February 15, 2007
Homeowning for n00bs: 55 Ways to Save Money and Build Equity
A house is among the most expensive investments that an average middle-class American makes. Naturally, we want to optimize our earning potential from our property, and often find ourselves making changes to our homes. Drastic remodeling is not always the answer.
In fact, sometimes large-scale remodeling can actually put you at a disadvantage. "Preparing a home for sale means making improvements that will help you sell the home faster -- not necessarily fetch a higher price," says Ron Hazelton, Home Improvement and Remodeling expert.
Home improvements should not cost you a fortune. Here are 55 improvements that can be achieved with almost zero investment.
The Visibility Factor
A neat and tidy property that looks presentable is a very basic and inexpensive way to increase the value of your property in the eyes of a potential buyer.
First, Work on the Outside
External Clutter
Visuals leave a strong impact on memory; a house that looks cluttered and untidy is not a pretty sight for a buyer. While a real estate agent may be able to look through the mess and perceive the true value of a property, buyers won't be so kind. They will simply ignore homes that don't appeal to them instantly. So heaps of leaves, discarded beer cans, and barbecue leftovers are a sure no-no for the exterior of your home.
Pet Implications – What's that smell?
After living with a certain smell for a while, home owners get used to it. This will, however, not stop visitors and potential buyers from noticing them. Households that have pets are immune to the "pet smells" that are embedded in the home. Unpleasant smells such as those of a pet (or Asian spices that are sometimes used in the kitchen) remain trapped in carpets and outsiders catch them immediately. Just as the presence of an unpleasant odor in the house reduces its value, ridding your home of unpleasant smells increases its value.
Visible Repairs
Expert renovator Steve Berges states, "When renovating a house or preparing it for sale, spend money on things a buyer can see… Fix up the exterior first, then the interior." When you get into "buyer mindset," you will easily understand that an unkempt yard and ugly exterior means that the buyer may never reach the inside the house. So one of your most urgent tasks is to complete external visible repairs.
Landscaping
Once you're done with the external repairs, take a look around the yard. Landscaping comes next - prune hedges, trees and shrubs, mow the lawn, paint the fence, and if possible, add some flowering plants in the yard.
"Keep your lawn in good condition and mow it. This includes using a weed whacker to get in the tight corners and along the edges of sidewalks and the house. Trim the hedges, get rid of weeds, and mulch the flower beds. If you don't have much to work with, plant some flowers or install some landscaping appropriate for your home and climate." (How to Inexpensively Increase the Value of Your Home)
Danny Lipford, home improvement expert offers tips on everything from planting to pruning to mowing your lawn, here.
Why the Roof?
Does the roof matter at all, and if yes, then how? From the curb, "the roof takes up 30% of what you see," says Berges. "If you have a nice-looking roof, that goes a long way in curb appeal for the house." So if the roof is among the first things the buyer will notice, it is worth your while to make it look appealing. You don't have to go "over the top," just ensure that it is clean and looks neat.
Why Visibility? – Choose Where to Spend
"Visibility adds value," Berges says. "The improvements that are most visible are the things you need to focus on." If you have to choose between spending money on repairing the foundation and the roof; you need to choose the roof – simply because it is more visible.
"Yikes!" appeal
According to the bankrate.com article, "3 simple ways to increase your home's value," when working on increasing the value of your home, "Focus first on what Berges calls the "Yikes!" appeal -- clutter, trash and bad smells that drive down a home's value." Once these basics are in place, then you can pay attention to other things. For instance, you may have spent a small fortune on re-doing your kitchen and bathrooms; but if your home is high on "Yikes!" appeal, potential buyers may not wait around to see the inside of your house.
From Outside to Inside
Next Stop – Inside
Now that you're done with making your exterior look presentable, take a hard look inside. Clutter such as toys, magazines and newspapers thrown carelessly around should be cleared up to make the interior of your home presentable. A tidy house not only looks larger, but also more elegant.
Wash up!
Once you've handled clutter, start cleaning up. Ensure that everything that can be seen is clean. Washing walls, siding and windows is a lot cheaper repainting or replacing. Sometimes a through cleaning will make your home's finishes look good as new. "Pressure-wash your home's exterior, and wash interior walls. Clean your windows so that you can't tell they're there." (How to Inexpensively Increase the Value of Your Home)
Once the outside and inside of your house are clutter-free and clean; ensure that all "visible" repairs (such as the hanging rain gutter) have been conducted. You can now spruce up your house by spending on some improvements. Remember, you don't have to go over the top, but if you spend sensibly, you can recover "as much as 80% to 90% of the cost of home improvements in the form of higher home values." (moneycentral/homebuyingguide)
Dramatic Doorway
If its true that first impressions are important, especially when you're selling, then it makes sense to make your front door look appealing. Linda Kast, editor-in-chief of Better Homes and Gardens Kitchen and Bath Ideas, says, "Do something with your front door. Paint your door, or trade out the door for something more stylish with windows in it or architectural interest."
Entry Way
Almost all experts agree that your entry way should have tiles or a hard surface such as marble. This requires minimal investment; and instantly increases the charm of your home.
Walls and Paints
To instantly increase the equity of your home, it almost always makes sense to get the interior repainted wall-to-wall. "People don't want to fool around with painting and replacing carpet and fixing the house up. In the world of fast food and instant gratification, people just want to buy a house and move in," says Berges.
Painting yourself is relatively inexpensive. Here are some tips - "First, patch up any holes, no matter how small. To get a silky smooth finish, apply a coat of primer. After the primer dries, lightly sand it with fine grit sandpaper (220 grit). Apply the first coat of latex paint, and then lightly sand that layer also. Wipe the walls down with a damp cloth after each sanding session. Then apply the final coat of latex paint." (How to Inexpensively Increase the Value of Your Home)
More tips
- Avoid the cheap rollers; they will make your walls look blotchy.
- A neutral color like beige is a good bet because not only will it make the house seem larger, it will also be favored by a larger number of people.
- Semi-gloss paint will make your walls seem brighter.
- If your walls have imperfections, such as dents in the drywall or cracks in the plaster, you can use flat paint to hide those imperfections.
Flooring and Carpeting
Another inexpensive way to increase the value of your home is to do something about the carpet. You have several options. You can either clean the existing carpet, or you can get the carpets and vinyl flooring replaced. For carpet cleaning, you can shampoo or steam clean your carpets, or use a dry cleaning system that "requires no water or steamer rentals, and which dries instantly and kills virtually all mold and bacteria. Apply according to the manufacturer's instructions, and then vacuum. If all else fails, get a professional to do the carpets for you. You'd be surprised how much better your carpet will look after a good cleaning." (How to Inexpensively Increase the Value of Your Home)
If you are interested in a trendy look, the current hot favorite is hardwood flooring. If your old carpet looks shabby, you can simply remove it, and go with the hardwood floor that has lain intact beneath. "… in a lot of cases old houses have nice hardwood flooring underneath the carpet. Rip up a bit of carpet in a closet or other inconspicuous area to check the floor's condition, and compare the price of restoring the hardwood to that of installing new carpet." (How to Inexpensively Increase the Value of Your Home) Remember to polish your wood floor. Buying some attractive new scatter rugs livens up the space and adds aesthetic appeal to the room.
Window Dressing
Putting up new curtains and blinds is a good idea because with time the colors on your blinds and curtains tend to fade. Buy relatively affordable blinds and curtains to make a better impression and increase the equity of your home.
Light Switches
Installing modern light switches and outlets is another low-cost improvement that has a high impact. Many of the new style switches can be easily installed using the wires already running to the old switches. When you replace the switches, not only do they look impressive, they give the impression that the electrical wiring in the house is newer than it really is. And while you're at it, install dimmer switches – these are especially desirable.
Energy Saving
Investing in energy-saving projects - such as energy efficient windows, insulation, updated water heaters and heat pumps help you save money now, and increase the appeal to future homebuyers. More about Energy Saving:
17 ways to save on energy
Winterizing your home
Central Heating
"Central heating can be expensive to install in your home but future potential purchasers may be put off if you don't have it, so you should recoup your money with this improvement." (Home Improvements)
Ceiling Fans, anyone?
"If you live in an area where warm weather is common, replacing built in ceiling lights with ceiling fans will improve the form and function of your home. You can find ceiling fans at a "big box" retailer or at your local hardware store." (How to Inexpensively Increase the Value of Your Home)
Kitchen Cabinets with Inserts
Outdated or worn cabinets in your kitchen can make the entire kitchen look drab. However, refinishing them is relatively inexpensive and easy to do. Remember – if the kitchen is small, lighter colors on the cabinets will give the impression of a larger space.
Compartments for drawers help organize spices, pots & pans, and lids. Inserts that allow for easy organization are very popular in the market right now. Due to an increase in demand, you can now choose from a greater variety in custom cabinetry and do-it-yourself lines.
Bathrooms
You don't have to spend a fortune to make your bathroom look more presentable. Look around and clean up or repair where required. Remove stains from toilets, tubs and sinks. If any fixtures are outdated or leak, replace them. Replacing the shower curtain is another cheap way to instantly brighten the look of the bathroom. It is also important to inspect, repair and replace any worn out grout in tiles. Caulking all joints for a watertight seal is another good idea to make the bathroom more usable. Also ensure that the faucet works properly, shuts off quickly, and looks good. If required, repair or replace it.
Window Boxes and Hanging Baskets
"Window boxes and hanging baskets add color and make a home look cared for. Viewed from inside a window box can help to disguise an unattractive outlook as well as increase privacy for overlooked properties." (Home Improvements)
Camouflage Upholstery Flaws
Faded, worn or outdated upholstery is a huge put off, even in an otherwise presentable house. Covering dated or worn sofas and chairs with large throws in a neutral color is a good idea. This way, they'll remain camouflaged when people look around.
Ambience
Think about what makes inviting places appear so appealing - stylish decorations, pleasant fragrances, and soothing sounds. How can you adapt this for your living space? When you have an open house, make sure that you have fresh flowers arranged in strategic places, cookies laid out, a scented candle or potpourri, and soft classical music playing in the background. Also, use floor and table lamps in every room lamps give a softer light, and increase the aesthetic appeal of a space. Using sheer curtains is also a good idea; these curtains let in sunlight and make the space appear more cheerful.
What's with the Square Footage?
"Get a professional floor plan company to check on your home's square footage, which is sometimes higher what your county assessor has recorded. Because homes sell for hundreds of dollars per square foot, even a small increase will more than pay for the service (typically a few hundred dollars). You'll be able to list your home for more money, but at the same price per square foot." (How to Inexpensively Increase the Value of Your Home)
When Simulations are better than the Real Thing
Lipford says, "You might believe that a high price tag guarantees the best products, but that's not always true. For example, you don't have to use marble in the foyer. Tile that closely simulates marble is a quarter the price and far more durable. The same is true for some trim boards. You might ask for poplar or high-grade pine, but composite lumber, which is competitively priced, remarkably consistent, free of knots and preprimed, will do just as well or better."
Spend to Save Money
Recently when I visited a sale; I was so caught up in preventing myself from spending too much, that I even skipped some things (like scatter rugs, footmats and coasters) I that really needed for my new house. The sale is over now, and I'll have to either wait for the next year to get those items; or buy them at full-price now. We do this kind of thing sometimes when remodeling too. Lipford elaborates, "I'd be rich if I had a nickel for every time I've heard "I wish I had extra wiring and plumbing put in when we had the walls opened up," says Lipford. He elaborates, "The cost of running water-supply lines, waste pipes and wiring for telecommunications (phone, fax, computer) and television (cable, satellite) is pennies on the dollar compared with opening walls and doing the work later. So try to think of potential uses for a room and install needed services at that time. Large-scale remodeling is complex -- things aren't always what they appear to be. Spend to save money? It might sound like advice for fools, but it often does hold true."
Hold Your Horses
When glamorizing your home, remember to not go overboard. Think about the kind of neighborhood you live in, before making any major changes that require huge expenses. Explains Berges, "On the upper end, buyers expect well-kept yards and painted walls, of course, but they often yearn for amenities that middle-class people might not expect. For example, one of the hot trends in the Hamptons on Long Island, says architect Marcia Previti of Gillis Previti Architects, is for two dishwashers in the kitchen." However, incorporating this feature in a middle-class neighborhood could actually put you at a disadvantage; because your house will become unaffordable for buyers.
"Keep up with the Joneses, but you don't want to over improve," explains Berges. "You should never - unless you absolutely don't care at all about eventual resale value - improve a house to the point where its desired sales price would be more than 20 percent higher than the most expensive of the other houses in the immediate neighborhood." (Home Improvements)
Improvements that can Reduce the Value of your Home – What not to do
Breaking Walls; Reducing Rooms
While breaking a couple of walls can make a space look larger, brighter and more airy, remember that it also implies fewer rooms. And fewer rooms can mean that your property may possibly be devalued.
That Oh-So-Desirable Swimming Pool
"A swimming pool may be the height of luxury, but potential buyers may be concerned about security risks for small children and expensive running costs. A pool may recoup as little as 10 percent of the initial cost and so should not be considered to be a good house improvement." (Home Improvements)
Bedroom Count
Whatever you do, never rearrange the interior of your house in a way that reduces the total number of bedrooms to less than three.
That Extra Bathroom
Adding a third bathroom purely for usability and convenience of the family members may be fine. But don't expect this addition to a two-bath house to pay for itself in the future.
Before You Buy – What to Look for when House Hunting
Assuming you haven't purchased a house yet, here are a few things you should look for in order to get good value for your money, and to build equity?
"When you're house-hunting it's important to be able to identify the things that increase the value of a home and those that actually detract." (20 things that can alter the value of your home; Dana Dratch) The features of the home should not be "way out" for the particular neighborhood.
The Kitchen
Size Matters - A Large Kitchen
The days are gone when a dark dreary corner was assigned to the kitchen. Small, crammed kitchens are no longer considered acceptable. The kitchen has finally come into its own, being recognized as a significant part of the house. Since family members tend to spend a lot of time in the kitchen, a large kitchen with clearly delineated work areas for different tasks is usually desirable.
The Kitchen Counters and Floor
The bare minimum that you need to check for in your prospective kitchen is that the countertops are serviceable and shouldn't need replacement soon. Usually, solid surface counters and high-quality flooring, such as wood, laminate, tile or stone are considered desirable.
Kitchen Appliances and Gadgets
Look for a house with newer appliances that are in working order. Outdated gadgets means that you will have to allocate funds for replacements – an avoidable expenditure.
Breakfast Bar
Ever had dinner guests arrive early and hang out in the kitchen with you while you give the final touches to the meal? When guests enter your kitchen, you usually end up offering them appetizers in the kitchen itself. For such times, as well as for kitchen family breakfasts, a breakfast bar or snack counter in the kitchen is a desirable feature – look out for one when house-hunting.
Dining Area Within
Though a separate dining area exists in the house, a cozy corner designed for that occasional kitchen meal makes the kitchen more attractive.
View from Kitchen – Windows
If so many family members spend so much time in the kitchen, it follows that a good view does not hurt. A strategically placed window – maybe over the sink – adds to its desirability.
The Bathrooms
The Master Bath
If appropriate for the neighborhood, look out for that master bath that "give a little room to roam."
The Tubs - Spa / Whirlpool / Jacuzzi
Again, if suitable for the neighborhood, a master bath consisting of a whirlpool tub is a plus.
Separate showers
Within the master bath, look for the additional separate shower with steam and multiple jets. Also, when you are checking for all this, ensure that the plumbing is large enough to carry an adequate volume of water and that the hot water heater is big enough to accommodate all amenities.
Tim Garrison of Home Towne Construction in Kettering says, "With the busy lifestyle we all lead, people don't have time to wait 15 minutes for the whirlpool to fill. Today, they'd rather jump in the 'car wash shower,' with multiple shower heads and body sprays."
Separate Toilet
In some areas, it is desirable to have a separate room for the toilet. If you are unsure about whether or not some of these features are assets or liabilities for your neighborhood, seek the advice of an experienced real estate agent or a licensed appraiser who is familiar with your area.
Other Rooms
Natural Light
When you are looking at a home, ensure that all the rooms have plenty of natural light during an average bright day. Nobody wants to spend time in dull dark rooms – these would significantly reduce the value of the home.
Spacious Feel
An airy, bright spacious house transcends trends, and remains desirable at all times. So look out for this feature when house-hunting.
Storage - Walk-in Closets
Again, depending on how stylish the neighborhood is; look out for walk-in closets – separate 'his' and 'hers' closets too! Large amounts of storage space never goes out of fashion.
Windows
Lipford says, "Poor windows can not only make your home feel uncomfortable but also add hundreds to your heating bills." Don Strong, a remodeler with Brothers Strong Inc., a Houston remodeling firm says about insulated windows, "Though the cost of fitting new insulated windows for an average 2,600-square-foot home is around $10,000, they pay for themselves in five years."
Master Suite
A tastefully done-up master suite is an asset any day. Look out for a stylish bathroom with the special features mentioned above, lounging areas, and walk-in closets.
Natural Materials
- Natural materials such as ceramic tile, hardwood floors, and granite are quite hot right now.
- Replicas will also do.
- For bathroom and kitchen floors, ceramic tile or wood works better than, say, linoleum, which can tear.
- For the rest of the house, wood or laminate products are preferred over wall-to-wall.
- If the house has carpeting, make sure it is well maintained.
Skylights
And who doesn't dream of gazing at the stars on a clear summer night? Lipford says about skylights, "Even small units make a big difference in the way rooms look and feel." Further advice from Lipford, "…stay away from inexpensive units with plastic glazing. Although they are cheaper initially, the bottom line is they don't last and many of them leak. The better choice is a high-quality curbed skylight with energy-efficient glazing -- and the factory flashing kit made for it. The kit won't add much to the cost, but it will mean a leak-free installation."
Also, don't opt for the venting units that open; people simply find it too tedious to use them. Instead, go with the fixed unit and save yourself some money. Ron Phipps, principal broker with Phipps Realty & Relocation Services in Warwick, R.I. says, "Well-placed skylights are also a good touch to add value."
Floored
There's more to choose than ever before, as far as flooring is concerned. The variety in carpets includes "Berber", shag carpets, deep piles, and a combination of both. And then there are vinyl floors that have evolved from the economical choice to the designer-look floor. Ceramic tiles, hardwood floors, and laminate floors are all good choices for flooring.
Basement
"If it's dry, it's a plus," says Kenneth Austin, co-author of "The Home Buyer's Inspection Guide." "But it's a negative if it has water problems." A finished basement is what a buyer would look for.
Attic Insulation
"Whether you live in a warm-weather state, as I do, or in a cooler northern climate, it's hard to stay comfortable and keep your energy bills in check if you don't have adequate insulation in the attic," says Lipford. "Typically, houses in warm-weather states should have an R-38 insulation in the attic, whereas houses in cold climates should have R-49," he adds. So check for appropriate attic insulation before you decide to buy that house.
The Outside
Garage
A two-car garage is the norm, so ensure that your prospective home has this feature. Even if you don't have two cars, you can use the space for things such as bicycles, the lawn mower, or the snow blower. And the second car will come in sooner or later.
Trees
The presence of trees is a definite plus. "Mature trees are worth $1,000," says Strong.
Attention to Detail in Outdoor Spaces
If the external space of your prospective home has that extra special touch with decorations such as pergolas and Victorian garden swings, it is a definite plus. The overall appearance of the yard needs to be elegant and consistent.
It should now be possible for you to increase the equity of your home by conducting home improvements intelligently without spending too much. AND you will be in a position to recover most of what you spent! Happy home improving!
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