** Proper Remodeling MAKES you money!
Remodeling your home properly can actually MAKE you money! New home construction costs are soaring, so there are certain financial gains that can be achieved from remodeling and existing home - and, these gains are greater than ever before!
Basically, remodeling adds equity and therefore capital gains that can be deferred until the home is sold. In addition, tax laws have made remodeling even more attractive to the investor by limiting the tax write-offs allowed on new investment property. The trick is not to overspend — your objective is to spend one remodeling dollar and build more than one dollar in additional equity in your home.
** Remodeling Mistakes Can COST You BIG Money!
Know the value of your home in its market. If you are in a neighborhood where homes like yours are only selling for $200,000, then spending $50,000 in remodeling is very unlikely to produce a positive ROI on the remodeling project.
Have a good honest independent appraisal done of your home and pick only on the projects that will increase the value of your home. Reasonably priced kitchen and bathroom remodels work extremely well. For these big jobs always use qualified professionals in the renovation. In many U.S. states virtually anybody can claim to be a remodeling contractor. These may not the people you want renovating your home! YOU want contractors with a verifiable history of successful projects and financial stability.
REMEMBER THIS: YOU assume financial liabilities when you hire a contractor. So, make them prove they are reputable. Did You Know … If a remodeling contractor performs work on your home but does not pay his supplier for the materials, the supplier can put a lien on your home.
** Go for Cosmetic Improvements!
These remodeling improvements include interior and exterior, painting, new trim, new flooring, cleaning up of unsightly areas, landscaping, and other items that damage the appearance of the home. Most people’s impressions of a home are made in the first 5 minutes, and are always related to how the home looks and feels.
Home marketing experts have long known the power of color and texture to influence the moods and perceptions of the buying public. That’s why so many plain products are sold in fancy packaging. The proper use of paint on a house can, in the first 5 minutes, influence a potential buyer to buy your home.
** Simple Painting Produces a Great ROI!
Painting your home inside and out is the cheapest and most productive cosmetic improvement you can make - colors… colors… colors…
This is what a fresh paint job does and why:
Makes the home appear clean and fresh…
Eliminates “old house” odors…
Covers patches and imperfections in walls…
Makes a room appear larger and brighter (if the color is right)…
Avoid these painting mistakes:
Only choose exterior colors that complement your neighborhood and the period flavor of the house…
Avoid interior colors that are too wild or bright. Allow accent pieces in the house to provide the bright colors.
** Curb Appeal - you have to get them in the door!
Simple Painting Produces a Great ROI!
Along with good exterior painting of your home, certainly spruce up the landscaping, but make it an improvement — not an investment!
No real curb appeal is possible without an attractive yard. Many older houses are overgrown with large foliage that obscures the house and produces a dark or dreary atmosphere. Trim large plants to expose your home. Add some small accent plants around the yard can make the yard appear “well groomed”. If your lawn suffers from poor upkeep or bare spots, consider rock or foliage gardens to cover the affected areas.
Whatever you do, don’t overspend on landscaping. A few landscaping dollars can go a long way. Excessive landscaping will not increase the value of your home a great deal. In fact, it can reduce home value if the buyer perceives hours spent in the yard grooming, cutting and pruning.
** Kitchens and Bathroom Must Sell Your Home!
So paint and landscaping got them in the door — now close the deal with the kitchen and bathrooms. Minor kitchen remodeling can be quite cost efficient and entail as little as new floor coverings and painting of the cabinets. But, a major kitchen overhaul can bring a greater return on investment than minor face-lifts. The idea is to produce more space, cleanliness, brightness, newness. Even new cheap appliances help produce what you are after.
Recent trends are toward lavish and spacious baths. The two-bath house has become a standard. Adding a second bath to a home may not return its full value, but it eliminates a major obstacle in selling a home. Because of the high cost of tearing out old fixtures and installing new ones, consider doing some of the work yourself. Tasteful decorating and a wise choice of fixtures will quickly add to the general value of your home without costing a small fortune. Estimating a remodeling project can be a real challenge, since many necessary repairs may be hidden behind walls and floor coverings.
Living with a remodeling project can be a stressful endeavor — Projects never go as smoothly as expected and invariably encounter delays. Plan for this and learn to live with it! Regardless of whether you do the work yourself or hire a professional, remodeling an occupied home can be challenging and dangerous. Be prepared for dirt, sawdust, interruptions of electrical and water service, noise and general inconvenience. Don’t under estimate the psychological toll this will take on your and your families’ personal life.
J Gilbert is writer for The ORBL Series of Home Remodeling an informative site dedicated to helping consumers understand what remodeling is about and how to find good remodeling contractors.
For specific information on ORBL tips on kitchen and bathroom renovations, see Kitchen and Bathroom Remodeling.
[tags]home remodeling, kitchen remodeling, bathroom remodeling, home improvement[/tags]