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Repair versus Improve |
As a home owner you can appreciate and understand the value of your home. But where does home repair end and home improvement start? To maintain the value of your home it is important to maintain your home. This means keeping all parts of your house in good working order.
For example, if you have a pipe leak, repair the leak as soon as possible and repair any water damage your floors. An improvement, on the other hand is something that you do to improve your home, which goes above and beyond repairing wear and tear on a house. An example of an improvement would be replacing fixtures in a bathroom to give the bath a more updated look.
Although a home improvement project might seem like a good idea, be sure you can afford the cost of the project and evaluate if the improvement is really worth your time and money.
The Joy of Home Improvements
One of the benefits of home ownership is the opportunity to improve and upgrade your home to meet your specific needs. While remodeling can be stressful, home owners can gain many advantages from home improvements and remodeling.
Some of these advantages are:
- Investment - Customizing your existing home can be less costly than having a custom home built.
- Familiarity- Remodeling doesn't require moving from a familiar neighborhood and/or school system.
- Efficiency - Remodeling can be a more efficient use of resources. According to the American Homeowners Foundation, selling a home and moving typically costs around 8-10% of the value of the home. Most of this expense consists of moving costs, closing costs and broker commissions, which do not add to the value of the home.
According to the National Association of Home Builders, the remodeling improvements that yield the highest returns on investment are:
| Minor kitchen remodel |
104% |
| Bathroom addition |
95% |
| Major kitchen remodel |
94% |
| Family room addition |
85% |
| Bathroom remodel |
85% |
| Master suite conversion |
83% |
| Attic bedroom conversion |
81% |
| Exterior remodel |
78% |
| Deck addition |
75% |
| Sun space addition |
70% |
The most common home improvement that actually detracts from a property's value is the addition of a swimming pool. Many potential buyers look at a pool and see only the expense of upkeep and the potential danger to small children.
When you get ready to sell a home, it pays to be realistic about the desirability of improvements. Sometimes a minor facelift is all that's needed for increased marketability and a faster sale, but not necessarily at a higher price. If you are in doubt about the value of home improvements, have a professional appraisal or ask your RealtorŪ for an honest opinion.
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| Idaho Housing and Finance Association. |
| 565 W. Myrtle P.O. Box 7899 |
| Boise, ID 83707-1899 |
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| Copyright © 2009 Idaho Housing and Finance Association. |
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