If you’re a homeowner in Northern Michigan, you’ve at least thought about selling your home in the last 24 months. With real estate prices at historic highs, just about everyone has thought, “maybe this is the right time to sell!”.
But, after digging into the numbers, many of us find that, while we’d love to see that big check at the closing table, right now just isn’t the right time. So, what can homeowners do to take advantage of this crazy market without actually selling? Renovation projects!
If you own a home, you’ve likely never had a more favorable debt-to-value ratio of your home than you do right now. This means that this is a fantastic time to grab a home equity loan (loan rates are historically low too!) and knock out that project you’ve been thinking about.
Here are five ideas for home renovation projects that will add value to your property in the long run and bolster your bottom line when it is time to sell.
- Upscale Garage Door Replacement
Many of us don’t even think about our garage doors. I mean, seriously, when was the last time you thought about yours? But, an attractive garage door can add significant curb appeal to your home, it requires little to no upkeep, and is something that you can have done over a weekend.
Statistics show that a high-quality garage door replacement cost will be recouped by nearly 99% when it’s time to sell your property. Basically, if you play the long game, you get this garage door for free, so why not take advantage of low rates now and get it?
- Manufactured Stone Veneer on the Exterior of Your Home
OK, we know what you’re thinking, “Manufactured? That doesn’t sound like it would add value.”
Turns out most people don’t know or don’t care whether stone veneer exteriors are actual stone or a manufactured composite, and studies show that the real thing and convincing fake stone add the same amount of value to a property.
One of the major benefits of manufactured veneer is that it is much easier to install (many industrious homeowners will install it themselves), it costs a ¼ of the price, and maintenance and upkeep are a breeze – just wash it like you would vinyl siding.
Remodel.com found that, on average, the return on investment for manufactured stone veneer was 97%, meaning if you spent $3,000 on it for your home, when it’s time to sell, you’ll get an additional $2,910. Not bad!
- A New (or Improved) Deck
We all love summer in Northern Michigan. It doesn’t get much better than sitting out on the deck in the evening, enjoying dinner or drinks with friends, soaking in the season from quality outdoor living space.
Decks, especially in spots where the outdoor lifestyle is popular, add tremendous value to a home. A new wood deck is likely to add close to 64% of it’s cost to your bottom line, whereas a composite material deck almost 85%.
This isn’t a “sky-is-the-limit” scenario though. Decks bigger than 16 x 20 will, in some cases, start to see diminishing returns in terms of the value they add to your bottom line. That doesn’t mean that, if you want a big deck, that you don’t build a big deck; just don’t count on it being cash-flow positive.
- Window Replacements
Old, damaged, or non-functional windows really date a home, they reduce its energy efficiency, and they can significantly impact a homeowners enjoyment and usefulness of their property.
We’re not gonna lie, windows are expensive, especially if you’re going to do the whole house, or if you have windows that aren’t standard sizes, but this is an investment that you should really consider making. Here’s why:
High quality windows will usually give you about 75% back at the sale of your home. Also, most reputable window manufacturers give their products a transferable warranty that itself adds value to a sale. Also, don’t forget that many utility companies offer rebates and discounts to customers who make energy efficient upgrades to their property.
This means that, when you add up the increase to your sale price, the value of a window warranty, and potential rewards on your utility bills, getting new windows could actually make you money. If you’ve got leaky windows or blown seals anywhere, you should consider your options on this one.
- DIY Bathroom Remodel
When it comes to bathrooms and kitchens (the two most popular rooms to remodel and renovate), the sky’s the limit in terms of what you can spend, but the financial returns aren’t very good. On average, the typical bathroom remodel gets a homeowner about 50% of the costs back at the closing table, which, compared to the other projects on our list, isn’t great.
But, you can boost this number significantly by choosing what you remodel strategically, and doing the work yourself.
Home improvement stores have started carrying modular bathroom components that make it so anyone can drive to Lowes, pick out a bathroom vanity, load it in the back of their car, and have it installed in their bathroom by the end of the weekend.
Skip the messy projects like tubs, shower-surrounds, and tiling, and stick with things you can get done yourself in a couple of days: vanities, paint, mirrors, lights, hooks, and hangers. A couple thousand dollars of these items will go a long way to improving a space and will definitely add money to your closing day check when it’s time to sell.
What are your favorite home remodel projects? Tell us about your DIY skills in the comments below. Ready to skip the home remodeling and just sell? Brick & Corbett has you covered. Reach out to our team of experts today and let us show you exactly what we do to get your home sold for the best price, in the shortest amount of time, and on your terms.