that a little goes a long way on improving expenses, which makes your home more enticing to potential buyers.You can start small: Begin by fixing cracks around drafty doors, dated windows, and breezy sockets. Step up to sealing air leaks and adding insulation, which not only increases comfort and energy efficiency, but saves an average of 11% on your annual utility bills, according to the Environmental Protection Agency (EPA). Experts say zeroing in on the attic tends to yield the highest potential energy savings. Other favorable insulation efforts include basements or crawl spaces, ducts, and walls, in that order. You might also consider power moves such as installing Energy Star-rated windows to minimize heating and cooling costs — a swap that earns you a bonus green energy tax credit. Plus, some states offer lower-rate loans for home improvement projects that increase energy efficiency. You can also refinance with an energy efficient mortgage, which might help you get a lower mortgage rate.2. Step outside four walls It’s no secret that boosting your home’s curb appeal could help catch a potential buyer’s eye. The National Association of the Remodeling Industry (NARI) 2022 Remodeling Impact Report assessed dozens of home improvements based on outcomes like “homeowner happiness” and the likely dollar amount each project would add at resale. A Recovered Project Cost percentage was calculated by comparing that value to the estimated cost of each upgrade.For exterior jobs, two improvements resulted in a 100% cost recovery: roof replacements and new garage doors. Fiber cement siding and vinyl siding recovered 86% and 82% of their total expenses, respectively. A home equity line of credit (HELOC) can be a great way to finance a project like a new roof. A HELOC is a revolving line of credit, much like a credit card but with lower interest rates. Plus, if you use the HELOC for a project that significantly improves your home, the interest is tax deductible.3. Look inward for a more livable homeReal estate experts didn’t drag their feet to share NARI’s findings on the highest percentage costs recovered on interior projects: Refinishing hardwood floors yielded an impressive 147%, beating installing new wood flooring by 29%. Another lucrative bet: increasing the livable space in your home. Homeowners who finished their basements got an 86% return on their investment, while people who converted attics into living spaces earned back 75% of the cost. (A HELOC can also be a good option for financing these types of projects.)What to know about popular projectsThe notion of remodeling interiors often inspires ambitious overhauls of two popular spaces: bathrooms and kitchens. But neither ranked high on realtors’ list of comprehensive projects they’d endorse prior to selling, according to the NARI report.Full renovations in either area might be worth a closer look if homeowners’ priorities aren’t exclusive to boosting resale value — especially considering the most important result across the board was better functionality and livability. Bathroom renovations were more cost-effective out of pocket but yielded a slightly lower return than kitchens. See the below breakdown of what NARI uncovered about sweeping bathroom and kitchen upgrades.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 for compromise? Opt for specific enhancements in lieu of overhauls. Even a $5,000 kitchen spend could yield a 7% return in a sale, says Consumer Reports, so the key lies in cherry-picking improvements. Kitchen-specific examples include replacing aging appliances with new, efficient ones; adding a fresh coat of crowd-pleasing paint; working in a well-placed backsplash; or swapping Formica for granite countertops. For bathrooms, consider cost-effective core changes like modernizing wallpaper or paint, installing new light fixtures, and upgrading showerheads and faucets.Footing the bill for home improvementsYou’ve got to spend money to make money, and home improvements certainly require an upfront investment. Costs vary greatly, but most land between around $18,000 and $79,000, according to HomeAdvisor.Finding the dollars to fund your home improvement wish list amid lingering inflation and other shaky financial news can feel overwhelming. So, what’s the smartest source? Hint: It’s close to home. A decade of surging housing prices means homeowners are sitting — quite literally — on record levels of home equity that increased by $2.2 trillion from Q3 2021 to the same period of 2022, according to real estate data service CoreLogic. Homeowners can now leverage that money using home equity loans or HELOCs while retaining their low-rate mortgages. Dollar door No. 1: Home equity loansHome equity loans allow you to transform a portion of your home’s value into a one-time lump sum that you pay back over time. They’re a popular choice for repairs, renovations, and other expenses because they tend to be more affordable than alternate borrowing options, from both an interest rate and value standpoint. Home equity loans allow you to borrow a lump sum at a fixed interest rate. That makes them a good option for people who know the exact amount of money they’re going to need and want predictability when they’re paying the loan back. Homeowners are typically allowed to borrow up to 85% of the equity in their home. (You can calculate your equity by subtracting how much you owe on your mortgage from your home’s current value.) One thing to watch: Since you’re using your home as collateral, you want to be positive that you can repay the loan before taking it out.Dollar door No. 2: HELOCsYou might not want to take on the second mortgage payment that results from the single, upfront sum you get with a home equity loan. Enter another contender we’ve already hinted at: a home equity line of credit, or HELOC.HELOCs work similarly to credit cards. You can withdraw money, as needed, and pay it back like you would a revolving line of credit that accrues interest on the total borrowed. Keep in mind that the variable interest rates for HELOCs are lowest early on, during the draw period. That makes these a particularly prudent choice for people who can pay back the debt within a few years. Bottom lineThe state of today’s housing market is a stark contrast to the era of low pandemic mortgage rates. If you were lucky enough to cash in on rock-bottom rates or other housing incentives a few years ago, the bar is probably high for your next home purchase.They say “patience is a virtue,” so let’s hope weathering the storm pays off for those who wait. And just because you’re unable to move right now doesn’t mean you can’t make moves to propel your property value. Do your research, know when to choose a HELOC vs. a home equity loan, and be strategic. With fortitude and funding, you’ll find that a little goes a long way when it comes to future real estate success.Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at lauren.williamson@hearst.com.