If You Could Renovate One Room Only... Which would it be? Which would have the best return on investment?

According to Cathy Morrissey, of The Reno Chick, the answer is a no-brainer.

“If I had to say what gets people in the door, it is the front yard, your outdoor room,” says Morrissey, who has managed seven renovations since 2012. Each has returned a six-figure sum.

“That’s because if you can’t get them (prospective buyers) in the first 10 seconds, if you can’t make a good impression, you will never have a chance.”

If I had to say what gets people in the door, it’s the front yard.

Morrissey says her own daughter is currently looking to buy a home and already has decided not to stop and inspect 20 houses because she hasn’t liked the front yard.

“Investors don’t care so much because they are thinking about what they can do to improve it themselves but for owner occupants it’s their home so spend a little if that is all you have and it will bring the best return on your outlay.

“Make that positive first impression and you don’t need to spend a lot of money to do it.”

If you have less than $500, Morrissey suggests you:

• Buy some new plants and flowers
• Mow the lawn
• Clean the concrete
• Remove rubbish
• Prune existing foliage
• Add some fresh mulch
• Paint the front fence

She recently spent $6,000 cosmetically refreshing the front of an investment property in Sydney. She says the 35-day paint-and-gardens project made her $105,000 profit.

“Paint the fence if you can and get the front yard looking really neat because that will get people in your front door.”

 

Kitchen a sure winner

The kitchen of almost any property will return the best bang-for-your-renovation bucks when it comes time to sell, he says.

“I would say it is probably one of the most expensive (rooms) to do but for returns I would have to say the kitchen,” Hall says.

“If a buyer comes in, it really looks like a lot of money has been spent and a lot of hard work when they are confronted with a new kitchen but it actually doesn’t have to be expensive.”

Hall’s tips for saving money on your kitchen include:

• Shopping for a package of appliances including range-hood, oven and cook-top
• Buy flat packed kitchens and install yourself if you can
• Buy a mainstream brand of appliances suitable to your target market
• Don’t over-capitalise

“If you do have a bit of cash to spend, while it is the bigger ticket investment it will bring the biggest return on spend because it is your home’s highest traffic area and everyone really wants that open-plan flow to an impressive-looking kitchen.

“You will pay $15K-$20K for a top end kitchen, $10K-$15K for a very good kitchen but you could expect a return of three times minimum on that spend.

“In this current market you can sometimes get up to five times your investment on your kitchen reflected in your post-renovation valuation price.”

Cherie Barber of Renovating for Profit also thinks a kitchen is the most important room as “buyers love a smartly renovated, modern kitchen and, done well, you’ll always get a good return on investment.”

“Between $7,500 to $12,500 is a reasonable ballpark to budget for an average kitchen reno; obviously a lot more for a luxury fit out,” Barber says.

“I always say your kitchen reno budget should be no more than 2% of your property’s current value.

“The other really important room, for the same reasons, is the bathroom …”

Don’t forget the wet areas

Experts, including Justin Lilburne from JPP Buyers Advocates who renovates in his spare time, say updating a bathroom can potentially add sizeable value provided its bath, shower and toilet remain in their original locations.

If you don’t have to move these fixtures’ pipes you could save a lot of money and get maximum return on your renovation.

“A quick update could be done for $5,000-$10,000 and the return on investment would be$30,000-$40,000,” Lilburne says.

“However, adding an additional bathroom will increase the number of potential buyers and this will increase the gain; keeping mind it will depend on the type of dwelling and location of the existing plumbing along with ease of access.”

Source: Real Estate Australia (Caroline James)

The 8 Most Financially Savvy Home Improvements→

Enjoy your home more today — and sell it for the best price tomorrow.

When it comes to home improvement, some dollars stretch more than others. And if you’re on a limited budget, it becomes even more important to spend those dollars wisely. 

Here are eight affordable (under $5,000) home improvement projects that’ll help you enjoy your home more today and provide excellent financial return in the future.

1. Add the Finishing Touch of Molding

Decorative molding is a classic touch that’s been around since the ancient Greeks and Romans first installed it to add grandeur to their buildings.  Centuries later, molding is still one of the most dramatic ways to dress up a room. It’s a budget-friendly improvement that trims a room for a finished and expensive look.

Today’s wood moldings come in hundreds of options — from simple to ornate — that you can stain, paint, or leave natural. You can also find moldings in flexible materials, such as foam, that make installation a whole lot easier. Some moldings even include lighting that casts a soft, ambient glow.  

Buyers consistently rank both crown molding and chair railing in their list of most desirable decorative features they seek in a home (#3 and #7 respectively), according to the annual National Association of Home Builders (NAHB) survey, “What Home Buyers Really Want.”

And at $1.50 per foot if you DIY it, or $8 per foot if you hire, it’s a no-brainer in terms of personalizing your home while adding value. (Although we don’t recommend DIY unless you’ve got above-par mitering skills.)

A few tips about molding:

Use crown molding to make a room seem bigger and taller. But be careful about proportions. If your ceiling height is 9 feet or less, go with simpler styles to avoid overwhelming the room.

Place a chair railing at one-third the distance of the ceiling height. Chair railing placed incorrectly can make a room seem out of proportion.

Don’t forget entryways, doors, and windows: Bump up the trim around these areas to give rooms a completed and expensive feel.

2. Install Quality Ceiling Fans

If crown molding and chair railing were #3 and #7 on buyers’ decorative wish lists, what was #1? 

Ceiling fans. 

Over the years, ceiling fans have become quite the crowd pleaser. Once they were just a cheap solution to rising energy costs — ugly, wobbly, noisy eyesores endured because they were cheaper than air conditioning.

Today, ceiling fans have evolved into an essential component of American homes as energy prices continue to rise. And since designs have caught up with the times, they come in a variety of styles and colors to complement any room.  If your ceiling fans are old and outdated, new ones (coupled with a fresh paint job and crown molding) could give your rooms a refreshing update while saving money.

Some tips about ceiling fans:

• Ceiling fans should hang 7 to 8 feet above the floor. If you’ve got a low ceiling, buy a hugger ceiling fan that’s flush-mounted.
• Size matters more than the number of fan blades. Go for the biggest Energy Star-rated fan that will fit the space.
• Choose quality. You’ll get better cooling results, less noise, and good looks at a digestible price point of $200 to $600.

3. Plant Some Trees

Say what? Adding trees doesn’t instantly pop into your head when you think of adding value to your home. But trees are moneymakers that get better with age.

A mature tree could be worth between $1,000 to $10,000, says the Council of Tree and Landscape Appraisers. A 16-inch silver maple could be worth $2,562, according to a formula worked out by the Purdue University Cooperative Extension Service.

In urban areas, money really does grow on trees. A recent study of home sales by the Pacific Northwest Research Station of Portland showed that street trees growing in front of or near a house boosted its sale price by an average of $8,870 and shaved two days off its time on the market. 

There’s more. Trees also:

• Save $100 to $250 annually in energy costs
• Lower stress
• Prevent erosion from downpours and roof runoff
• Protect your home from wind, rain, and sun

But don’t just run out and plant trees willy-nilly. Here are some tips:

Follow the sun. Plant shade trees on the south side of the house where the sun beats strongest and longest.

Follow the wind. Plant windbreak trees, which can lower winter energy costs by 30%, on the north and northwest sides of your property.

Don’t plant too close. If you do, branches can scrape roofs and siding, causing expensive damage.

Rule of thumb: Don’t plant trees any closer than the tree’s mature height plus one-fourth of that height. So, for example, if a tree reaches 40 feet, it should be planted at least 50 feet from any other trees.

4. Install a Patio   

Patios are a great cost-effective way to increase your home’s living space without actually adding on. Plus you’ll recover 30% to 60% of your investment. A $2,000 patio would return around $900 at resale. 

But don’t go crazy and trick out your patio with high-end amenities, like an outdoor kitchen — especially if you’d be the only one on the block with one. When it’s time to sell, you won’t get back much — if any — of your investment on kitchens and other high-end amenities. Instead, keep it simple and functional. (And, really, how often would you use an outdoor kitchen?)

Some wise advice when planning a patio:

• Check property for slope, sun, and shade patterns.
• Remember ‘dig alerts’ that utilities provide free of charge.
• Don’t skimp on patio lighting. It can make all the difference in functionality and beautification.

5. Pump Up Your Home Security

The peace of mind that comes with installing a home security system is priceless.

In reality, price varies. You can buy and install it yourself for $50 to $300, or a security company can sell and install a system from $0 to $1,500. The “zero” is the hook companies use to lure you into signing a multi-year monitoring contract that ranges from $95 to $480 per year. 

If a monitored system suits your needs, you’ll also get a break on your home insurance. Most companies will discount your annual rate 15% to 20% if you have a security service.

Home security systems also make your home more marketable: 50% of homebuyers (in the NAHB survey) say a home security system — particularly security cameras — tops their list of most-wanted technology features.

You can go over the top and install high-tech security gadgets, like smartphone-operated locks and a laser trip wire. Or you can keep it simple with a keypad that communicates with sensors and motion detectors throughout your house. 

Tips:

• If you do decide to go with a monitoring system, choose a company with a 10-year track record to ensure reliability.
• Don’t rely on any system as your sole means of security. Locking doors and windows is still your best first-line of defense.

6. Do Almost Any Energy-Efficient Upgrade

The value of energy-efficient houses just keeps going up and up. A UCLA study examined the sales prices of 1.6 million California homes from 2007 to 2012 and found that homes with Energy Star, LEED, or GreenPoint certification had, on average, a 9% higher price. 

That finding is echoed in NAHB’s report that surveyed homebuyers across the nation: Nine out of 10 potential buyers would select an efficient home with lower utility bills over a less efficient home priced 2% to 3% less.

One energy-saving home improvement project that not only saves energy but gives you tons of enjoyment, too, is converting a wood-burning fireplace into a gas one. If you like to crunch energy numbers, gas fireplaces have energy-efficient ratings as high as 77%, compared with wood-burning fireplaces that convert only 15% of wood’s energy into useful heat. 

In fact, 39% of homebuyers say a gas fireplace is an essential or desirable feature of the next home they purchase. So when it comes time to sell your home, more than one-third of potential buyers will be looking for a gas fireplace.

In the meantime, it’ll be paying for itself in reduced heating costs.

Some tips for converting to gas:

• A direct-vent gas insert most closely replicates the wood-burning experience at a cost of about $3,000 to $4,000, installed.
• If you don’t have an existing fireplace, you can install a direct-vent (vents directly outside so you don’t need a chimney) gas fireplace for about $5,000 (installed and finished).

7. Add Some Creative Storage

We don’t have to sell you on the value of storage and built-in organization. Since when have you heard someone complain about too much storage? Never, we bet. 

Adding storage is a no-brainer, but it does take a little brainpower to find your home’s hidden storage. 

Here are a few ways to think outside of the toy box:

• Open drywall to create storage cubbies between your wall’s studs.
• Install platform storage that hangs from your garage ceiling.
• Even stairs can give you more storage. One clever mom repurposed an old chest of drawers and created storage within a basement staircase.

8. Light Up the Outdoors

Exterior lighting makes your home shine in the evening, accents features you like most about your house, and helps keep burglars away. A hard-wired lighting fixture can cost $150 to $250 to install. On the plus side, you could get a 50% return on your investment, says Judith Patriski, a Cleveland appraiser and REALTOR®. Installing motion-detecting lights can even lower some homeowners’ insurance premiums. (Check with your agent.)

And with technological advances in solar lighting, it’s easier and more cost-effective than ever to boost your home’s nighttime curb appeal.

Plus, 90% of buyers say outdoor lighting is on their list of desired home features. 

Tips:

• Place accent lights under your favorite trees to show off your landscaping’s top earners.
• If your lights are hard-wired, put them on a timer so you don’t waste energy running them during the day.
• Choose a warm white light. It’ll make your home look and feel welcoming.

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SOURCE:
HOUSE LOGIC, LISA KAPLAN GORDON

What Not to Do as a New Homeowner→

Avoid these easy-to-prevent mistakes that could cost you big time

We know so well the thrill of owning your own house — but don’t let the excitement cause you to overlook the basics. We’ve gathered up a half dozen classic boo-boos new homeowners often commit — and give you some insight on why each is critically important to avoid.

1. Not Knowing Where the Main Water Shutoff Valve Is

Water from a burst or broken plumbing pipe can spew dozens of gallons into your home’s interior in a matter of minutes, soaking everything in sight — including drywall, flooring, and valuables. In fact, water damage is one of the most common of all household insurance claims.

Quick-twitch reaction is needed to stave off a major bummer. Before disaster hits, find your water shutoff valve, which will be located where a water main enters your house. Make sure everyone knows where it’s located and how to close the valve. A little penetrating oil on the valve stem makes sure it’ll work when you need it to.

2. Not Calling 811 Before Digging a Hole

Ah, spring! You’re so ready to dig into your new yard and plant bushes and build that fence. But don’t — not until you’ve dialed 811, the national dig-safely hotline. The hotline will contact all your local utilities who will then come to your property — often within a day — to mark the location of underground pipes, cables, and wires.

This free service keeps you safe and helps avoid costly repairs. In many states, calling 811 is the law, so you’ll also avoid fines.

3. Not Checking the Slope of Foundation Soil

The ground around your foundation should slope away from your house at least 6 inches over 10 feet. Why? To make sure that water from rain and melting snow doesn’t soak the soil around your foundation walls, building up pressure that can cause leaks and crack your foundation, leading to mega-expensive repairs.

This kind of water damage doesn’t happen overnight — it’s accumulative — so the sooner you get after it, the better (and smarter) you’ll be. While you’re at it, make sure downspouts extend at least 5 feet away from your house.

4. Not Knowing the Depth of Attic Insulation

This goes hand-in-hand with not knowing where your attic access is located, so let’s start there. Find the ceiling hatch, typically a square area framed with molding in a hallway or closet ceiling. Push the hatch cover straight up. Get a ladder and check out the depth of the insulation. If you can see the tops of joists, you definitely don’t have enough.

The recommended insulation for most attics is about R-38 or 10 to 14 inches deep, depending on the type of insulation you choose. BTW, is your hatch insulated, too? Use 4-inch-thick foam board glued to the top.

5. Carelessly Drilling into Walls

Hanging shelves, closet systems, and artwork means drilling into your walls — but do you know what’s back there? Hidden inside your walls are plumbing pipes, ductwork, wires, and cables.

You can check for some stuff with a stud sensor — a $25 battery-operated tool that detects changes in density to sniff out studs, cables, and ducts.

But stud sensors aren’t foolproof. Protect yourself by drilling only 1¼ inches deep max — enough to clear drywall and plaster but not deep enough to reach most wires and pipes.

Household wiring runs horizontally from outlet to outlet about 8 inches to 2 feet from the floor, so that’s a no-drill zone. Stay clear of vertical locations above and below wall switches — wiring runs along studs to reach switches.

6. Cutting Down a Tree

The risk isn’t worth it. Even small trees can fall awkwardly, damaging your house, property, or your neighbor’s property. In some locales, you have to obtain a permit first. Cutting down a tree is an art that’s best left to a professional tree service.

Plus, trees help preserve property values and provide shade that cuts energy bills. So think twice before going all Paul Bunyan.

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Article Credits: House Logic, John Riha