Tag Archives: return on investment

Interior Home Repair: Investing for Resale

Are you thinking about reselling your home? Whether it’s for now or you are planing ahead, it’s always a smart decision to invest in interior home repair. Practical (rather than aesthetic) remodeling projects demand the highest return on investment, and home repair is no different. It goes without saying that a dilapidated house will turn away potential buyers. Optimism in the housing market notwithstanding, make sure you’ve left nothing defective when you’re preparing your home for resale.

House Sellers’ Guide to Interior Home Repair

Home repair is important regardless of your plans to sell your home. However, putting it on the market should make repairs even more salient. Here are 10 top-priority projects to work on before you nail the “For Sale” sign into the lawn.

Basement

Wet basements are a common problem in rainy, humid South Florida. Make sure your basement is properly insulated and your runoff is far away from your house to prevent any leaks into the downstairs.

Circuit Breaker Safety

Making sure your circuit breaker is (a) correct and (b) properly functioning is not merely a matter of safety, but also law. Ground-Fault Circuit Interrupter (GFCI) outlets, which disconnect unbalanced conductors, are required in all residential bathrooms and kitchen countertops, so make sure you have one.

Drywall

Being one of the most obvious interior home repair concerns, holes or cracks in the wall are seldom unattended to. Nevertheless, it bears mentioning to scour your home for any damaged drywall that potential buyers may notice.

Electric Power Panel

No home inspector worth his or her salt will skip over your house’s electric power panel, so make sure it’s clean, free of broken fuses, etc. You may even want to consider upgrading your panel and factoring it into the resale value.

Garbage Disposals

Garbage disposals pose a major problem if they are not working properly. Even if it is working, make sure your disposal is also clean and there are no foul odors emanating from it. Don’t try to run any thin films (such as potato skins), and clear away grease with a simple vinegar and baking soda solution.

HVAC

With South Florida being as hot and humid as it is, you can be sure that both buyers and inspectors will investigate your air conditioning system. Hot temperature will be the first thing they notice upon entry, so invest the time into this interior home repair immediately.

Paint

Any paint that is cracked, faded, or discolored will greatly reduce the appeal of your home and should be attended to as soon as possible.

Plumbing Leaks

Leaking faucets and fixtures will cause odors and also lead to mold if they are in dark, secluded areas. Since most pipes are within the walls of your home, consider at least getting an inspection by a professional plumber.

Waste Lines

There are also sewage lines that run outside your home: namely, waste lines. Make sure your lets are draining and your septic tank is not leaking. If you have a drain snake on hand, use it to unclog anything that is obstructing the waste lines’ flow.

Water Heater

Lastly, ensure that your water heater is free of any sediment and is properly doing its job. A particularly important task will be replacing the sacrificial node of your water heater, and don’t hesitate to call a professional if you cannot fix your heater on your own.

Home Additions: Things to Consider

Like anything else in life that is fresh and new, home additions can be incredibly exciting. Whether you live in a model or custom home, there is always more to be done. With this said, it will also be worthwhile to take certain factors into account before you go through with building your addition — there are financial, logistical and practical matters to consider.

Planning & Design

First, you must be specific about what you want in your home addition. You will need to have a good idea of the size and scale of your project for the next step. And, in any case, the remodeling process will go much more smoothly if you are specific about your wants and needs. Here are some suggestions:

Your addition should add to and compliment your existing house, not contrast with it. Be consistent not only with size and color, but also with style and overall design.
In determining size, it’s a good idea to envision what you will do with your addition once it is completed. Look around your existing rooms and survey their use of space and how they are furnished.
Work with a professional architect/contractor. No matter what, there will usually be things you haven’t considered, and it never hurts to get professional advice.

Return on Investment

While no doubt a powerful, visceral experience, you should ultimately be getting the best bang for your buck from home remodeling. Economic conditions pose a major obstacle to getting a proper return on your investment. Unless you are completely willing to bear that cost, you should think twice about building a home addition.

Some things to consider here are:

Comparable market values: This is often difficult to ascertain, as no two homes are exactly alike. Nevertheless, do your research and talk to your contractor. Keep in mind that your comparison should control for location and size. Do you know anyone in your area with a home addition of similar scale? How much did it raise the market value of their house?
Funding: How you are going to fund your remodeling project is a huge factor to consider. This is important not only for you, but also for the future buyer of your home. How is the market looking right now — what is the prime rate, and what kind of home equity loans are available to you? How does your own mortgage compare to what is currently available?
- Your Mortgage Rate < Available Mortgage Rates – If you’re paying less interest on your mortgage, consider taking out a home equity loan (assuming your credit is good).
- Your Mortgage Rate > Available Mortgage Rates – If you’re paying more interest on your mortgage, you should definitely be considering refinancing.

Convenience

Finally, how convenient will this project be for you? All people can be fickle, reneging on something they have already committed to. Don’t be insulted — we are all guilty of it! but make sure you have the time and patience that are necessary to see your project through from start to finish. If you have any big plans or don’t want too much disruption in your house, then you may want to hold off on your home addition (at least temporarily). Don’t worry, though. It will always be there when you want it!

Home Remodeling in 2015: The Best Bang for Your Buck

We’ve made our predictions about what custom home construction will look like in 2015, but the other side of the coin is home remodeling. Even after homeowners have designed and built their dream house, chances are they will need some kind of post-construction service. Whether it’s for repairs, additions or whole redesigns, these services serve the same function as custom home building: giving homeowners exactly what they want.

The State of Home Remodeling in 2015

More so than in the initial construction process, people are considering resale when they go about the remodeling process. Remodeling is an investment, a means to an end, whereas custom home building is an end in and of itself. This leads to the pertinent question of “which remodeling projects will offer me the best return on my investment?”

The Best Bang for Your Buck

The Chicago Tribune has actually already answered this question. Once home value appreciation, materials, and labor costs are factored in, only 5 home remodeling projects offer the best bang for buck:

20-gauge steel front doors
Fiberglass front doors
Garage doors
Mid-price roof replacements
Vinyl siding

The Worst Bang for Your Buck

What about the worst returns on investment (ROI)? In 2015, they are deemed to be:

2-story home additions
Bathroom remodeling (57% ROI)
Composite decking (72% ROI)
Major kitchen remodeling (69% ROI)
Master suite remodeling

Why the Difference?

Many will notice something peculiar about this report: the worst returns on investment actually have the highest demand, while the best ones are hardly appealing to the average homeowner. Actually, this is not an anomaly. The cost of these projects — the worst returns, incidentally the most luxury home remodeling projects — has long exceeded their value, and the lack of momentum in the real estate market has only made it worse.

Why don’t housing prices increase with gorgeous, luxury kitchen or bathroom remodeling? People simply aren’t interested in home remodeling without practical value, it seems. Contrast these with garage doors, for instance. Garage doors are a frequently needed home repair, but new ones delay this inevitable cost by a few years. The same can be said for roofing, siding and door replacements.

Doors, roofs and house siding may not be the most luxurious parts of remodeling, but they are the most pragmatic. At the same time, don’t let this discourage you from seeking out the luxury home you desire. You may get only a fraction of your investment back, but you cannot put a price on living in the house of your dreams.