Are you ready to renovate your home?
First, decide why you are renovating your home?
Is your HVAC system more than 15 years old? If the answer is yes, you may not have a choice but to install a new energy-efficient air conditioning and heating unit. You will not want to live in your home in August when the sun is pushing the mercury past 100 with a broken AC unit.
Or are you trying to make the house more livable, more beautiful and, of course, more valuable.
Two of the most popular renovations a homeowner can make to add value to their homestead is a kitchen or bathroom upgrade.
U.S. News & World Report investigated “which home remodeling projects are worth your money?”
Interestingly, the biggest ROI is installing the right front door which “on average adds 96.6 percent of the amount you spent to the value to your home.” U.S. News attributes the ROI stats from Remodeling magazine’s annual Cost vs. Value Report for 2014.
“But “it has to be the right front door,” says Steven Aaron, owner of the Steve Aaron Realtor Group at Keller Williams Beverly Hills and one of the protagonists of the HGTV series “Selling LA.” Keep in mind that sometimes painting the existing front door provides the same payoff.”
One mantra that is repeated is to make sure you do the right renovation for your home. If you are looking at your ROI when you eventually retire and downsize, then adding a $50,000 kitchen to a $100,000 home is not the right decision to make.
“As a general rule, look to spend about 25 percent of the home’s value for a new kitchen and 12 percent to 15 percent for an updated bathroom,” says David Pekel, president and CEO of a construction company and master certified remodeler in the U.S. News article.
Renovations with the best ROI include:
Entry door replacement
New garage door
Minor kitchen makeover
Renovations you want to avoid because of their ROI include:
New home office
Backup power generation
Master suite addition
Remember, you are living in your home. If you want a new master bedroom suite or an up-to-date home office, that is a good reason to move forward with these renovations.
Throughout the years bathroom and kitchen remodels are very popular amongst homeowners. But take note that a minor kitchen renovation has an 82.7 percent ROI. Similarly, instead of a complete bathroom remodeling project that could cost $15,000-$30,000 or more, check out bathtub refinishers and look for articles on how to update your restroom on a budget. You may find yourself very pleasantly surprise.
Let’s take a look at DIY Network’s “10 Investments to Boost Your Home’s Value” which differs from Remodeling magazine’s cost versus value analysis.
Matt Blashaw, host of DIY Network’s Money Hunters, and Nicole Curtis, host of Rehab Addict, offer top 10 renovation projects:
Basement or attic
Removing the paneling and popcorn
Engineered or real-wood floors
Front yard makeover
Both Matt and Nicole offer common sense suggestions to their top 10 list.
For the bathroom, Matt writes: “You don’t have to go crazy: Install new fixtures, re-grout the shower, add crown molding and brighten up the room with some paint. I really like the new textures they have for wallpaper nowadays. Yes, you heard me: wallpaper. A little texture can make a bathroom go from a plain Jane to a beauty queen. Just a few little improvements in a bathroom can be a really smart way to spend your money.”
If you have an old bathtub you might consider hiring a professional bathtub refinishing company instead of spending thousands of dollars on an extreme bathroom remodeling projects that includes installing a new one.
You can renovations plans for the top 10 that run from the ostentatious makeover to shame your neighbors into spending more to cost effective projects that will give you the right balance between “I’m living in this home and I want to enjoy it” to “How can I add value to this investment that will help me when I ready to sell.”
It is your home, your choice, your money.
You might want to hire a licensed home inspector to give your house a thorough inspection to help you decide which renovations are necessary and can’t be put off and which ones are personal choices and, to the extent you choose, will add value to your home when you decide to sell.