4 Ways to Add Value to Your Home with a HELOC

1. Spruce up your outdoor space

For better or for worse, your yard says a lot about your home. It's the first thing people see when going by, after all. Landscaping projects can help give the right impression to friends, neighbors or potential buyers.

These projects can range in costs from a few hundred dollars to a few thousand depending on how elaborate you want to get and how much yard you have to work with.

For a quick and relatively inexpensive update:

• Add new plants
• Update your walkway
• Paint your front door to add a pop of color

These simple DIY changes can have a big impact on your home's overall curb appeal.

If you're more the "go big or go home" type, working with a professional landscaper is the way to go. They can help design and plant a pollinator garden, create a custom patio, plant a privacy "fence" with trees and more. It's the more expensive option, but that's exactly why you have your HELOC.

2. Give your bathroom a makeover

A few small but meaningful updates can make a major difference, and you can do many of them yourself:

• A fresh coat of paint
• Re-grout your tile
• Upgrade the faucets
• Replace dated lighting fixtures

A few hundred dollars later and you've transformed your bathroom from "blah" to "spa."

Of course, you can also enlist the help of professionals to handle a complete remodel. This is the more costly route, and it has the potential to have a longer timeline depending on what you're having done.

When you're considering your budget for a larger renovation project, keep in mind that surprises often come up (like a plumber finding wood rot behind the walls), so it might be a good idea to factor the unknown into your planning.

3. Cook up a dream kitchen

For most of us the kitchen is the heart of our homes. Keeping it in tip-top shape is naturally a top priority whether you're planning on staying in your current home for a long time or hoping to entice buyers.

Like other projects discussed here, you can give your kitchen a good, inexpensive DIY facelift with some fresh paint, updated cabinet hardware or new faucets.

If you're ambitious you could also take it up a notch and put in a new backsplash or even new flooring tiles yourself. But if you're looking at something big like completely reimagining the space, plan on calling in the professionals.

Even minor kitchen remodels can average about $15,000 and usually include new appliances, resurfaced cabinets, and possibly updated counters or flooring. Depending on what you and your designer plan, it could go a lot higher thanks to the cost of materials and labor. Fortunately, your HELOC is designed for projects exactly like this, so take a deep breath, work with your designer to keep costs reasonable and know you got this.

4. Turn a basic basement into your family's favorite room

Creating a finished basement can be a smart way to expand your home's footprint. But with estimates for smaller basement remodels coming in around $25,000, the cost isn't cheap. Do your homework first to make sure it's the right move for your family.

Make a list of "must have" and "nice to have" features to determine what you can and can't live without. For instance, a state-of-the-art home theater sounds cool, but chances are you can live without some of those bells and whistles.

Bonus tip: Let your HELOC handle the practical stuff

A new roof or furnace doesn't sound as fun as everything else on this list, but taking care of practical home improvements is essential. Treating your HELOC a bit like an emergency home repair fund can be a sensible way to cover expenses like:

• A new water heater
• Furnace upgrade
• Foundation repair
• New windows
• Solar panels
• Updated HVAC system

Some of those purchases may even have tax breaks associated with them, assuming certain criteria are met.