Ten of the best ways to add value to your home
- Convert your garage to living space.
- Extend the kitchen with a side-return extension.
- Loft conversion to add a bedroom.
- Increase living space with a conservatory.
- Apply for planning permission.
- Kerb and garden appeal.
- Get a new bathroom. Potential Value Added: 3-5%
- Make the living area open-plan. Potential Value Added: 3 to 5%
Remodeling may not be as exciting as buying a new home, but it could be a more cost-effective move in the end. Sellers may receive a higher sales price for their home, but they'll likely pay more when they go to take out a mortgage for a new property. Plus, there are other costs to be aware of.
But, if you're trying to make the decision for yourself, follow these five key steps.
- Determine whether remodeling or moving is more cost-effective.
- Research your real estate market.
- Evaluate your emotional attachment to the community.
- Consider your timeline needs, whether you want to move or improve.
If you're talking about a fixer-upper with pretty major renovation costs, you're going to have to spend at least 10 percent of the home's value, or around $30,000.
Loan options for remodels
- Personal loans: A bank loan is often the first choice for individuals with healthy credit scores and income.
- Home equity loan: With this program, you can access up to 80% of your home's value to consolidate debt or renovate your home.
The amount homeowners spent has not changed in the past three years, but the cost of renovations has, thanks to a shortage of labor and rising prices for materials. That combined with the rising costs of labor and more recently products and materials, [so] we are looking at rising prices for home renovation services.”
Old houses can be bought for less. If you're looking for a true fixer-upper, you'll likely pay less than you would for a new home. And if you do the renovations yourself, you can save thousands of dollars in the long run and you'll end up with a great investment. Here are 32 ways to save during a remodel.
Whole Home Remodel – Where to Start
- Determine what you can remodel yourself – and what requires a contractor.
- Determine your budget.
- Decide on the design and style of your home.
- Acquire the appropriate permits.
- Research builder's risk insurance.
- Create a timeline and stick to it.
- Get started!
- Check Past Estimates. Take a look at your estimates for past projects that are similar.
- Calculate Materials Costs. Now put together a list of materials you'll need to do the home repair job.
- Calculate Labor Costs.
- Accommodate Specialty Costs.
- Add Your Mark Up.
- Don't Discount.
When it comes to saving money on home renovations, there are a few tried-and-true techniques.
- Take a DIY approach where you can.
- Use creative approaches to make your space more beautiful.
- Look for recycled materials.
- Check the ROI of your home renovation projects.
- Plan for home improvement expenses.
A standard kitchen renovation costs anywhere from $15,000 to $40,000, with the median overall spend currently sitting at $20,000. For this budget range you can expect to choose engineered stone benchtops, polyurethane cabinetry and a glass splashback.
For example, the national average ROI for a major upscale kitchen remodel is almost 54%. That means you recoup about $68,000 after spending around $126,000. What about a smaller renovation project? The average cost of a minor kitchen remodel is about $21,000, and the average amount recouped is $17,000.
10x10 Kitchen Remodel CostsA 100 square foot kitchen renovation costs $15,000 to $30,000.
If you need to choose which room to remodel first, you'll want to choose the room that will recoup the remodeling costs and create actual equity. This is why experts agree that choosing to remodel your kitchen or bathroom first is traditionally the smartest move.
An average 300 square foot addition costs $25,800 to $62,400 while a 400 square foot addition runs $34,400 to $83,200.
Markup ComponentsAccording to the construction-cost website, Get-A-Quote.net, small contractors generally book a markup of about 20 percent. Typical administrative expense, which allocates for office space, utilities, supplies and support staff, comes in at 8 percent percent, while net profit begins at 8 percent.
Many carpenters charge hourly rates for their work, so if you're wondering how much you should pay a carpenter per hour, know that they typically start charging from $32 an hour for simple smaller work, but that their hourly rates may also exceed even $120 for more complex specialist tasks requiring higher skill set.
As a rule of thumb, general contractors will charge between 10 and 20 percent of the total cost of your renovation or remodel. This rate will likely depend on the size and scope of your project, your geographic location, and the materials, labourers, and permits required for the job.
