Contributed by: Holly Henbest
This is a great time of year to start tackling some home improvement projects. Perhaps you are considering updating your home’s décor, investing in repairs, upgrading your appliances, or embarking on a remodel. However, if your budget is limited, and you want to get the most bang for your buck, consider projects that will generate the biggest returns.
If your home is in desperate need of repair, or needs some TLC (tender loving care), address those issues first. Postponing or eschewing home repairs altogether may actually be more costly in the long-run, especially if you plan to sell your home. Well-maintained homes attract Buyers and typically generate higher purchase prices. Conversely, obvious signs of deferred maintenance or disrepair may deter Buyers. Deferred maintenance may also negatively impact your home’s appraised value, which is important when selling or refinancing your home, or obtaining a home equity line of credit. If you are selling, you are unlikely to get top dollar if your home is in bad shape. Furthermore, once your house is under contract, Buyers may try to renegotiate an even lower purchase price or request a list of repairs after home inspections are completed. As a result, you may end up getting stuck footing the bill for repairs and selling your home at a lower price (essentially paying double for the repairs). These are the areas of your home you should be particularly concerned about:
Roof–If your roof has missing, damaged, rotting, or exposed areas, get ahead of the problem and get it repaired. Is your roof more than 15-20 years old? Perhaps now would be a good time to start a replacement program. Some roofers will replace the roof one section at a time, in order to fit your budget.
Exterior Paint–Home exterior paint typically lasts 7-10 years in Arizona. Fresh paint looks better, but more importantly it is integral to protecting wood, fascia, and stucco.
Pool–Does your pool surface need repair or re-surfacing? Does the pool pump work correctly/efficiently? Is your cool deck peeling or chipping? Get on top of these issues before the summer season.
Pipes and Leaks–Leaks only get worse and can cause big problems, so if anything leaks…get it fixed. When evaluating your home, consider the plumbing and fixtures as well as the exterior landscaping systems.
If your home is in otherwise good shape, and you want to make some economical improvements, consider energy efficient upgrades. Investing in energy efficiency can have big payoffs. Not only will you immediately start saving money on utilities, energy efficient upgrades will make your home more appealing to potential Buyers, and will potentially elicit a higher sales price when the time comes.
Here are a few ways to invest in energy efficiency:
Lights–Switch to LED lights.
Insulation–Add insulation in the attic (this is an issue in almost every home inspection).
Appliances–Upgrade or replace your kitchen appliances and/or washer and dryer.
Air Conditioner–Upgrade or replace your A/C system (before summer when companies charge top dollar).
Thermostat–Install “smart” programmable thermostats.
Windows–Invest in dual pane/energy efficient windows (start with west- or south-facing windows if you can’t do the whole house).
Perhaps your home is in excellent condition and you have some extra money to spend on décor.
Here are some fun (and smart) ways to spruce up your home for less than $3,000:
Hardware & Fixtures–Invest in matching metal hardware (plumbing fixtures, cabinet knobs, door handles, etc.). Choosing a color and style that suits the aesthetic of your home will look great and instantly add value.
Lighting–New light fixtures can instantly update the look of your home. Adding lights can also make smaller spaces appear larger, enhance home security, and make outdoor spaces more appealing for entertaining. Recessed/canned lighting particularly brightens a room and typically appeals to potential Buyers.
Are you ready to tackle a bigger project? Here are some bigger-ticket purchases that may significantly add value to your home:
Stainless Steel Appliances – Select one brand for all kitchen appliances (or make sure they all match), and look for energy efficient options.
Countertops–Buyers tend to favor granite, quartz, or marble.
Flooring–Buyers tend to favor wood or tile. Carpet is typically the least desired flooring, so consider limiting carpet to the bedrooms. While natural stone is appealing, it requires more maintenance. Tile that resembles wood has gained popularity and is another good option.
Investing in repairs and home improvement projects can be stressful, especially when you are on a budget. However, by focusing on projects that will yield the biggest pay-offs, you will likely save money and potentially make money over the long-term.
