Remodeling Projects That Will Increase Home Value
As a homeowner, you have a fiscal responsibility to your family and yourself to maximize the value of your home. This would become more relevant if you are looking at the prospects of selling your home or trying to refinance the mortgage. Either way, you might want to seriously consider what you can do to boost the appraised and/or perceived value of your home.
Being Realistic About the Value of Your Home
Understandably, a person’s home becomes a reflection of who they are and what they like. The problem is it’s hard to find other people who think and feel the same way. When it comes time to sell or refinance your home, you have to be realistic about how what you like is going to be valued. You might like the color scheme in your bathroom and kitchen, but it might not go over well with prospective buyers. You might not mind the fact you pay extra in energy costs because you haven’t taken steps to make energy-efficiency changes. In this day and age, that’s a major problem for others who are used to watching pennies. The point is you have to set aside personal preferences if you want to successfully sell or refinance your home, and get maximum value in the process.
Updating Your Home
Yes, it’s going to take some time, effort, money and commitment to make your home all it can be. In order to derive as much value as possible, you might want to strongly consider updating your home, making it more appealing to others. No one is suggesting there is anything wrong with your tastes. They might sell just fine. If you are having trouble getting fair market value from your home, remodeling might be the answer to get you what you want or need. Additionally updated, neutrally appealing homes tend to sell much
Remodeling Projects That Will Increase Home Value:
The key to making wise decisions about remodeling is picking projects that will increase your home’s value in excess of the amount you spend on remodeling efforts. That’s tricky business. If you are serious about remodeling your home in order to increase its value, here are a few suggestions of projects that generally return more in value than the related costs.
The Bathroom – In houses that are older than say 10-years old, the bathroom is the first room that will tend to become outdated. A little discoloring of the tub, toilet and sink can be real drawbacks. Color schemes can create issues because they tend to be personal choices. Fixtures (faucets, counter-tops, lighting fixtures, etc.) can get a little outdated. New plumbing, fixtures, flooring and a neutral color scheme can bring the bathroom back to life, creating real value. The good news is bathrooms tend to be the easiest and least expensive rooms to remodel because of square footage.
The Kitchen – The kitchen is the one room in the house with a very distinct personality. The counter-tops, appliances, fixtures, cabinets, flooring and color scheme all combine to create a welcoming gathering place for friends and family to eat, converse, and laugh. In the modern family, much of the day to day living happens in or close to the kitchen! To increase its appeal and value, you want to avoid going too modern. After all, the kitchen still needs to match the overall decor of the rest of the home. The best way to get the biggest bang for your buck is with a new coat of paint (neutral color), new handle pulls, new appliances with modern energy-efficient features and updated counter-tops with back-splash behind the sinks. If the cabinets are getting a little banged up, you might want to consider having them refinished.
Room Additions – Strategically adding square footage to your home adds instant value. However, it only become advantages if you can get a positive return on the investment. Increasing the size of your living room or a bedroom usually nets very little to no value. However, a new bathroom, den or bedroom can make the home appealing to larger families who expect to pay more for housing. You would be surprised at how inexpensive it is to add a bedroom as long as you don’t have to interfere with the home’s overall structure. Just be sure to make sure any walls coming down are not load-bearing before you go randomly knocking down walls!
External Upgrades – First impressions are a big deal and the outside of the home is often forgotten about, and you want the outside of the home to look inviting. A new patio adds value at a reasonable price. Paint, reseeding of the yard and hard-scape updates are all worthwhile projects. Add welcoming touches like potted plants to frame the doorway and touch up a mailbox that may need repainting. However, some outdoor upgrades should be avoided. A pool seldom offers a good return on investment and should be avoided.
If you are not sure which remodeling projects will bring good value to your home, you might want to consider consulting with a local real estate agent. They are usually aware of what buyers want and should be able to offer meaningful suggestions. Often times realtors have an idea of at least small and relatively inexpensive fixes that can help the home to sell quickly and at a favorable price. In some cases you still probably want to take on at least a few remodeling projects as it can still increase the value of your home. Have your realtor help by picking the projects you should prioritize and how to make them count.