With less travel happening again this summer, homeowners may be looking to improve their staycation surroundings. Many are contemplating home improvement projects that provide a bigger return on their investment, especially when tapping into a home’s equity with a Home Equity Loan or Home Equity Line of Credit (HELOC). Here are 6 home improvement projects to consider that may increase the value of your home.
1.Minor Bathroom Remodel
A minor bathroom remodel can provide you with a 102 percent return at resale, according to HGTV. What’s considered “minor”? In general, it involves replacing the tub, tile, floor, toilet, sink, vanity, lighting and fixtures. That can cost around $10,000, but the return on investment is impressive.
2.Limited Kitchen Remodel
Another great home improvement option is a limited kitchen remodel, involving about $15,000 for cosmetic updates like replacing existing appliances with newer models or refinishing old cabinets.This can bring you about a 98% return on your investment at resale.Experts say major renovations that cost more will not give you a better return. You can also bring new life to a kitchen with a fresh coat of paint and new lighting.
3. Exterior Home Improvements
This can get you another good return on your money, invested at a 95% return, according to HGTV. Exterior improvements can include vinyl siding, new paint or a new front door entry. It can also include a garage door replacement or manufactured stone veneer. Remember, if you do eventually decide to sell your home, most buyers will do a drive-by inspection first. If they aren’t impressed by the outside, they may not even bother to look inside.
4. New Bedroom
Converting an attic or another unused space into a bedroom can provide you with a 93 percent average return at resale. Turning a two-bedroom home into a three-bedroom home is a big bonus with significant resale value. It’s definitely something to consider.
Landscaping can make a home look fresh and aesthetically appealing,and can provide an estimated 100 percent return on your investment if you sell your home. If you already have a healthy lawn, consider new plantings and mulch to boost your curb appeal. Adding a walkway and some landscaping lights can also dramatically improve the allure of your home. Best of all, well-maintained landscaping never goes out of style.
6. Roof Repair or Replacement
A new roof can be extremely expensive, but when it comes to selling a home it can definitely impact the number of offers you receive as well as the selling price. Many buyers will reconsider their offer during the inspection process if they discover they’ll need to replace the roof. If your roof is in need of repair or replacement, it’s something you should seriously consider.
Financing Your Home Improvement Projects
Many home buyers take advantage of the equity in their homes to complete home improvements. Benchmark Federal Credit Union currently offers members several loan options, including a Fixed Home Equity Loan and an Ultimate HELOC. When financing a remodel, be sure to set aside about 10 to 15% of your budget for unexpected expenses. You want to be sure you have enough to complete your project.