Business and Finance

Best bets for remodeling rewards
Written by Heather J. Miller Tokarz

If you’re like most homeowners, you want some reassurance that the cost and inconvenience of a remodeling project will pay off when you sell your home. If you hope to get more than just personal enjoyment from your home improvements, it’s wise to try to identify a project that will offer the greatest potential for a return on your investment.

What projects are likely to be profitable? According to a 2009 Cost vs. Value Report published by REALTOR® Magazine, deck additions (80.6%), kitchen remodels (72.1%) and bathroom remodels (71.0%) top the list of projects from a value perspective. Next in line are new roofs (60.5%), family room additions (65.3%) and master bedroom additions (65.2%). No matter what the research says, ultimately you should choose a project within your budget that you believe will make your home more livable and desirable overall.

Before you pour money into a big remodel, take care of essential maintenance. Repairs and enhancements that bring your home up-to-par with the neighborhood should be performed first. Leaky faucets, squeaky doors and broken windows need to be fixed. While you may not recoup every penny you put into these particular projects, you will have a better chance of attracting a serious offer. Simple and affordable cosmetic fixes such as fresh paint or new fixtures can go a long way to add appeal and make a good impression on prospective buyers.

Try to stay ahead of the curve and well within your budget as you plan your improvements. Go to open houses and check out your competition. Be mindful of trends in remodeling magazines, but avoid being too trendy. When your eventual plan is to sell, it’s best to keep your makeover on the conservative side so as not to scare away the average buyer.

Before you start your remodeling project, seek professional advice. A home inspection or consultation with a real estate professional can help you determine which projects would most likely add to the attraction and selling price of your home. A contractor can provide cost estimates to help you determine the scope of your project. In addition, a financial advisor can help you determine whether there’s room in your budget to remodel or if it would be advantageous to apply for a home equity loan to fund the improvements.

No matter how much research and planning you do, there are no guarantees that your remodeling investment will pay for itself down the road in the form of a higher selling price. The housing market is sensitive to many factors out of your control, so focus on what you can control. Pay attention to home features that attract buyers in your area, be conservative in your spending and manage your expectations, and you probably won’t be disappointed in your results. At a minimum, you will have a nicer home in which to live

As an experienced experienced advisor, Heather knows that everyone’s financial picture is different, and that priorities change depending on their time horizon, how they accumulated their wealth, and their long- and short-term goals. So Heather helps each of her clients develop a strategy tailored to their unique needs and goals.

She is licensed and registered to conduct business in VA. Based on licenses and registrations she holds, she may also conduct certain business in MD, NC. She has a BA in Russian Studies from Mercyhurst College and is an active member of the Ocean Front Jaycees.

For more information, visit www.ameripriseadvisors.com/heather.j.miller