Are you planning on remodeling your house? After scrimping and saving for years, you might be excited to run to the store, gather some supplies, and start a few projects. Unfortunately, unless you work as a professional contractor, it isn't always easy to know what to tackle first and which materials to use. Here are two ways to protect your investment so that you don't end up with buyer's remorse later:
1: Target the Right Space
When you think about the money that you are about to spend on your project, you might zero-in on high-tech appliances or paint swatches. However, if you really want to add value to your space, you should carefully consider the ROI of each project, or the Return On Investment. An ROI percentage compares the average cost of each project to how much value it will add to your home. For example, if you find a project that costs $1,000 and has a 120% ROI, your project would have added $1,200 to your home's value.
However, not every project is created equally and targeting the right space is important—especially if you want to protect your investment. Here are some common household projects and how they stack up financially:
- Bathrooms: Are you thinking about replacing those toilets and resurfacing that old footed bathtub? Mid-range bathroom remodels average about 77.1% ROI. To put that number into perspective, if you spend $4,000 to fix up your bathroom, you could make over three-fourths of that money back.
- Kitchen: You might not think that refinishing those dated cabinets and switching out those counters would make that much of a difference, but minor kitchen remodels have a great ROI. In fact, it is estimated that a mid-range kitchen remodel could return as much as 81.8% of your original investment.
- Entryway: If you really want to make your money count, focus on your entryway. In fact, replacing your old door with a stronger steel version could yield as much as a 98% return.
As you mull over your remodeling options, try to identify the most impactful areas in your home. While home appraisers or potential buyers might be able to overlook that dingy carpet, a sparkling kitchen filled with high-end upgrades might tip the scales in your favor.
2: Choose Materials Carefully
Once you start shopping for materials, you might be tempted to stick with lower-end products to save a little cash up front. Unfortunately, if that flooring choice, front door, or siding doesn't wear well, you might end up losing money in the long run. Cheap materials could fall apart, making your place look messy and destroying your investment. Here are a few things to keep in mind while you are at the store:
- Wood: Why would you splurge on alder cabinets when those pine models look pretty similar? Hardwoods like mahogany, oak, maple, and alder have a lower moisture content than softwoods like pine and cedar, which makes them less susceptible to bending and warping.
- Hardware: As you select hardware like drawer pulls and doorknobs, try to pick options that will look great several years down the road. After all, it might sound fun to pick those industrial knobs now, but how will they look when the trend ends? Instead, side with simple, classic touches that will stand the test of time.
- Color: Since rooms can be repainted easily, some people figure that the color they choose won't make a big difference. However, if you ever decide to sell your house, buyers might not be able to imagine themselves inside of that bright green living room. Instead, opt for a neutral color palette and add pops of color with accessories or furniture.
By making smart choices as you remodel your home, you might be able to avoid hassles and protect your bottom line.