Home Renovations That Will Pay You Back

When it’s time to remodel, many homeowners head to home improvement stores like Lowe’s to buy the supplies they need to complete their home projects. It’s a smart idea, especially since the right projects can put more money back into your pocket.

However, home renovation costs can be substantial: The average bathroom remodel alone costs between $6,000 and $35,000, according to HomeAdvisor. Meanwhile, a kitchen remodel ranges from $4,500 to $50,000.

If you want to choose the best home renovations, here are several that will give you the biggest bang for your buck when the time comes to sell.

Remodel the Kitchen

“If it’s more than 15 years old, upgrading the kitchen floor, cabinetry and appliances to modern standards will net you more money during [the] time of sale,” said Joe Polyak, founder and realtor of Rise Homes in the San Francisco Bay Area.

Many families view the kitchen as the center of the home. So, minor kitchen renovations can drastically increase your property’s value — the Remodeling report showed a 65 percent national recoup on average. This renovation can also increase home enjoyment for the entire family.

If you have an outdoor kitchen that needs to be renovated, consider updating the appliances. For example, Lowe’s offers savings on high-quality appliances.

“Outdoor entertaining and grilling go hand in hand,” said Jule Eller, director of trend and style at Lowe’s. “So bring the heat, and fire up that backyard flavor with a modular grill. You can choose add-ons like a sink, side burners or refrigerator to create a complete outdoor kitchen.”

Still, renovators should take care not to go overboard with kitchen remodel costs. “Upgrading the appliances to a certain level of luxury — KitchenAid versus Bosch, for example — can significantly increase value,” said Polyak. “Be careful, though. You don’t need to put Wolf appliances in a condo in a blue-collar condo complex. That won’t add value.”

Build an Outdoor Deck

“This can be a fairly inexpensive project that can add a lot of value in the eyes of potential homebuyers,” said Polyak. Specific features tend to vary in popularity by geographic location, and the national average cost for this upgrade is about $10,000 for wood and $17,000 for composite materials, according to Remodeling’s report. Of that amount, a homebuyer can hope to recoup about 71% and 65%, respectively.

“In Arizona, people like a nice fire pit with a beautiful outdoor area. In the San Francisco Bay Area, they like a nice deck with landscaping,” he said. “You can hire someone to do the work, but depending on how handy the homeowner, this can definitely be a fairly inexpensive do-it-yourself project.”

Create a Paver Patio

You might also consider adding a paver patio to your home. “Building a paver patio or walkway is a simple way to make your landscape more inviting and define an outdoor living space,” said Eller. “Best of all, you can install the paving stones yourself. You can also integrate landscape lighting to add ambiance and dimension.”

Eller recommends purchasing 10 percent more blocks, pavers or stones than you anticipated. “The excess should account for breakage, the material you need to cut and replacements for future repairs,” she said.

Upgrade Lighting Fixtures

Most fixtures can be purchased for a few hundred dollars or less, but when you’re working with electrical wires, you’ll also want to make sure to bring in a professional. Most homeowners spend about $318 to bring in an electrician, which will increase overall remodeling bills, according to HomeAdvisor. Still, prospective buyers are likely to appreciate the enhanced lighting, making it one of the best home renovations on a budget.

You might also want to upgrade your outdoor patio lighting with string lights, lanterns, candles, outdoor table lamps or floor lamps to bring your patio to life. Or, perhaps you have a deck? You’ll probably want to upgrade those lights as well. The good news: It won’t cost you a lot of money at stores like Lowe’s.

“From setting a festive mood to offering a soft glow after dark, outdoor lighting is a great way to make your outdoors warm and inviting,” said Eller. “Check out these battery-operated LED step lights or these bronze solar LED post lights.”

Replace the Entry Door

Installing a new steel entry door has the largest cost versus resale value, according to Remodeling’s report. It’s about a $1,400 project that’s likely to boost your home’s value by the same amount.

Bold colors can always replace a traditional door like a bright yellow and high-gloss black. To make this change buy some inexpensive door and apply paint to it yourself. There are plenty of affordable door options you can find online.

Install or Repurpose Flooring

“Updated hardwood floors or new carpeting can help sell a home,” said John Bodrozic, co-founder of digital home management tool HomeZada. “But a lot of the determination of whether the project pays for itself depends on how much money people put into the project.”

According to HomeAdvisor, existing carpets can be cleaned for about $174, and the average hardwood refinishing cost is $1.50 to $4 per square foot. Installation of new flooring increases the cost: $1,583 for carpet and $4,397 for wood. However, you can reduce these sums.

“If you have the skill or are willing to learn, you can save labor costs if you can do some of the work yourself,” said Bodrozic. “If you do hire a contractor, make sure you get three to five bids and make it known to the contractors that they are competing for the business. Depending on the marketing conditions and timing of your project, you could save yourself some money.”

Upgrade to Energy-Efficient Features

“I’m noticing a big trend toward energy-efficient appliances, LED lights and tankless water heaters,” said Diana George, a vice president at Century 21 Real Estate Alliance.

“These products save homeowners money and contribute to a smaller carbon footprint.” A tankless water heater can be installed for about $4,200 in a 2,200-square-foot home, and LED converter bulbs can be bought for about $14 per light, said George.

You don’t have to wait until you move to reap the financial benefits that accompany an energy-efficient upgrade. A tankless water heater can cut a homeowner’s water heating bill by about a fifth each year. A switch from incandescent to LED bulbs, meanwhile, can save a homeowner a surprising $300 per year. Energy-efficient upgrades might not be the most exciting of home improvement projects, but they can have an almost immediate impact on a home’s overall bottom line.

Replace Vinyl Siding

It’s not everyone’s idea of a dream renovation project, but new vinyl siding can dramatically enhance a home’s curb appeal, which can make or break a homeowner’s prospects when selling on the open market.

Newer siding can also help curb heating and cooling costs and reduce occurrences of mold, fungus and mildew. New vinyl siding generally costs around $14,000 and will increase a home’s resale value by about $11,000, according to Remodeling.

Remodel a Bathroom

“Bath renovations are always worth the money invested,” said Karen Gray-Plaisted of Design Solutions KGP in Warwick, New York. “If the home has good bones and quality finishes, the home seller will reap most, if not all, of the cost.”

A homebuyer can expect to pay about $18,000 for a mid-range bathroom renovation and recoup about 65 percent, according to Remodeling. However, making smaller changes can also bring big rewards. “The impact a new light fixture can make can take a house from being dated to feeling new,” said Gray-Plaisted. “I find upgrading light fixtures in bathrooms and kitchens to be worth every penny spent.”

In the end, a home renovation choice is about more than just the value you’ll eventually recoup. Consider projects that will keep your home properly maintained, but also that your family will enjoy. A house is more than an investment; it’s also the place where your family will build memories for years to come.

Open the Floor Plan

An open floor plan is one of the more sought-after features for homebuyers today. However, older homes typically have many walls and narrow hallways, said Polyak. The good news is that it can be surprisingly inexpensive to knock down a wall and create a more cohesive space. An interior demolition costs about $3,000 on average, according to HomeAdvisor.

Even load-bearing walls can be removed, preferably by a skilled contractor who can then place a beam in the ceiling for support. Even with the added home renovation costs, this improvement can still add significant value to a home, said Polyak.

Paint the Interior

Most homeowners spend between $996 and $2,721 on home interior paint costs, according to HomeAdvisor. At that price point, it’s easy to recoup the cost when it’s time to sell. Even so, it might be worthwhile to consult a professional before selecting a color.

Still, professional advice doesn’t have to add to the cost of the project. Many national paint retailers like Sherwin-Williams and Benjamin Moore offer free paint consultations.

 

 

 

 

How Much Value Does a Kitchen Remodel Add to Your Home?

So you’re trying to decide if you should put a new kitchen in your home. The estimates are in, and they’re all far higher than you expected. You may be having doubts and wondering if you should really go ahead with the project. Is a brand-new kitchen really worth the cost?

If you’re smart, you’ll think long-term. The money you spend on your kitchen now could pay you back handily when you put your home on the market. So, how much does a kitchen remodel increase home value? The answer may help you decide if you really want to go through with the project.

How Much Does a Kitchen Remodel Increase Home Value?

A new kitchen can increase home value. In general, the value is expressed as the percentage of money spent on the remodel the homeowner recovers after the sale of the home. Better Homes and Gardens says homeowners can expect a return of about 52% on their investment in a new kitchen if they sell their home. The exact amount you’ll recoup depends on a few factors, such as your house value, the value of houses in your neighborhood and the quality of the project.

How much your home value increases is also dependent on how much you spend on the project. According to Moving.com, a major upscale kitchen remodel returns 53.9% of the money invested. Remodeling your kitchen with mid-range fixtures has a 58.6% return on investment. If you do a minor kitchen upgrade with mid-range fixtures, you’ll see a 77.6% ROI.

It may seem counterintuitive that a minor kitchen renovation, such as replacing cabinets, offers a higher ROI than a major renovation, such as changing the structure and layout of your kitchen. You would think that the more money you invest, the more you’ll get back. But, if you take into account that you are spending far less money on a minor renovation while still getting the desired result, it makes sense that the return is higher.

Looking only at the numbers does not show you the full return value. Think about how long you intend to live in the house after you remodel the kitchen. If you plan on moving quickly after the remodel, the percentage of return is the biggest factor. But if you plan on staying in the home for a number of years after the remodel, you should make upgrades that make sense for your family.

What Percentage of Your House Value Should You Spend on a Kitchen?

Experts suggest that homeowners should spend 6 to 10% of the home’s value on a kitchen renovation. Spending more than that might not give you a good return on your investment. You have to analyze the money you’re spending compared to the potential value you are adding.

For example, if your house is worth $500,000 and you spend $100,000 (20%) of the home’s value on a major kitchen renovation, you’ll get see about a 53.9% ROI — or a $53,900 boost to your home’s value.

In contrast, if you spend $50,000 (10%) of your home’s value on a smaller-scale kitchen upgrade, you can expect an ROI of 77.6% — or a $38,800 home value increase.

In the first example, minus the boost to home value, you’ve spent almost $50,000 on a new kitchen. But in the second, you’re only out about $11,000. Don’t just jump into a major renovation thinking it will give you the best return; often, the opposite is true.

Also, take into account the time you plan to spend in your home after the kitchen is remodeled. If you are moving right away, the 6-to-10% rule makes sense. However, if you plan to stay in your home for years to come, you might want to spend more because the investment also becomes about your personal enjoyment of the space.

Does a Kitchen Add Value to a House?

A new kitchen does add value to a house. It’s one of the most popular rooms in the house, and it’s the room where you and your family spend the most time. It’s no wonder kitchens are one of the first rooms that homeowners look at when they’re considering renovating their homes. It’s so popular that real estate experts have listed kitchen upgrades and full kitchen renovations as second and third in a list of home renovations that add value to your home.

But homeowners should consider more than just money when judging the value of their house. There’s also something called the joy score, which measures the satisfaction a homeowner gets from living in a pleasing and functional space. The National Association of Realtors lists a kitchen renovation as having a joy score of 10 out of 10, no matter if the work was done by a professional or by the homeowner.

With this in mind, you can’t judge your home in terms of money only. So, before you start adding up the monetary value a kitchen adds to your home, be sure to consider the emotional and aesthetic value as well.

The Best Materials for Your Bathroom Remodel: A Comprehensive Guide.

When considering a remodel for your bathroom, the choice of material is paramount. Sure, the layout and design are important, but unless you choose quality material that is durable and water-resistant, you may end up having to redo the bathroom again.

Hot water, steam, and strong cleaning products—not to mention dirt and grime—are par for the course for bathrooms. In choosing the material, you should keep three things in mind: durability, affordability, and of course, aesthetic appeal. Let’s take a look at several aspects of your bathroom remodel and the types of materials that work best in each.

Bathroom Floors

There are several different materials to choose from for bathroom flooring, like cork, wood, porcelain tiles, natural stone, and vinyl. But when it comes to durability and a great ROI, natural stone and porcelain tiles are your best options.

Both stone and tiles are water-resistant and easy to clean. Stone is more expensive and can limit the possibilities in terms of colors and design, but it is easy to install and is long-lasting.

Tiles, on the other hand, offer endless possibilities in terms of design and color and are more affordable than stone. Your contractor can help you decide which material would be best suited to the kind of look you are going for with your bathroom floors.

Bathroom Countertops

For bathroom countertops, the most durable and affordable materials are quartz, granite, or marble. All three fall under a similar price point and offer a wide range of colors and patterns to choose from.

A lot of home remodelers opt for laminate as well, but it doesn’t have the touch of class that marble, quartz, or granite bring to the table (or countertop)!

Bathroom Fixtures

When choosing fixtures for your bathroom, you may be tempted to opt for something budget-friendly—higher-end faucets, showerheads, and knobs can feel like a luxury you can’t afford—but you won’t believe how much that affects the value of your home when it’s time to sell the house. Beautiful, expensive-looking bathroom and kitchen fixtures make a great first impression.

Bathroom Storage

Bathroom storage consists of closets and cabinets. In an attempt to save money, you may be tempted to get particle board cabinets and closet doors. While particleboard is a bad idea anywhere, it’s especially terrible for a bathroom. It’s not water-resistant, and being constantly exposed to water and steam will warp and damage it quickly, leading to doors that won’t shut all the way. Invest in plywood cabinets and closet doors that are resistant to water damage and are also durable.

The Bottom Line

If you are redoing your bathroom, invest in materials that promise longevity, look sleek and stylish, and are also affordable.

If you are looking for professional contractors with decades of experience and a solid track record of exemplary work, Brett King Builder is here to help. We’ve been in the business for 35 years, working with a wide range of residential clients in Pennsylvania. We have the expertise and the experience to handle your bathroom remodeling project, whether big or small.

Lumber Prices Are Finally Dropping After They Soared During The Pandemic

They say money doesn’t grow on trees, but over the last year it did. Lumber prices skyrocketed to historic highs during the

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Will the construction industry be able to keep up with the home remodeling boom?

With all of last year’s turmoil, few people expected the home remodeling industry to grow almost 6% from the previous year.

2019 was a banner year in itself with $383 billion in construction, and 2020 is anticipated to reach $405 billion.

Four factors have spurred the growth:

  1. Accelerated new home prices
  2. Low inventory of for-sale existing homes
  3. Wide spread desire to get out of urban areas
  4. Low interest rates by the Fed

The spring 2020 economic uncertainty led to consumers of all ages and demographics desiring home renovations.

At the same time, one demographic factor is the transition of boomers and older homeowners out of their existing residence into smaller accommodations.

Potentially 11 million homeowners will be moving on or out, while 15 million younger households will be scratching for homes.

Interestingly, younger home buyers, given the choice of a condominium or an existing fixer-upper, are more apt to pursue the latter and plunge into remodeling.

Up to 40% of the kitchen and bath renovations are done by millennials and Gen-Xers. This is not news to most real estate agents today. With the current high cost of obtaining the tarnished American dream of new home ownership, young buyers are kicking the tires, or aluminum siding, for shelter.

According to the Harvard Research’s analysis of the leading indicator of remodeling activity, or LIRA, expect slower growth in 2021 but 2% quarter-over-quarter increases.

The remodeling industry had doubled in 10 years. While new home sales are strong, they are still outside the reach of many younger households

Naturally, every region is different.

The North Bay has had an enormous amount of fire replacement and earthquake repairs that are still happening. Small repairs and basic one item improvements, such as new flooring, takes a different track than larger projects requiring multiple technicians and skills. Whenever multi-tasked renovations occur, the time lines and the construction costs escalate.

At the same time, construction materials prices have exploded, and the supply lines are faltering.

Lumber has exploded 55%–63% in some areas. The timelines for construction have telescoped 20%: A project that should have taken four months is taking five months or longer.

What the market is still anxiously looking for is if COVID-19 will permanently affect our spending habits.

An important milestone in determining if a remodeling is needed is the age of the last renovation. As a general rule, 16-20 years is the life expectancy of a remodel.

As the finishes and sustainability disappears, the desire to catch up with the latest looks, materials and finishes start to wear through. The appetite to renovate one’s home is greater among younger households who are more media savvy and aware of latest trends.

One of the biggest challenges will be finding professional contractors and subcontractors.

Many small contractors have fallen on hard times and are not coming back. The Paycheck Protection Program from the CARES ACT helped 83,036 remodelers and subcontractors with their payroll obligations, but there’s no assurance that they will be back.

It becomes an open question on how many remodelers and professionals will be able to survive into 2021 with the continuing market uncertainties that include longer construction times and disrupted supply chains.

It would appear that the smaller contractors and professionals will be leaving while only long-term well-capitalized businesses with a steady source of skilled labor will survive.

Construction and renovation have been the first industrial sectors to emerge in every economic downturn or recession since World War ll.

Small builders and contractors represent the vast majority of America’s home building and remodeling industries, not big corporations. These are the businesses that will generate the jobs and raise the overall living standards in this country.

Not the government, not the unions and certainly not the retail business importing cheap goods to sell out of big box stores or deliver to your door. The home building and renovation industry is the main engine that will take the US out of this economic quagmire.

So, tell me this: Why are kitchens getting humongous and people cooking less? Why have a huge kitchen island to eat your DoorDash delivery?