What’s on your to-do list this summer?? If you have a home improvement project in the works, it could actually pay off in the long run.
“Doing needed (or desired) renovations in your home can help bring its value up,” said Chris Busching, National Renovation Manager for TowneBank Mortgage. “If your kitchen that has appliances and cabinets from the 80’s is being compared to a kitchen that has been upgraded in the last few years, you can find your value being much less when the appraiser compares your home to the one that sold next door.”
Plus, renovating your home could be a better investment than moving and buying a new home. “Many times it is cheaper and easier to do an addition or renovate the things you don’t like about your home instead of moving and purchasing a brand new one,” said Chris.
In a recent study by Remodeling Magazine, they ranked the cost and resale value of various home remodeling projects. While cost is something to keep in mind, it’s important to know that you could gain back a significant portion of the money spent by adding to your home’s equity.
Check out the top 4 projects on our list below:
- Insulate your attic with fiberglass
Cost recovered: ~105 percent.
Blown-in attic insulation loses its insulating value over the years and needs to be reinstalled to be effective. Without adequate insulation, your homes heating and cooling system will have to work overtime and will lead to higher energy costs. This may not be something that potential buyers will see, but it will certainly help on your monthly energy bills by helping you better control your heated or cooled air.
- Minor kitchen remodel
Cost recovered: ~80 percent.
The best way to spruce up your kitchen without a full renovation is to replace countertops with a solid surface material ie: Granite, Quartz or some other man-made product. While marble is beautiful, it is the most porous and therefore tends to stain. Quartz is a great countertop material because it won’t stain and doesn’t require any sealing or on-going maintenance. A new backsplash and updated cabinet hardware will help transform your kitchen. Not only will buyers like the upgrades, but you will probably get 75-80% back in the value of your house.
- Deck Addition
Cost recovered: ~70 percent
Outdoor living spaces have become very popular. Any amount of work you put into your backyard will be worth it in the end. Decks with a composite decking material are more expensive upfront, but require very little maintenance and lasts much longer than wood. Outdoor fireplaces and paver walkways help tie in landscaping and make for an inviting space.
- Bathroom remodel
Cost recovered: ~ 65 percent
All bathrooms are different in size and types of fixtures. The best thing to do is to update all the fixtures. The toilet, sink, faucets and light fixtures. A fresh coat of paint and a new framed mirror is typically all that’s needed to bring your bathrooms up to par with comparable homes in your neighborhood.
Other Renovations yielding a high cost to resale value ratios include:
- Basement remodel:70 percent
- Entry door replacement (steel):90.7 percent
- Garage door replacement:97.2 percent
- Manufactured stone veneer:93.4 percent
- Siding replacement:77.6 percent
- Roofing replacement:75.9 percent
The data shown is based on a national average but could differ depending on your specific home and location. At the local level, it is best to obtain construction cost estimates from reputable local remodelers and talk with an experienced Realtor. To see how data in your region stacks up, visit www.costvsvalue.com.
Thinking about remodeling? Contact a loan officer with TowneBank Mortgage to learn about refinancing or renovation loans, or visit www.townebankmortgage.com/ resources/refinance-faqs to learn more about the refinance process.
Chris Busching is the National Renovation Manager at TowneBank Mortgage. He can be reached by phone at 757-285-7336 or via email firstname.lastname@example.org. (NMLS #609816)
“© 2017 Hanley Wood, LLC. Complete data from the Remodeling 2016 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.”
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