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What are your best bets for recovering the cost of home improvements? The answers might surprise you.
If you plan to sell your home, fixing it up cheaply may work against you. But don’t go overboard, either. People may not want to pay for extravagances, so keep changes simple.
If you’re remodeling the home for yourself, you still don’t want to overdo it. Keep the value of other homes in the area in mind. Your home’s value should be no more than 20% above the average. So a $15,000 kitchen renovation may be a better idea than a $30,000 pool, especially if pools aren’t common in your neighborhood.
The cost of home improvements is usually not regained in the home’s sale price. Redoing a kitchen may help sell the house, but don’t expect to get 100% of the cost back. Remember, it’s often standard upgrades, not fancy extras, that provide the best return on your investment. Here are six projects that are usually good value for your money.
Purchase new siding
Exterior siding was the winner in Remodeling magazine’s 2007 “Cost vs. Value” report, which compared a project’s construction costs to estimates of resale value. Fiber-cement siding replacement recouped an estimated 88.1% of the cost. It is very durable, and unlike wood and vinyl siding, it can hold a paint job 20 years. New vinyl siding was number three on the survey.
Add a deck
This came in at number two, with an estimated 85.4% recoupment value. Adding a deck is a fairly inexpensive way to increase living space. You can build a deck for $20 per square foot, rather than about $150 per square foot to add a new room.
Remodel the kitchen
Though it ranked fourth in the survey, many people think this is still the best improvement for its value. Painting, installing new countertops, and replacing cabinet and drawer handles are relatively inexpensive, but can make a big difference. However, if you plan to completely redo the kitchen in the near future, it’s not a good idea to spend much money on quick fixes now.
Upgrade to energy-efficient windows
Wood and vinyl window replacements earned about an 8-% recoupment value. However, replacing all windows can be more than $10,000. If saving money on utility bills is your goal, keep in mind that it may take years for the savings to cover the cost of the windows.
Improve the bathroom
Fixing up the bathroom is a reliable investment. A midrange bathroom remodel has an estimated 78% resale value, according to the survey.
Install crown molding
Crown molding is a simple, inexpensive upgrade with a big impact. You could add it to a room for less than $100.
Please call us, visit us online, or stop by our office for rates, terms, and other information on a Home Improvement Loan. And then start your project today!
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