With even the CEO of Bank of America recently declaring that homeowners should not treat their homes as an asset due to declining home values, careful attention must be given these days to every dollar put into your home.
This is especially true when you plan to sell your home. While it's true there are certain renovations that are sure to add to the home's value, other remodeling projects will create a real-life money pit.
Thus, give thoughtful consideration to any upgrade you may want to make to your property in order to enhance your home's appeal to would-be buyers, cut the time it takes to sell -- and perhaps even get more cash in hand when you do sell.
"More and more, homeowners are coming to us looking for ways to increase the resale value of their homes," said John Bottone, President of JL Bottone Signature Homes & Renovations of Green Brook, N.J., one of the premier residential builders in New Jersey and surrounding areas. "And we emphasize that while some projects will provide terrific payback, others will be just the opposite. So it's important to decide carefully, based on a number of factors."
Bottone suggests that along with the help of a reputable contractor, a great place to begin your research is the "Cost vs. Value" report published annually by the National Association of Realtors (NAR) and Remodeling magazine. The report provides a synopsis of the top projects, average costs and their average rate of investment return at resale. And while these can vary depending on where you live, as the report alludes to, there are five general upgrades that can enhance the value and sale of your home:
Upscale Siding (New Fiber Cement) Replacement
This is an easy one, as siding generally has the best cost vs. value, and gives a first impression in defining a home's condition (accurate or not). Buyers notice this. And it will also improve a home's insulation value.
Average payback: 103.6 percent of cost.
Midrange Bathroom Remodel
Generally speaking, if you have a bathroom that's at least 25 years old with moderately priced fixtures, a double-sink vanity, a ceramic-tile floor and vinyl wallpaper, remodeling provides a sound investment. Up-to-date bathrooms also make for a great first impression.
However, it's easy to go overboard with a pricey imported soaking tub and ultra-expensive fixtures, for example. Keep your remodeling choices tasteful to ensure they provide a mass appeal to prospective buyers.
Average payback: 102.2 percent of cost.
Minor Kitchen Remodel
Appraisers give extra credit to house with updated kitchens. And so do buyers.
Home buyers often seem to gravitate to the kitchen first when looking at a house, as the kitchen has become the focal point -- the "gathering place" -- of so many homes.
But like your bathrooms, be careful not to go "over the top." Granite countertops and top-of-the-line stainless-steel appliances in the average home may not provide the return you're looking for. In fact, you'll likely lose money.
Instead, plan a functional makeover. For example, new cabinet doors and drawers (with cabinet boxes left in place), a moderately priced wall oven, cooktop, countertop, sink and faucet and resilient flooring.
Average payback: 98.5 percent of cost.
Midrange Siding Replacement
This is a more modest variation of the aforementioned upscale siding project, utilizing vinyl siding and trim.
And this provides for instant curb appeal, as new siding cleans up a house quickly. But be sensitive to the neighborhood. For example, if you live in a historic or upscale area, vinyl will not fit in with the traditional wood siding.
Average payback: 95.5 percent of cost.
Attic Bedroom Remodel
This project -- converting unfinished attic space in a two- or three-bedroom house into a finished bedroom and bathroom with shower -- can be quite expensive, and thus, better suited for the homeowner who plans to live in the house for another five to 10 years before selling.
But in the long run, this addition adds significant value to your home because it creates brand-new living space, and isn't just a cosmetic improvement.
Average payback: 93.5 percent of cost.
While these are generally considered to be the "Top 5 Bang for your Buck" projects, there are many others that provide significant return on a home's resale value:
· Upscale bathroom remodel (93.2 percent)
· Major kitchen remodel (91 percent for midrange, 84.8 percent for upscale)
· Deck addition (90.3 percent)
· Basement remodeling (90.1 percent)
· Window replacement (89.6 percent)
· Bathroom addition (86.4 percent for midrange, 85.8 percent for upscale)
· Roofing replacement (84.7 percent)
· Family room addition (83 percent)
· Master suite addition (82.4 percent for midrange, 80.1 percent for upscale)
· Home office remodel (72.8 percent)
Remember that remodeling is never going to provide an instant return, so don't lose sight of the fact that you must also live with these renovations.
So give well-researched consideration to finding that happy medium between improving the way you live in your home now, while envisioning a future resale, and you'll be making sound financial decisions for both today and down the road.
Author Resource:
JL Bottone is one of the premier builders and renovators of signature homes in New Jersey, and the immediate surrounding area. For 3 generations we've been creating a true living experience for countless satisfied homeowners, fitting any lifestyle in the process with our attention to detail, creativity and customer service. We treat every job like it's our only job, and the proof is in our quality of work. For more information, visit www.jlbottone.com, e-mail info@jlbottone.com, or call (877) 552-6886.
![[Valid RSS feed]](http://www.look4articles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
![[Valid RSS feed]](http://www.look4articles.com/images/rss.jpg "XML Feed For RSS")