Top 5 updates that build equity in your home
If you are a homeowner looking to update or redo a part of your home you will really want to focus on things that will bring the most bang for the buck. To often homeowners fall in love with a particular type of redo only to find (usually after spending a great deal of money) that it has not enhanced the value of their home and sadly sometimes even decrease the value of the home. Whether you are planning to live in your home forever or think that someday you might want to move here are the top 5 updates that build equity in your home listed in order of the highest return on your dollar-
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- Minor bathroom remodel-Most estimates show that it will cost about $10,500 to replace the tub, tile surround, floor, toilet, sink, vanity and fixtures. You will get back an average of $10,700 at resale, a recoup rate of 102%. But there are several smaller projects that improve the quality of your bathroom if you cannot afford a complete re-do. Home remodels state that if you can pipe a child's name on a birthday cake, you can re-caulk a tub. Be sure to use a softener to get rid of the old caulk. And a final note-fill the tub with water after you are done to stretch caulk while it dries. If your old tub is too large to fit out the door or you cannot afford a new one re-glaze it for a like-new finish. Typical costs of this project is only $300 to $400 dollars.
- Landscaping-Studies show that the average homeowner spends about $3,502 for landscaping and another $1,465 on a designer. But you can tackle this project for less. If you are not sure where to start local garden centers often offer free design services, or even ask the neighbors what works for them. If feel that complicated landscaping is not for you keep in mind you can have a beautiful lawn for not a lot of cash. Typically sod costs about 30 to 35 cents a square foot, so a 5,000sq. ft. yard would cost about $1,500 to sod. Be sure to budget for a delivery fee if you buy less than 1,000 sq. ft. of sod.
- Minor kitchen remodel-Real estate experts state that a minor kitchen remodel averages $14,913 and brings in $14,691 at resale, a recoup rate of 98.5%. This type of update to a kitchen covers 30 feet of re-facing for cabinets and drawers, a new wall oven, cook top, sink and fixtures, laminate countertops and resilient flooring. Keeping this in mind be sure to go for the minor remodel when your kitchen needs a cosmetic update and not a drastically different floor plan. If your home is worth more than $500,000 you can go with stone or trendy glass countertops since buyers in this price range will be looking for it. You can also save money by covering the old vinyl floor with a floor leveler so the old pattern does not bleed through. Keep in mind thought that you cannot put a second layer of vinyl on your kitchen floor if the sub floor is below grade concrete.
- New vinyl siding-Statistics show that the average national cost to replace 1,250 sq. ft. of vinyl siding is approximately: $7,239. The average return on dollars spent is a recoup rate of about 95.5%. In comparison using upscale, fiber-cement siding costs $10,393 and returns $10,771 at resale, an even better recoup rate of 103.6%. If you do not want to re-side you may want to consider at least repainting. When figuring how much paint you need keep in mind that a gallon of paint covers about 400 square feet of house. With paint costing about $25 per gallon this is a small outlay that can return big for you should you decide to sell your house. Using paint color cards take the guesswork out of choosing the right color combination for doors, trim and siding. It is crucial that if you think your house was painted before 1978 to test for lead before sanding or scraping.
- Attic bedroom conversion-The average attic bedroom in a two- or three-bedroom house costs about $39,188 and returns $36,649 at resale. The best recoup rate tends to be in the West: 105%; worst is in the Midwest: 82%. The price quoted here includes a 15' x 15' bedroom, a 5' x 7' bath with shower, a 15-ft. dormer, four windows and a closet. Be sure that you check to see if your existing HVAC system handle the load of another room. If it cannot you will need to factor in the cost of a second unit.
