No matter how much you love your home today, there are always improvements that could be made.
Getting started is as simple as answering two key questions:
- What area or areas of your home do you want to improve?
- How will you pay for your renovation project?
Let’s look at which home renovations can help increase your home’s value, how to pay for them, and answer some common reno-questions.
Renovations that increase home value
You don’t have to choose home renovations based on the value they’ll add to your property, but this should be part of the decision-making process. This way, while you’re spending money you’re also getting something in return by way of equity.
There are five home renovation projects that will immediately increase your home’s value.
1. Kitchen remodel
Kitchens sell homes. It sounds cliche, but it’s true. Buyers often want to make the kitchen the centerpiece of their home, and if you’re not planning on moving, you might too!
A kitchen remodel can be as simple or as advanced as you want. A common ask from homeowners and buyers is an open space to entertain. Some of the details to focus on in this space include:
- Countertops and backsplash
Maybe you find that you can paint your existing cabinets and replace everything else. Or perhaps you want to tear your kitchen down to the studs and start from scratch.
No matter what you decide on, the end result will make you a happier homeowner while also boosting your property’s value.
2. Bathroom remodel
You spend a lot of time in your home’s bathrooms — especially the master bathroom — so you want it to be as comfortable as possible. Just the same as a kitchen remodel, your creativity is your only limitation. Consider updating the following:
- Shower and/or bath tile
You may be surprised to find that only a few updates are needed for you to fall in love with your bathroom all over again.
3. Add a deck or patio
Your outdoor living space is every bit as important as your indoor living space. If you don’t have a deck and/or patio, consider installing one as weather allows.
And of course, if you have an old deck and/or patio, look into ways to upgrade it, such as updating the paint or staining.
Think about how you use the space and what would add to your enjoyment. Perhaps you want an awning to provide shade from the sun. Or you spend a lot of time grilling and want an accommodating space.
4. New floors
From people to pets, your home’s floors take a beating day after day. For that reason, you can’t expect it to last forever. Swapping out old floors for new ones will make your home more inviting and comfortable.
If it suits your style, consider flooring, such as hardwood, that’s designed to last a lifetime. Additionally, sometimes replacing the carpet can refresh the home’s space and make it feel like new.
5. New paint
A fresh coat of paint is one of the quickest ways to bring your home back to life. This holds true both inside and out. If you’re struggling to choose paint colors that match your style and decor, hire a design professional to assist you. There’s no shortage of colors to choose from, so research and patience are critical to making a confident decision.
How to pay for home renovations
It’s easy to get excited about a home renovation project, but there’s one detail that could bring you back down to earth: the cost.
Before you go all-in with your project, you must first set a budget. From there, you can decide how to pay for the renovation. Let’s dive into some of your options.
If you have enough cash to comfortably pay for a home renovation project, it’s often the best path forward. Since you’re not taking on debt, there’s no monthly payment. Even better, there’s no interest paid over the life of the loan.
2. Cash-out refinance
A cash-out refinance is a type of loan product in which you gain access to your equity with a lump sum cash payout.
Once you have the money in hand, you can proceed with your project. Since the cash out is part of your mortgage payment, everything is rolled into one. Many homeowners find this to be the most efficient and convenient way to pay for a renovation project.
There are many other types of loans to consider, such as personal loans and home equity loans. With both types, you apply for a specific amount of money and repay it over a predetermined term (with interest).
If you’re considering a loan, compare the process, finer details, and pros and cons of all your options. Personal loans, for example, often come with high-interest rates. Contact your lender or bank and ask about your options.
Frequently asked questions
Home renovations can be overwhelming if you’re new to them. Here are five frequently asked questions pertaining to home renovations.
1. How do I know which home renovation project is best?
This is a personal decision based on your wants, needs, and current condition of your home. If you plan on moving, take the added value of each option into consideration. If not, don’t rush to find an answer. Review all your options first.
2. How much will it cost?
Once you know the type of project, you can then contact local professionals to visit your home and provide a quote. Another tip is not to do everything at once. Focus on the renovations you want the most and tackle your highest priority ones first. You don’t want to have a home that’s half under construction when you’ve tapped out your budget.
3. Does it fit into your budget?
Review your financial circumstances to ensure that the project fits into your budget, both now and in the future. If you have any concerns, take a step back to reassess your approach.
4. Which renovations will increase your home’s value the most?
The five renovations above will increase your home’s value, but there are others to consider. Review local real estate listings to see how your home stacks up. Review recently sold listings to see what buyers found most appealing.
5. How long do you plan on staying in your home?
If you don’t have long-term plans to stay in your home, you may not want to invest too much in home renovations. It’s often better to focus on minor repairs and upgrades to make your home more appealing.
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