They say that the three “Rs”—repair, rehab, and remodel—will help preserve the value of the home, a family’s most important asset. The National Association of Home Builders (NAHB) Remodelers point out the financial incentives of remodeling while offering suggestions for consumers on projects that provide the best return on investment.
According to the NAHB, remodeling not only enriches a homeowner’s quality of life, but it can also provide significant financial rewards by increasing home value and saving homeowners money by improving home performance.
Now that interest rates hover at historic lows, homeowners may want to consider moving forward with long-delayed projects that help maintain their home’s value by modernizing and adding amenities. Immediate savings can be especially reaped on energy and utility bills after upgrading home efficiency.
Adding a full bath or renovating the kitchen are great investments, but smaller projects such as replacing siding or adding a deck improve the space and beautify a home as well, according to the experts at NAHB Remodelers. In fact, the best return on investment doesn’t necessarily always mean spending big:
Fixing drafts for better airflow, or repair the roof to stop leaks: Even simple repairs can drastically improve home performance and protect the structure’s integrity. An insulation and window efficiency audit can even be performed, giving you valuable information poised to help save money on energy bills.
Replacing siding: Nothing screams age like blistering, fading or cracking siding, even if it’s only the fascia of your home. Aside from adding beauty, newer siding has more insulating features than its older cousins.
Adding a small bathroom: Remodeling experts agree that the addition of a half or ¾ bath can add value beyond the original investment in your home.
Expanding to the outdoors by adding a deck, patio or porch: Let’s face it. Some areas are made for outdoor living. The investment you make in your backyard can mean not only a more enjoyable lifestyle, but can add significant value to your home should you decide to someday sell.
Repainting the interior or exterior of the home: This is the minimum you can do that can translate into the largest return on investment. Realtors® agree that paint does wonders.
Refurbishing or adding exterior landscaping: Curb appeal can be enhanced with a little sweat equity, some imagination and a few gardening books or online photos to give you suggestions.
Master Suite addition or remodel: The “graying of America” demands comfortable, roomy, updated master bedrooms, whether you are the ones graying or not. You can walk through a home with a completely remodeled kitchen, gorgeous carpeting and the latest in interior paint colors, but if the master suite is an afterthought, something is wrong with this picture.
The real estate market is bound to take an upswing in the near future and savvy investors can take full advantage. But do your homework. Know your location, your market and your budget. And most importantly, if you’re not likely to be a DIY’er, find a good contractor.
For more information about remodeling, visit www.nahb.org/remodel.
Dena Kouremetis is a veteran freelance real estate consumer journalist and California real estate broker. She may be reached by email at REritr@aol.com.
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