When you look around your home, really look, what do you see? Almost all of us will notice a few small projects that have been neglected or even one or two big ones we’ve been avoiding. You could be seriously risking your home’s value when you disregard necessary repairs, and by brushing aside the small headaches you just might be creating a much larger one.
No matter what the initial price when you purchased your home, the value of any property is only as good as its upkeep. Maintain your home’s value by maintaining your home.
Yes, there is always a cost to home improvement and the financing of a project is often as important as the project itself. Your best strategy is to weigh expense against return BEFORE you dig into any task.
So which projects are going to make the short list? Maintenance should be on-going, like it or not it’s a constant battle. Next work on function, health and safety. Care of things like plumbing, electrical, roof and foundation, heat and A/C, should never be deferred. Ambiance is nice and decorating your home is certainly satisfying, but if your roof leaks your eye-candy will quickly become an eyesore. Each time you consider a monetary investment in your home, take a moment to evaluate the return.
“Each time you consider a monetary investment in your home, take a moment to evaluate the return.”
If as a homeowner, you are considering selling your home, this step becomes even more crucial. The calculation is simple really. Ask yourself these three questions. What is the market value of my home as is? What will it cost me to make these improvements? The third question may feel counterintuitive, you’ll want to determine the price at which your home should sell. Don’t. Instead ask, What value will an appraiser give the property if it’s updated? Just because you spent $50,000 renovating your home, there is no guarantee (not even a strong possibility) that an appraisal will reflect the cost of renovation in the actual current value of the home.
How-To Better Invest in Your Home
Many Americans own homes that need a little work. Whether you need to revamp a few fixtures or totally renovate, you want to make sure you’re making the smartest decision for your style, and wallet. To help, HGTV host and real estate expert Egypt Sherrod offers the following home improvement insights, in partnership with LightStream.
Good bones add the most value. While personalization is important in creating your dream home, don’t overlook the less glamorous—but essential—elements. You may not get as excited about upgrading your HVAC units as you do about making over a bathroom. However, tending to projects that improve the functionality and systems in your house often lead to a higher ROI compared to aesthetic-focused ones.
Choose “timeless” over “trendy”. It’s easy to be tempted into the latest trends during home renovations, like shiplap walls and waterfall countertops. They may be hot right now, but could become dated very quickly. Remember how cool wood paneling and shag carpets used to be? Choose timeless, classic styles and easily updatable accessories that won’t cost a fortune to replace down the road.
Invest in your nest…without depleting your nest egg. Home improvements can be a smart investment that dramatically improve your quality of life. The key, however, is to stay within a budget that doesn’t become a financial burden. Many homeowners mistakenly use their entire savings to pay for a renovation, which can leave them without a financial emergency safety net.
Consider your financing options. Homeowners may opt to use credit cards for their projects, which can become expensive quickly, as balances with high-interest rates carry over from month to month. While a home equity line of credit can be a solution for some, these often take time to arrange, and many homes haven’t accrued equity to tap. But there is an option that can provide needed funds without sacrificing your financial well-being—a fixed rate, unsecured home improvement loan.
Source: SunTrust Banks, LightStream. Reprinted with permission from RISMedia. ©2019. All rights reserved.
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Bill Salvatore / Arizona Elite Properties
Your Valley Property Team
Residential Sales, Marketing, and Property Management
Founder: AZVHV Arizona Veterans Helping Veterans
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