The DIY generation has had no qualms about trying to tackle the biggest DIY project, home improvements. More and more we are seeing older homes being rehabbed and modernized with both major and minor home improvements. In one of our recent videos on the HGTV movement, we talked about shows like Fixer Upper making massive home renovations look easy and fun which is a big reason people are motivated to take on a project of this scale. Before you jump on the bandwagon and buy a home that needs repairs or even start improvements on your current home, ask yourself industry expert Ralph DiBugnara’s three questions to know if you should make the plunge.
Will this home improvement improve the value of the home?
Some repairs will enable you to not only improve your living situation but increase what your home is worth. The renovations that give you the most bang for your buck value wise are kitchen and bathroom remodels. Some renovations such as knocking down walls and expanding bedrooms maybe visually pleasing, but it will not necessarily help you sell your home for more money when you’re ready.
How am I going to pay for this home improvement?
You want your cost or carrying cost to make sense when financing improvements. Home equity loans, rehabilitation mortgage loans, and specialized financing for home flippers usually carry lower interest rates. Credit card loans, personal loans or financing offered by contractors and home improvements companies usually carry high interest rates and will end up costing you more money in the long run.
How do I determine what repairs to make?
Ralph DiBugnara’s best suggestion would be to look at what homes are selling within two miles of your home or the home you are interested in. If you see them selling for higher values because they have updated features including landscaping, bedrooms, kitchens, outdoor deck or bathrooms then you have a good gauge of what to do.
Want to know what home improvements will give you the most bang for your buck? Check out this video.