Home > Investing in Your Home and Hearth-Part Two
Investing in Your Home and
Hearth-Part II
Investing in Your Home and
Hearth-Part II
Ideas for
High ROI Projects: Remodel Your Fireplace, Kitchen, and More
Home improvement is an ongoing process. If you are deciding how best to
spend your money and your time improving your home, consider the R.O.I. (return
on investment) for each project. Extensive and expensive projects will increase
the value of your home, but several smaller projects—especially ones that you
can do yourself, such as paiting or remodeling an ugly fireplace—may offer a
better return on your investment.
If you are looking for a home improvement project with a good return on your
investment, try one of these:
1. Basic Maintenance. Maintenance
may not be exciting or glamorous, and you might not be able to show it off to
your friends, but it can be the most important thing you do for your house.
Since nearly all potential buyers hire independent home inspectors, any
structural or maintenance issue will almost certainly be discovered—and a buyer
may expect you to fix it on short notice or deduct the expected cost from the
price of the house. Even worse, the potential buyer may walk away from the deal.
Check for the following issues:
• Leaks – Fix a roof or plumbing
leak early before it causes water damage. This will definitely save you money
(and headaches) in the long run. Check for loose roof tiles and
flashing.
• Gutters and
Downspouts – Clean
out clogged gutters. Re-attach any disconnected spouts. Replace or repair
damaged gutters. Water from clogged gutters can get into walls, make paint
blister or peel, or cause the gutter to sag.
• Cracks – Repair any cracks in your foundation
quickly. Check to make sure gutters and downspouts are not draining into
foundation cracks.
• Fireplace –
Repair chipped or damaged brick. Clean and repaint
the firebox flat black. Clean off
soot and smoke.
• Furnace –
Check furnace operation and replace the filter regularly.
2. Curb Appeal. A lot of real
estate agents talk about “curb appeal.” This is the first impression that a
potential buyer gets as they pull up to your house. Ideally, the outside
appearance of your house should inspire buyers to want to come inside and take a
better look. This first impression also sets up the buyer’s expectations—even if
you have lovingly restored the interior of a house, if the outside needs work
the buyers may still think of the house as a “fixer-upper” and bid
accordingly.
Try the following to improve the outside
appearance of your house:
• Paint – The outside walls of
your house are probably the first place a potential buyer will look. Faded,
chipped, or peeling paint may not be a deal-breaker, but it definitely makes a
bad first impression—and the buyer will deduct the cost of repainting from any
offer.
• Vinyl Siding – The same
goes for old, discolored, or dirty siding. Often pressure washing can work
miracles on dirty siding. Don’t be afraid to replace it if necessary—you will
generally get a good return (85%-90%) and it should help sell the
house.
• Lawn – A well-maintained
lawn improves the appearance and adds value to a house. You don’t want to go
nuts—grandiose landscaping projects won’t pay for themselves. But if you have a
green thumb, plant flowers along a walkway or beside a mailbox for a friendly,
welcoming feeling.
3. Interior. The interior of your
home is just as important as how it looks from the outside. When touring a home,
buyers visualize themselves living in the space with their own furniture and
possessions, but they want all the basic elements (lights, doors, fireplaces)
already in place. You want to provide a clean, finished interior that looks like
it is ready for someone to move into.
Here are some ideas for improvements to the
interior of your home:
• Kitchen – People notice kitchen
remodels, but all-new appliances and cabinets are expensive. Smaller
projects such as a new sink or cooking station cost less and offer a better
return. Upgrade the look of your kitchen with under-cabinet lighting, new
countertops, or a ceramic tile backsplash.
• Walls – Painting is almost always a great return
on your investment. Painting the walls instantly improves the look and feel of a
room. Although strong, dark colors are becoming popular especially in Victorian
houses, a light color is a safer bet for most houses. Paint the walls yourself
to keep some money in your pocket for a better return.
• Fireplace – A fireplace can be a big draw for a
potential buyer. If you have an ugly fireplace, you can paint
the fireplace bricks as a quick do-it-yourself project. You can repaint
fireplace brick and achieve an upscale, “real brick” look with a do-it-yourself
kit that contains everything you need to remodel an ugly fireplace in a single
weekend. This project costs about $200—a small investment that should give you a
nice return.
Whichever projects you consider for your home, keep the bottom line in mind.
And remember that small improvements that add monetary value to your home can
make your home more enjoyable to your family as well.
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