Home improvements seem like a great idea. They make your home a more enjoyable place to live, improve curb appeal and can even earn you a tax break at selling time. But before you transform that spare bedroom into a home gym, here are some things to keep in mind:
Not Every Improvement Adds Value.
- Hot Tub: If you want a hot tub and plan to stay in your home for a long time, by all means install one. But a used hot tub tends to get a cool reception from would-be homebuyers.
- Converted Bedrooms: Many homebuyers are looking for a larger space to accommodate a growing family, so converting a bedroom into a craft room or knocking out a wall to create a larger bedroom isn’t always the best move.
- The Statement Wall: The prospect of sanding down and/or painting over a textured, brightly colored statement wall can be daunting to prospective homebuyers. It might be better to go with neutral walls instead.
Home Improvement’s Not-So-Fab-Five
Increase Value by Taking the Long View.
To enhance resale value, make improvements that will extend the life and livability of your home. Upgrading electrical wiring, installing central air, or replacing an entire roof are not only good investments, but the price of materials and hired labor can be added to the basis of your home. In some circumstances, that can mean a tax break if you sell your house. Your tax advisor and the IRS can help you learn more.
Think Outside the House.
Outdoor projects trump indoor ones because they often cost less and usually increase curb appeal. The ROI on a new garage door is likely greater than what you would see on a remodeled master bedroom suite. The same goes for replacing windows and doors. (If you can only afford to upgrade some windows and doors, be sure to replace ones facing the street.) Also, look into government rebates for installing energy efficient windows, doors, appliances, and fixtures.
A fresh coat of paint is a great way to dress up your home. If resale value is a factor, be sure to consider neutral colors.
Show Some TLC to the Heart of Your Home.
Even slight upgrades to your kitchen can add warmth and value to your house. A new coat of paint, resurfaced cabinets and matching appliances have the potential to give new life to an old kitchen while boosting or maintaining your home’s selling price.
Contact The First
Use the equity in your home to pay for improvements large and small. The First’s home equity loans offer very competitive rates for home improvement projects and many other expenses and purchases. Call us today at 215-860-9100 or check our loan terms and rates Here.
Which home improvement yielded the best ROI for you? Tell us by leaving a comment below.