“Whether to improve or move your home” is a difficult question to answer, but several cost-benefit calculations can aid you in making the right choice.
What do you have to do once your family grows too big for your house, or when the place’s quirks you once thought as so charming no longer seem attractive to you? Is it wise to improve or move? Here are a couple of tips that will help you decide.
Selling Has Gotten Easier
Sales of existing homes were at their maximum levels since 2006; the median home value hit $197,100 at 2013. Currently, it is taking just more than two months, typically, for houses to sell. If you have been hesitating on selling and are looking forward to the actual estate market to recover, then you could find it is already recovered in your region.
As you arrange your house for sale, think about what homebuyers would like to have right now. Showing that your house is weather-sealed is a huge selling point.
Improving Has Gotten Pricier
During the economic recession, spending on home improvement was reduced, and so contractors were eager to cut deals just to remain busy. Now, they are less disposed to negotiate on price and way too busy to take low-profit jobs. Additionally, the construction material cost could be going up. In a current survey by National Association of Home Builders:
- 65% of contractors were concerned about increasing labor costs
- 81% were concerned about increasing materials prices
As a universal rule, improving are priced less than trading up. However, it depends on the type of improvements you are doing. You can expect paying between $100 and $200, and extra per square foot for a major remodel or new construction, depending on the project scope and your area’s labor costs.
You have to make certain that you invest your cash wisely. Basically, you need to ask yourself whether or not your $50,000 bathroom remodel increases your home’s value by $50,000. Not likely. However, at resale, you could earn back some of the remodeling costs.
To assess what is right for a particular house, let the neighborhood or area be your guide. If there is any chance you’ll be moving within ten years, keep the improvements consistent with those of other homes on your block, or lose the cash when you sell. Do not discount your pleasure factor. If it will make you pleased to set up an in-ground swimming pool in an area without pools, then go for it.
For many, a home is the biggest investment they can make in their lives. So if the time has come for you to sell, it is wise to take steps to boost the return on this investment. We are going to discuss the various home remodeling projects that increase a home’s value.
Let’s start with Home Upgrades That Pay Off by Real Simple. Below are a couple of home improvements tips that are worth the investment.
Why it pays off: Paint provides dramatic results with little investment. If you decide to hire a professional to do the work, expect to pay $3,600 to $6,000 for the interior of an average American house (about 2,400 square feet). An exterior paint job will run $5,000 or more. Can’t decide on a color? Gerri Willis, the anchor of Open House on CNN and the author of Home Rich (Random House, $25, amazon.com), says that pale yellow homes tend to sell faster and for more money. Barbara Richardson, the director of color marketing for Glidden and a noted color-trend forecaster, explains, “Yellow is optimistic and inspirational. It gives people joy and the sense that brighter times are ahead.”
Home Remodeling: 6 Improvements to Increase Home Value by House Logic also provide a couple more tips. Here’s an example of a home improvement that pays off.
“New Garage Door
No surprise that a garage door replacement project made it onto our list of all-time winners — a new garage door provides a big boost for your home’s curb appeal at a relatively modest cost. That’s especially good news if you’re thinking about selling your house.
A project that replaces an older, two-car, embossed steel door has a current cost of about $2,300, according to the “Remodeling Impact Report.” If you sell, you can expect a healthy ROI of 87% on your investment.
There are options galore, too. A host of factory-finish colors, wood-look embossed steel, and glass window insets are just some of the possibilities that’ll give your doors bankable personality.”
The article entitled Top 15 Home Updates That Pay Off by HGTV also offers new tips on the home improvements that boosts your home resale value. Below is a detailed information on a bathroom remodel.
“Minor Bathroom Remodel
Average return at resale: 102 percent
It costs about $10,500 to replace the tub, tile surround, floor, toilet, sink, vanity and fixtures. You’ll get back an average of $10,700 at resale, a recoup rate of 102 percent.
If you can pipe a child’s name on a birthday cake, you can re-caulk a tub. Use a softener like CAULK-BE-GONE to get rid of the old caulk. Fill the tub with water after you’re done to stretch caulk while it dries.
If your old tub is too large to fit out the door, re-glaze it for a like-new finish. Cost: $300 to $400.
Remove dated wall coverings and apply a fresh coat of paint. For damaged walls, spray-on texture provides quick coverage.
Replace old shower doors or remove them to add the illusion of space.
NOTE: ROI values and remodeling costs are subject to change.”
But if you want to go into further details and discover more home remodeling projects that pay off, you can check out our pages and see a lot of useful information.