If you could make over one room in your house, which room would it be? Better yet, which room should it be? I’m guessing you’re going to say either the kitchen or the bathroom. Ding, ding, ding—you’re right!
Buyers are looking for those newer finishes throughout the house and are calculating how hard a project is going to be to do-it-themselves, so kitchens and bath redo’s show well.
It’s no secret the best room for a makeover, in terms of your return on investment, is the kitchen. Even though a kitchen remodel likely is the most challenging and time consuming, it’s still a very worthy project for three reasons: you can enjoy it yourself, you could build equity in your home, and be able to get it ready for an eventual sale. If you take it on you’ve accomplished three goals in one!
In fact, Remodeling Magazine says a minor kitchen remodel returns approximately 80 percent of its value at resale, while a major midrange kitchen remodel will return about 65 percent of its value at resale. So, if you’re looking at redoing the kitchen, and you know you’re going to sell at some point in the near future, keep it to a minor remodel. A big kitchen remodel that involves tearing walls back to the studs, reconfiguring the layout, and investing in all new cabinets and appliances, just isn’t going to give you the biggest return because your expense outlay is so great.
Bonus tip: If you’re thinking about adding a pool to increase the value of your current home the answer is, don’t do it! Although it could be fun in the meantime!
Investing in your own home while you’re living there is a great way to build equity without emptying your bank account. Kitchen and bath remodels that include upgrades like a new vanity, lighting, and toilet, can give you a good return. Sometimes it helps to tap into some additional funds to make a remodel possible. If you want to see if you qualify for a program with us that would help finance a remodel, we would love to help! We offer several cash-out refinance programs here at FCM. This means, qualifying borrowers can refinance their mortgage by using some of their home’s equity to fund a remodel. We also have renovation programs that allow you to borrow 100% of the total funds needed for your remodel project if it’s over $5,000 and meets program guidelines. This will be financed into the loan, so that means you will just be able to pay it off as you pay off your mortgage!
All content provided on this blog is for informational and educational purposes only. There are no representations as to the completeness regarding the topic of this blog post and as such no liability can be created for any losses, injuries or damages caused by any errors or omissions. Please consult a Loan Originator for more detailed information. © 2018 First Community Mortgage, Inc. All Rights Reserved.