May 4, 2017
Are you considering a home improvement project this spring or summer? There are many projects to choose from, kitchen, bedroom, bathroom, siding, windows and roof. But which of these projects should you consider? That all depends on your short term goals and your long term goals.
Kitchen projects are a major undertaking, especially if you change the layout of your existing kitchen. There are also many variations of cabinetry and countertops to choose from. What you really need to think about is if you plan to stay in your home a long time or if you plan to sell your home within 5 years of completing the project.
If you plan on selling in the short term to take advantage of the plush housing market, you need to make sure that your kitchen layout and design is up to date and user friendly. Selecting a local kitchen contractor to help you design and select the right finishes for top dollar return will certainly help you out when it comes time to sell your home. I have found that Keith Coacher of Coacher Construction does an amazing job at designing and then completing your kitchen project on time and within your budget.
You can expect to regain 100% or even more on your kitchen project expenses.
Bathroom projects can range from very simple or to a major change. Simply changing out flooring and fixtures can be a very inexpensive way to spruce up that outdated bathroom décor. Even dropping $3,000 in your bathroom can reap huge benefits. Most of those small changes can be done by even the novice do it yourselfer. But if you feel like it’s too much for you to handle, then I recommend The Bathroom Company. Its name tells you that is all they do; they are experts at it.
You can expect to regain 90-100% on your bathroom project expenses when you sell your home.
If comfort and curb appeal is what you are looking for, then it may be time to renovate your siding, windows and roof. These projects can be done independent from each other, but I highly recommend if you are replacing your siding then you should definitely replace your windows, especially if your windows are over 15 years old.
Windows have come a long way in energy savings and even most local electric and gas companies may provide you with great financing options and/or credits to your energy bill. On top of that, the IRS still allows tax credits (as of this date). You could easily save 50% on your energy costs just by replacing your windows. And when you replace windows with your siding, it’s so much cheaper and they look a lot nicer just because of how they are finished and sealed in.
Siding options are also a great way to spruce up your exterior. Many homeowners are going away from vinyl siding, but it is still a great option for those looking for curb appeal but are in a tight budget. If you stay with vinyl siding, make sure you get the high quality, thicker siding. It’s still cheaper than the more common siding choices today, but the upgrade in vinyl will look so much better than the cheapest siding on the market. Make sure you do your homework and research before selecting your vinyl siding. With vinyl siding, you could expect to recoup 78% of your expenses when you resell.
Wood siding, most commonly known as LP, is arguably the most common siding option in today’s market. Most, if not all, new construction uses wood lap siding. It’s easy to install, holds paint well and comes with a good warranty. Wood lap siding also looks very nice. Wood lap siding does come with some draw backs. It is low maintenance, meaning you should maintain it at least every other year. Sometimes just cleaning it with a power washer is more than enough. Make sure that if you notice any paint bubbling up or starting to peel off that you touch it up as soon as possible for the longest lasting product. If you choose to go with wood lap siding from vinyl siding, you should consult with your insurance company as it may affect your premiums. With wood lap siding, you could expect to regain 80% of your expenses.
The most exquisite siding option you could choose is fiber cement siding, most common brand is James Hardie. James Hardie siding has the highest return on investment when it comes to replacing siding according to HGTV at 92%. This option has several different varieties to choose from, dozens of pre-finished colors (or you can custom color) and has the best warranty in the siding industry. It will not rot, it holds up to our South Dakota weather a lot better than any other siding product (other than brick) and looks amazing.
If you replace windows and siding, and upgrade your kitchen and bathroom, none of that will mean much if your roof is leaking or looks like in poor condition. Upgrading your roof is not fun and most people don’t even notice it. But when it comes to selling your home, your roof is very important. There are many roofing options you can choose from that would complement your new renovations, so you should select which option will look the best for you. When upgrading your roof, you’ll only recoup about 60% of your expenses on the sale of the home, but if you stay in your home for at least 5 years, you could recoup the costs from savings in your insurance. Dan Pickering with Allstate Insurance says that he has seen homeowners save40-50% on premiums after a new roof was installed! Just to show you the numbers, we took a $200,000 home with a 17-year old roof and insured it for around $800 a year. After replacing the roof with asphalt shingles, we dropped the rate to around $400 a year! That’s a huge savings just for replacing your roof. Of course, this is just an example, you should consult with your agent or call Dan Pickering for your free quote. Regardless of who your current insurance company is, you should always let them know if you did any renovations to your home. There may be a lot of savings.
Are Home Improvements Worth the Debt?
Here’s an excerpt from Evenfinancial.com:
Borrowing money to pay off credit card bills is money that you will never see again. However, according to Remodeling Magazine, smart home improvements return a large percent of their costs. A recent study done by the magazine found that minor kitchen remodeling (about $15,000 worth) is the most responsible choice in home improvement projects, returning 92.9 percent of cost to the homeowner. Siding replacement came in a close second in the study, returning 92.8 percent of cost.
And yes, fixing that hypothetical leaky roof is also a worthwhile project, returning 80 percent of cost at resale. “If the roof is leaking, buyers won’t go beyond that,” realtor Ron Phipps told HGTV. “I don’t care how awesome the kitchen is.”
We now offer several different funding options for your next home renovation project. We specialize in roofing, siding, windows and decks (basically everything outside your home). With funding from our partners, we make it easier for you! Check to see our lending partners by CLICKING HERE.
Call us today for your FREE quote on your project. Our Advisors will help you make the best decisions based on your needs and wants.