Upgrading Your Home May Be a Better Move

It can be exhausting when you consider all of the factors you need to take into account before purchasing a new home. The price, the deposit amount, the closing costs, the property taxes, the schools, the neighborhood, the commute, your family’s needs and more, all need to be considered in your purchase decision. Given that, the idea of upgrading or adding onto your existing home may sound more appealing.

The Ups and Downs of Upgrading

Not everyone can afford the cost of a new home or addition these days. With this in mind, I’ve been asked, "What is the best thing I can do to maintain the value in my home?" My answer has been to improve and preserve what you have. You can never go wrong when you upgrade the interior and exterior of your home. Investing in the upkeep of your residence not only improves its appearance, but the overall appearance of your neighborhood. It can be cost-efficient, simple, and relatively quick to do.

The pitfalls, however, are the living conditions while construction is going on—where will you cook or eat when you’re upgrading your kitchen or do you have a secondary bathroom if your other one is in demolition mode? What about having total strangers wandering through your house, or finding an architect, or a decent contractor, or deciding on finishes, and last but certainly not least, the cost. Does it still sound appealing?

There are certain improvements you can do on your home and be able to recoup some of the costs.

Adding Value to the Outside

Making improvements to the exterior of your home will not only bring you monetary value, but intrinsic reward as well when you proudly pull into the driveway of each day.

The first thing most people focus on when approaching your home is your front door. Painting or staining your door is a simple, low-cost improvement that can highlight your entrance without the costly expense of replacement. A couple of exterior urns with flowers on each side of your door can dramatically change the entrance way giving it an elegant appearance.

Power washing the siding or brick can dramatically improve the exterior appearance. Painting the fence, planting some colorful flowers, and mulching the trees in your yard can add curbside appeal.

If your entrance walkway is in disrepair, you can install brick pavers for a warm, but elegant, country look. There are many styles, colors, and shapes from which to choose.

Shutters are also a low cost item, pre-painted, easy to install, and can change the appearance and style of a plain-looking facade and enhance its charm.

Refining and Updating the Inside

As the saying goes, "beauty is only skin deep," so don’t stop with just the exterior improvements. The inside of your home is the heart of your home and there are many things you can do to add to its beauty and value.

Start off by adding a fresh coat of paint. You may want to consider some of the new color schemes available at your local paint or home improvement store. New carpet in the bedrooms or new rugs over freshly scraped and polyurethane hardwood floors in your living room and dining room can be a refreshing change.

Upgrade the interior trim and add ornamental crossheads above the doorways. If you desire more light, have a larger window installed where you feel the interior can be enhanced by exterior views. Maybe it’s time for new kitchen appliances or modern bathroom fixtures.

From new garage doors to installing new lighting fixtures, there are many things we can do to make our homes more appealing without spending thousands of dollars.

Adding Value Without Going Broke

Take a walk around your home and imagine what it would look like if you made a few minor changes. Make yourself a list in the order you feel that repair or change is immediately needed. These projects can be a lot of fun for you and your family and time together, well spent.

You may be one of the fortunate homeowners that is able to recoup all the costs incurred; however, understand that is the exception not the rule.

Take caution not to exceed the value of the homes in your neighborhood, or yours can become the most expensive and, therefore, possibly the hardest to sell. The type of enhancements and where your home is located are vital factors when considering your expected return on an improvement.

However, there are certain improvements that will return your investment more than others. According to an article in the Wall Street Journal and a recent survey conducted by the National Association of Realtors, here is what you can expect on average when remodeling:

• Kitchens and bathrooms will return approximately 82% to 90% of the costs of the improvement when the home is sold.
• Additions can return approximately 84% of the cost of construction.
• Attics that are converted into bedrooms can yield a homeowner about 75% of remodeling costs.
• Basements are on the lower end, approaching at roughly 69% of your return on investment.
• Decks are lower yet with, give or take, a 50% return on your cost.
• Swimming pools are thought by many to be a welcome financial addition to the equity value in a home; however, that is not the case in the northeast. In warmer climates such as Florida, a pool is much more of a welcome sight to many potential buyers and is seen as an important addition to many homes.

Another thing to remember in recouping some of the costs of your improvement is the design. Not everyone has the same taste; therefore, fads and styles come and go but a traditional design plan is both timeless, and a much safer investment.

Putting Your Needs First

If you do decide to stay in your home and upgrade, be sure to base the improvements on your family’s needs first and what will give the best rate-of-return secondary. Making improvements with the sole intention of increasing your home’s value is definitely not suggested. In today’s market, it can be a very risky role of the dice. Instead, make the changes in your home in order to live a happy, healthy, and more enjoyable life.

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Allstate Mortgage Company - 1260 N Dutton Avenue, Ste 274 - Santa Rosa, CA 95401
Office Phone: (707) 521-3434 ext 23 Fax: (707) 521-3448

We lend in the following states: California, Alabama, Alaska, Delaware, Hawaii, Iowa, Maine, Michigan, Nebraska, Pennsylvania



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