Home Renovations that Add Value
Home Renovations the Add Value
Home ownership is rewarding and often times, expensive! Spending on home remodeling and maintenance in the US has dramatically increased over the past 10 years. According to the Joint Center for Housing Studies at Harvard University, the residential remodeling market has reached a new annual high of $424 billion.
HGTV tempts homeowners with trendy remodels that make most of us want to grab a hammer and get to work. Not so fast! Before you get your hands dirty, you may want to look at home improvements that will actually add value to your home, especially if you’ll be looking to sell in a few years’ time.
Here are some changes you can make that add more bang for your buck:
- Minor kitchen remodel: If your dated kitchen is leaving you uninspired, a minor remodel will retain 80.5% of its value when it comes to selling, according to a Remodeling Magazine 2019 Cost vs Value Study. When we say minor, think cabinet refacing, appliance replacement, flooring and fixture upgrades. Avoid the temptation to go luxury on these details, unless this is your forever home. Luxury upgrades don’t add value, since it’s mostly personal preference.
- Siding Replacement: There’s nothing that will drive buyers away faster than siding that’s seen better days. Replacing siding not only adds curb appeal, but it also adds value, recouping as much as 75.6% at sales time.
- New Front Door: Speaking of curb appeal, a front door makes a lasting first impression. Replacing your current door with a steel entry door, which will hold up to 91% of its value.
- Hardwood Floors: Carpet is considerably less popular with buyers, especially in living spaces. Replacing carpet with hardwood or refinishing your current hardwood flooring will give you a 91% return on investment, according to the National Association of Realtors.
All these changes sound great, right? Paying for these improvements is the challenge. With the cost ranging from $1,200 to $22,000, most people don’t have that kind of money lying around. While paying in cash is always best, there are other financing options to help you get your projects moving.
- Home Equity Line of Credit: Use the equity in your home to finance these improvement projects. Pennian Bank offers a Choice Line of Credit with some unique features. Click here for details.
- Personal Loan: If you don’t quite have enough equity in your home, but can’t wait to start improvements, consider a personal loan. Though the rates tend to be a bit higher, they’re not as high as a credit card. With MinuteLender, you may qualify for up to $30,000. Click here for details.
Once you’ve got your funding secured, the fun begins! Happy remodeling!