LOVE IT OR LEAVE IT: TWO REASONS TO FIX UP A HOME

By DR. RUTH MIRON-SCHLEIDER
Recipient of NJAR Circle of Excellence Award
1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010

As a homeowner, you have probably entertained, at some point, the prospect of making home improvements that will enhance your lifestyle, add years to your house, and increase its future resale value. Whether you are considering a major remodeling project or a minor cosmetic touch-up, you need to carefully consider several factors:

How long do you plan to remain in your home?
Which home improvements will add the most value and/or life to your home?
What are some common mistakes you need to avoid?
How do you choose the right contractor?

HOW LONG DO YOU PLAN TO REMAIN IN YOUR HOME?
If you plan to stay in your home for the next 10 to 20 years, you might want to consider extensive renovations and additions, such as kitchen and bathroom remodeling, room additions, and landscaping. However, if you plan to move within the next 2 years, it is generally best to limit yourself to minor repairs and cosmetic improvements, such as painting and carpeting.

THE MOST COST EFFECTIVE HOME IMPROVEMENTS:
It is important to realize that the return on your investment will not always increase the value of your home. Depending on the project and the amount of professional labor involved, you may retrieve as little as 30% or as much as 125% of your original costs.

Common projects that provide worthwhile returns on your investment include painting the exterior, upgrading your landscaping, laying down new flooring and/or carpeting, wallpapering and painting.
Remodeling your kitchen may be the most important improvement. It pays to buy the best flooring, cabinets, counter tops, and energy efficient appliances (such as a dishwasher or an oven) that you can afford. Average cost $25,000 to $60,000.
Adding a bathroom will not only make your life more comfortable, but it will also add great appeal to prospective buyers. Average cost $15,000 to $22,000.
Consider updating or remodeling existing bathrooms. An older bathroom tends to date the home in the eyes of the buyer. An average makeover generally runs from $5,000 to $15,000.
A deck or a patio will serve as a welcome extension to your home for casual outdoor entertaining. The cost averages $3,000 to $$6,000 for a patio and $5,000 to $15,000 for a deck.
Adding a garage or enclosing an existing carport is a valuable enhancement to older homes that do not have these amenities. The average cost ranges between $10,000 and $20,000, but could be considerably more.
Repairing or re-roofing your house will not only enhance the life and curb appeal of your home but will also significantly boost its resale value. Don’t be tempted to limit roof repairs to cosmetic work. An average repair may run from as little as $100 to as much as $1,000. Re-roofing averages from $3,000 to $13,000, but may be significantly higher.
Finally, in considering undertaking any home remodeling or updating projects, it is important for you to recognize the difference between home maintenance and capital improvements. Anything that you do to increase the value of your property, to add life to it, or to adapt it to a new use will probably qualify as a capital improvement, which can count in your favor for tax purposes when you sell the house. But be sure to keep meticulous records including all receipts.

Good luck with your home improvements!!!

Ruth Miron-Schleider, a 33-year resident of Bergen County, is a Certified Residential Specialist, an e-PRO Internet Professional and an Accredited Buyer Representative. She is a member of the Eastern Bergen Board of REALTORS®, National Association of Counselors, the Senior Advantage Real Estate Council, and the Graduate Realtor Institute. For a complimentary consultation, call her at MIRON PROPERTIES, 201.266.8555, or contact Ruth via e-mail: Miron@MironProperties.com.

Information deemed reliable but not guaranteed, subject to errors and omissions.
No parts of these articles may be reproduced in any form or by any means without written permission of the author.