You may have heard that housing sales are through the roof right now. And, refinancing mortgages and applying for home equity loans is just as hot.
This is obviously because interest rates are as low as we’ve seen in a generation, coupled with current events requiring people to utilize their homes as an office, a school, a daycare facility, inventory centers, etc. Some interest rates are now dipping into the 2% range!
If you want to take advantage of these housing events by remodeling, you need to know that not all upgrades are equal. Some renovations can help you sell your home or get the most out of your equity, while others won’t pay for themselves. You need to choose remodeling and renovations that will help you profit in the long run.
Here is a list of 7 “bang for your buck” renovations:
IMPROVE YOUR ENERGY EFFICIENCY – While not as sexy as a new basement or a great room edition, Remodeling.com offers that you can recoup 116% of the costs by simply insulating your attic. First-time buyers are particularly interested in homes that can help save them money in the long run so take a good look at your windows, water heater, and HVAC. Solar panels are hot items on buyers want lists and lenders realize their value, also. If you’re refinancing, consider using some of the savings you’ll reap from your usual monthly payment and reinvesting it into your home to save you even more money on utility bills.
CLEAN UP YOU EXTERIOR – Ah – curb appeal, the “first impression” of your home. Paint the front door. Fix the gutters. Update landscaping. But don’t stop there. Consider new garage doors or adding stone veneer to the foundation. Both are money makers when selling your home and add value when you’re applying for a refi or home equity loan.
BUDGET FRIENDLY KITCHEN UPGRADES – Kitchens are the heart of the home and a “wow” kitchen is almost always the difference between an average offer and obtaining maximum dollars. Eighty percent of homebuyers list the kitchen as their favorite room. Darin Goldy of Copper Creek Constructions tells us, “It always amazes me that customers will overlook other outdated items in their home as long as their kitchen is new and improved.” The same goes for homebuyers! You don’t have to spend a fortune because minor facelifts can help. Start with new appliances (they don’t have to be top-of-the-line to make an impact), upgraded countertops, or switch out faucets and hardware
BATHROOM REMODELS – Small room – Big Impact! Here’s where you can really make a difference. Regrout tile, caulk, and perhaps an old toilet. Mirrors and fixtures can become dated, too. Lighting is HUGE!
PAINT.(period) – Freshen up the interior with nothing more than a few gallons of paint. Again, Goldy offers his experience, “Paint lightens up rooms, hides defects and instantly makes the space feel clean and fresh.”
FIX THE FLOORING – Hardwood floors add about 2.5% to the sales price and appraisals. So either install new wood floors or refinish your current floors to its original pristine condition. Engineered Synthetic Wood Flooring is also a wonderful option. Often a less expensive choice, though not sacrificing in quality, durability, and appeal. Ease of install is also a very key aspect of these materials. Synthetics have appeal and quality that are proper for high-end projects as well. You have options! Also, make sure carpets are not worn and tile has well-maintained grout.
INCREASE THE FOOTPRINT – A home’s value is driven by the amount of livable square footage. Finish a basement, convert a deck into a sunroom, add a bathroom. While this is the most expensive of the “bang for your buck” options – it’s also one that instantly will increase your sales price and/or offer the most improvement for loans and equity.
If you’re not planning on moving anytime soon, then doing any of these projects will help you enjoy your home while you are still in it. Just do the work a chunk at a time and before you know it you have an updated home.