Fire damage cleanup costs anywhere from $800-$93,000. If you’re serious about treating home improvement as an investment, taking out a loan may be for you. Even small repairs can mean a massive boost for the overall worth of your home. But please remember, if your intent is to treat it as an investment, then the projected increase in value needs to be greater than the cost of loan. Some of the most surprising and biggest loses from home improvements when selling are adding an extra bedroom (-£16,500), extension (-£18,000) and refitting your bathroom (-£2,250).
People can go wild with kitchen remodeling projects but they don’t need to do that. A minor kitchen remodeling project recoups more of the cost than a major one. A minor kitchen remodel had an average cost of $20,830 and of that, $16,699 was recouped for 89.4 percent. A major kitchen remodel project with an average cost of $62,158 returned about $40,560 in resale value for 65.3 cost recoup percentage.
Fixer-upper buyers will discount the price of the home to allow for the repairs then discount it a bit more for the inconvenience. Say a home is worth $100,000 fixed up but it needs a new roof. A new roof might be expected to cost $10,000. A buyer most likely will not offer $90,000 for this home. She could buy an identical home with a new roof for $100,000 and not have the hassle.
Unfortunately, most home improvements do not pay for themselves. If you can’t afford to finance the project in full with cash, know the different ways you can finance your home improvement without putting your home at risk. Also, if you know the difference between tax breaks you get for home repairs or home improvements , you can make the proper deductions at tax time and get some money back from your project. Similarly, if you’re paying private mortgage insurance, home improvements that increase the value of your home could help you eliminate that cost , which, although it doesn’t raise funds for your project, can reduce your housing expenses overall.
According to Remodeling Magazine () you’re less likely to recoup your investment in a major kitchen or bathroom remodel than you are to get back what you spend on basic home maintenance such as new siding. Siding replacement recouped 92.8 percent of its cost, according to the study. The only home improvement likely to return more at resale was a minor (roughly $15,000) kitchen remodel, which returned 92.9 percent. Replacing roofs and windows were also high on the list, returning 80 percent or more at resale.