by Roxie Dinstel
FAIRBANKS — It is the season for home improvements. Many of us are taking advantage of the warmer weather to upgrade our homes. If you are considering making major improvements to your home, realize you might not recover the cost of the work when you sell your property. Some improvements add value to ypur home, others do not. Some changes can even make it harder to sell the home.
Unless money is no object, most experts recommend the amount you spend shouldn’t exceed 30 percent of your home’s value. It is easy to go overboard on remodeling costs, but that may not translate into a greater value for your home. Comparable sales of homes in your area will have more to do with the final value of the home than any improvements you make to it.
It doesn’t mean that upgrading your home wouldn’t make sense. An improved kitchen or an extra room could pay off in usage, enjoyment or a greater sense of pride in your home. These things should be your primary consideration, the effect on the value of the home should be secondary.
There is no way of knowing for sure how much of your investment you will get back. That depends on the kind of project, the quality of the work, whether it is financed or paid for in cash, whether you do the work yourself, the area you live in and the housing market when you decide to sell.
Figures listed in Remodeling magazine give an idea of what you might recover from your remodeling project. These numbers are for Alaska, Hawaii, Washington, Oregon and California.
Project Cost recouped:
Minor kitchen remodel 84.1 percent
Major kitchen remodel (upscale) 66 percent
Master suite addition (upscale) 56.8 percent
Window replacement (wood) 83.3 percent
Garage addition
60.3 percent
Bathroom addition
63.2 percent
Sunroom addition
53.3 percent
I’ve chosen some popular remodeling projects for our area, but more are listed at www.remodeling.hw.net/2010/costvsvalue.
What surprised me about these figures is that some of the simplest and least expensive projects have the greatest payback. Replace your entry door with a steel door and you might recoup as much as 112 percent of the investment. Replace your garage door and recoup 96.4 percent of the investment.
So what can we do inexpensively to update our homes? Here are the top five remodeling projects that can be done on a budget.
1. Paint — A little paint or varnish can go a long way toward improving your home’s value. One fresh coat (along with a little sanding and caulking) covers scuffs, chips, cracks and other damage that convey wear and tear. Make your first priority the front door.
2. Basic maintenance — Aim to complete a few small maintenance projects each year like fixing a creaky floorboard or replacing a cracked switch plate.
At my house, the summer project is the front porch and back deck. Some paint and a few screws will improve the appearance of my home.
3. Energy-efficiency upgrades — Not only will these improvements cut your energy bills, but they also will be attractive should you decide to sell your home. With energy prices high, it can make a difference.
Federal tax incentives are available for insulation, windows, heating systems and energy efficient refrigerators, washering machines and dishwashers.
4. Install new fixtures — Giving a room a more modern look requires little more than a screwdriver and some new fixtures. Replace faucets or light fixtures. New drawer handles or knobs can cost as little as $2 each. What about replacing doorknobs? All these can make your house look new at a bargain price.
5. Landscaping — A good first impression is crucial. Savings can be had as well, as long as you plant wisely. Drought-resistant shrubs require less water and perennials don’t require replanting. Leafy deciduous trees shade your home from the summer sun, and allow the winter sun in.
The bottom line is you should go into any home improvement project with the mindset that you’re doing this for enjoyment, not as a way to make money.
Roxie Rodgers Dinstel is a professor of extension on the Tanana District Extension Faculty. Questions or column requests can be emailed to her at rrdinstel@alaska.edu or by calling 474-2426. The Cooperative Extension Service is part of the University of Alaska Fairbanks, working in cooperation with the U.S. Department of Agriculture.
It doesn’t mean that upgrading your home wouldn’t make sense. An improved kitchen or an extra room could pay off in usage, enjoyment or a greater sense of pride in your home. These things should be your primary consideration, the effect on the value of the home should be secondary.
There is no way of knowing for sure how much of your investment you will get back. That depends on the kind of project, the quality of the work, whether it is financed or paid for in cash, whether you do the work yourself, the area you live in and the housing market when you decide to sell.
Figures listed in Remodeling magazine give an idea of what you might recover from your remodeling project. These numbers are for Alaska, Hawaii, Washington, Oregon and California.
Project Cost recouped:
Minor kitchen remodel 84.1 percent
Major kitchen remodel (upscale) 66 percent
Master suite addition (upscale) 56.8 percent
Window replacement (wood) 83.3 percent
Garage addition
60.3 percent
Bathroom addition
63.2 percent
Sunroom addition
53.3 percent
I’ve chosen some popular remodeling projects for our area, but more are listed at www.remodeling.hw.net/2010/costvsvalue.
What surprised me about these figures is that some of the simplest and least expensive projects have the greatest payback. Replace your entry door with a steel door and you might recoup as much as 112 percent of the investment. Replace your garage door and recoup 96.4 percent of the investment.
So what can we do inexpensively to update our homes? Here are the top five remodeling projects that can be done on a budget.
1. Paint — A little paint or varnish can go a long way toward improving your home’s value. One fresh coat (along with a little sanding and caulking) covers scuffs, chips, cracks and other damage that convey wear and tear. Make your first priority the front door.
2. Basic maintenance — Aim to complete a few small maintenance projects each year like fixing a creaky floorboard or replacing a cracked switch plate.
At my house, the summer project is the front porch and back deck. Some paint and a few screws will improve the appearance of my home.
3. Energy-efficiency upgrades — Not only will these improvements cut your energy bills, but they also will be attractive should you decide to sell your home. With energy prices high, it can make a difference.
Federal tax incentives are available for insulation, windows, heating systems and energy efficient refrigerators, washering machines and dishwashers.
4. Install new fixtures — Giving a room a more modern look requires little more than a screwdriver and some new fixtures. Replace faucets or light fixtures. New drawer handles or knobs can cost as little as $2 each. What about replacing doorknobs? All these can make your house look new at a bargain price.
5. Landscaping — A good first impression is crucial. Savings can be had as well, as long as you plant wisely. Drought-resistant shrubs require less water and perennials don’t require replanting. Leafy deciduous trees shade your home from the summer sun, and allow the winter sun in.
The bottom line is you should go into any home improvement project with the mindset that you’re doing this for enjoyment, not as a way to make money.
Roxie Rodgers Dinstel is a professor of extension on the Tanana District Extension Faculty. Questions or column requests can be emailed to her at rrdinstel@alaska.edu or by calling 474-2426. The Cooperative Extension Service is part of the University of Alaska Fairbanks, working in cooperation with the U.S. Department of Agriculture.
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