The housing market has been taking a few twists and turns throughout the year. A recently released report from Arch Mortgage Insurance found that housing affordability decreased an extra 10-15 percent, with the monthly mortgage payment needed to buy a home increasing by five percent. With those statistics in mind, it’s important that a homeowner adds value to their home with home renovations.
Buying and selling a home is not always viable option for many people, so sometimes it’s best to hold on to what you’ve got and make it that much better. But there are good renovations and bad renovations to be aware of. Not all renovations are actually worthwhile for your home, so it’s good to know which ones add value (and which to avoid).
Projects That Add Value to Your Home
Here’s some projects that add great value to your home. Some additions include basic updates, energy-efficient products, or reinventing a room. Other projects include:
- Remodeling the Kitchen – The kitchen is the core of the home; it’s where homeowners spend the most time. Updates in the room will pay off in the long run as long as you’re smart about it. Don’t make your kitchen the fanciest part of the house. Do yourself a favor by not investing in a deluxe kitchen; add a little low-VOC paint and invest in energy-efficient appliances to save energy.
- Bathroom Addition – If you have one bathroom, get another one. It’ll add that much more value to your home. Any extra room will do the trick, with the minimum size being 18 square feet for a half-bath. A full-bath is around 30 square feet. Look for reduced prices on items like sinks and toilets at Lowes and Home Depot.
Home Renovation Projects That Aren’t Worthwhile
While these projects might seem fun or even necessary, they aren’t good for your house in the long run. Some renovations that are counter-productive are whirlpool baths, sunrooms, expensive landscaping and:
- In-Ground Swimming Pools – Swimming pools come with a high price tag. It may seem like a good idea to install one, but it’s actually harder to sell your home in the long run once you have one. Quite a few people will completely avoid buying a home with a pool, including families with small children. A swimming pool also requires maintenance, which adds another $1,000 to $2,000 to your yearly housing budget.
- Gourmet Kitchens with High-End Accessories – As we said above, be smart about your kitchen. It isn’t worth it in the long run to invest in high-end kitchen products. Things like a $10,000 commercial stove or top-of-the-line Tucson tiles won’t help you if you want to sell your home after renovating it. Long story short, a fancy, gourmet kitchen isn’t going to attract any other buyers.
As you work through the renovations process, make sure that your Bergen County home is protected with a homeowners insurance policy.
About David G. Sayles Insurance Services
At David G. Sayles Insurance Services, we strive to protect the investments of homeowners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (800) 439-0292.