Eric and Monta Baskerville knew the house they bought in 2009 was a good find, but the 51-year-old home needed some upgrades. “It was in good condition, but all the bathrooms needed updating,†says Monta, 35, a National Park Service historic architect. The Baskervilles did large and small projects to update their four-bedroom, split-level house in Springfield, Virginia, including removing wood paneling in the den, adding crown molding in the living room, and completely gutting a bathroom–adding new plumbing, a vanity, low-flow toilet, light fixtures, and a marble floor. Eric also changed the home’s electrical system from fuses to breakers.
Real estate experts point to inexpensive upgrades and fixes, such as painting in neutral colors, de-cluttering inside and outside the home, landscaping, changing furnace filters, and installing window treatments to let in as much natural light as possible as ways homeowners can boost the value of their homes. How much the boost will be varies by the scope of each project and the location of the home, so it’s best to consult a local real estate professional about what will add the most value to your home, suggests Kit Hale, a regional vice president of the Chicago-based National Association of Realtors.
A licensed contractor and a plumbing apprentice, Eric, 42, estimates that the renovations increased the $420,000 home’s value by $50,000. Except for assistance with painting from his wife, he did all the work himself, so his only costs were for materials. He spent $4,000 for the bathroom supplies, $450 to change the sewer line, $150 for attic insulation, and $2,800 for an
energy-efficient wood pellet stove, for which the Baskervilles received a $1,500 energy tax credit. Energy-efficient appliances add value. Even if the house is not being sold, they can save homeowners money in the long run.(Continued on next page)
In today’s shaky housing market, homeowners are becoming more circumspect, weighing the pros and cons of how the renovations they make will affect the bottom line, specifically if they’re trying to sell. This especially holds true with falling home prices. The average price of an existing home dropped about 13% between 2008 and 2010 to $172,900, NAR reports. The top-selling areas of a home are usually the kitchen and bathroom, which can be costly to upgrade. The national average cost of a minor kitchen remodel is $21,695, adding $15,790 to the value of a home at sale, while a bathroom remodel is $16,634, adding $10,668 to the value of a home, according to Remodeling magazine’s Cost vs. Value Report 2010-11.
Homeowners on a tighter budget who are looking to sell can appeal to space-hungry buyers, says attorney and real estate broker Tara-Nicholle Nelson, by installing built-in organizational systems such as bookshelves, closet organizers, and wine racks.
There are a slew of other inexpensive and mid-priced renovations or upgrades that can add value to a home, according to real estate experts. Here are a few:
1. Replacing a home-entry door with a steel door gives the highest return on investment of all mid-range and upscale home improvement projects, accordingto Remodeling magazine’s Cost vs. Value Report 2010-11. Nationally, the average price of a steel door is $1,218, but the cost is recouped at 102% at the resale of the house, the report says. For regional costs, visit www.remodeling.hw.net/2010/costvsvalue/national.aspx.
2. Replacing a garage door gives the second-highest return on investment, 84% of the $1,291 average price nationally, according to the report.
3. Painting is a great way to spruce up large portions of a house. The price of paint for a home’s interior varies from $12 to more than $50 a gallon depending on the quality of the paint, according to Costhelper.com, a website that shows what people are paying nationwide for products and services.
4. You can scale back costs to a few hundred dollars by refurbishing items, such as replacing faucet and cabinet door fixtures, re-facing cabinets, and upgrading light fixtures to energy-efficient designs, according to Bankrate.com.