How to Improve Your Home in Today's Market
Penny is on her way to the home improvement store again, this time to pick up new fixtures for her bathroom. She and her husband, John, have been busy sprucing up their house this summer – but not so it will look good to potential buyers. The couple doesn't have much equity in their home (definitely not enough to make a profit), so they're feathering their nest and staying put.If browsing the real estate listings makes you cringe, knowing it could be a long time before you could ever sell your home, you're not alone. Many homeowners have underwater mortgages. But if you're able to make your payments and stay in the area, it might be a good idea to focus on how to turn the home you already own into the home of your dreams.
Spending on home remodeling is trending up this year, according to The Wall Street Journal, for the first time since 2006. But analysts say it's for a different reason than during the housing boom. Instead of people remodeling for resale, more homeowners are realizing they're "stuck" in their homes with little to no equity – and are trying to make the best of it. So they're making smaller improvements to increase the livability of their homes. Many of the projects that are increasingly popular are smaller in scale, like new tile, countertops, paint and insulation.
New Rules
The rules for remodeling have changed, and you can take advantage of the following ideas to revamp the home you own so it's a more inviting space.
Bathroom remodel: During the boom, the average cost for a bathroom makeover was $37,200,* and involved expanding the space and adding a jetted tub. Now you can expect to spend around $16,000* and update the space you already have. Or refresh on an even smaller budget with fresh paint, new fixtures and accessories.
Kitchen remodel: Back in the early 2000s, it was pretty typical to spend over $50,000* completely gutting your kitchen and adding more space, stainless steel appliances, granite countertops and cherry cabinets. Now, a more economical remodel is in favor. For around $20,000* you could add new energy-efficient appliances, remove a wall between the kitchen and dining area and add new flooring. Or give your kitchen a modest facelift with painted cabinets and new hardware.
Bedroom remodel: A master suite addition, a popular housing boom project, set homeowners back an average of $99,000.* The new remodeling trends point toward attic remodels, which average around $49,000,* and convert unfinished space into livable rooms. Or just give yourself the illusion of bigger bedrooms by cleaning out closets and decluttering.
Ready to Rethink Your Home?
Want to start remodeling your home to make it right for you? Contact American First Credit Union to discuss your loan options. Call 800/ 290-1112, Ext. 5092, or visit www.amerfirst.org for more information.
| * | Source: The Wall Street Journal, "The New Rules of Remodeling." |
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| Consider Cost Recouped If you want to get the most from your remodeling dollars when it's time to sell, the following projects, as reported in Remodeling magazine's 2009-10 Cost vs. Value Report, may reward you with a higher selling price.** |
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| Project | Cost Recouped |
| Entry door replacement (steel) | 128.9% |
| Attic bedroom | 83.1% |
| Deck addition (wood) | 80.6% |
| Minor kitchen remodel | 78.3% |
| Basement remodel | 75.4% |
| ** Cost recouped percentage based on national averages. | |
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Hiring a Contractor? Questions to Ask Not into do-it-yourself projects? A contractor can help you realize your home improvement dreams. But don't let working with a contractor turn into a nightmare. Here are some questions to ask when hiring others to work on your home:
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