How to Set a Home Renovation Budget

Before you start picking out tile and paint chips, be sure you know how much it will cost to remodel your house.

Ready for a kitchen renovation? Anxious for a bathroom remodel? The easy part is knowing your goal for home remodeling — whether you’re trying to keep up with your growing family, add office space, or increase your home’s value.

But figuring out how to plan a home renovation that doesn’t break the bank can be tricky.

Here are five key steps in planning your home remodeling project.

1. Estimate home renovation costs

As a general rule of thumb, you should spend no more on each room than the value of that room as a percentage of your overall house value. (Get an approximate value of your home to start with.)

For example, a kitchen generally accounts for 10 to 15 percent of the property value, so spend no more than this on kitchen renovation costs. If your home is worth $200,000, for example, you’ll want to spend $30,000 or less.

A kitchen remodel should cost no more than 10 to 15 percent of your home’s value. Photo from Offset.

Something else to keep in mind: Contrary to popular belief, kitchen renovations offer among the lowest return on investment, according to analysis from Zillow Talk: The New Rules of Real Estate. Every dollar you spend on a kitchen remodel increases the value of your home by 50 cents.

The highest return on investment? A mid-range bathroom remodel.

2. Consider home remodeling loan options

If you plan on borrowing money to fund your home renovations, there are a number of loans out there to help with just that.

  • Refinancing. Depending on your current interest rate, you might be able to refinance your mortgage at a lower rate and/or for a longer loan term, which could lower your monthly payments and help you save up for your renovations.
  • Cash-out refinance. If you have enough equity, you could also consider a cash-out refinance, which means refinancing your existing loan for an amount that’s higher than what you owe. Going this route, you pay off your original mortgage and have cash left over. Use a refinance calculator to see if refinancing makes sense for you.
  • HELOC. If refinancing sounds like too big of a leap, a home equity line of credit (HELOC) might work better. A HELOC works a lot like a credit card in the sense that it has a set limit that you can borrow against.
  • Home equity loan. Although it sounds similar to a HELOC, a home equity loan is a bit different. This loan requires you to take out all the cash at one time. They’re often referred to as “second mortgages” because homeowners get them in addition to their first mortgage.

Refinancing, getting a HELOC or taking out a home equity loan are all big decisions, and it can be tough to know which one makes the most sense for you. As with any new loan, consult with a lender to see which option is best for your situation.

3. Get home renovation quotes from contractors

Some contractors will give you an estimate based on what they think you want done, and work completed under these circumstances is almost guaranteed to cost more. You have to be very specific about what you want done, and spell it out in the contract — right down to the materials you’d like used.

Make sure that contractors’ estimates include the full scope of your project. Photo from Shutterstock.

Get quotes from several contractors, tossing out the bid from the one who gives you the lowest estimate. Going with this choice could be asking for problems, as low-priced contractors are known to cut corners — at your expense.

4. Stick to the home remodeling plan

As the renovation moves along, you might be tempted to add on another “small” project or incorporate the newest design trend at the last minute. But know that every time you change your mind, there’s a change order, and even minor changes can be costly. Strive to stick to the original agreement, if possible.

Even minor changes to your remodeling project’s scope can add significant costs. Photo from Offset.

5. Account for hidden home renovation costs

Your home may look perfect on the outside, but there could be issues lurking beneath the surface. In fact, hidden imperfections are one of the reasons renovation projects end up costing more than you anticipated.

Rather than scramble to come up with extra money after the fact, give yourself a cushion upfront. Factor in 10 to 20 percent (or more) of your contracted budget for unforeseen expenses, as they can — and do — occur. In fact, it’s rare that any project goes completely smoothly.

 

Posted by Vera Gibbons on Zillow

 

Advertisements

4 Rock-Solid Reasons to Remodel Your Home in 2018

iStock; realtor.com

As 2018 dawns, there’s no question the real estate market is, well, a little crazy. Home values are surging, money is relatively cheap, and inventory is tighter than tight.

That’s all downright welcome news for owners who’ve been considering remodeling.

“Remodeling remains a very attractive option to increase your home’s value,” says Javier Vivas, director of economic research for realtor.com®. And that can be a smart move whether you’re prepping your place for sale, or giving it a refresh for the long haul.

“The big variable here is location,” says Vivas. “If you’re happy with your neighborhood and your place has some value, there’s an advantage over trying to move—because there may not be somewhere else for you to move to in your price range, or you may have to make a bigger cost jump than you would if you were simply remodeling.”

Still wondering whether to grab a sledgehammer and get swinging? Here’s the thing: The longer you wait, the more expensive renovating or remodeling gets. If you’ve been on the fence, this may be the year to get off it. Better yet, rebuild it! Here’s why you should get moving now.

1. You (likely) have more cash

Consumer confidence is high, unemployment is low, and incomes are growing—which means you likely have more money in your pocket. Plus, if you’re a homeowner, chances are good that your home equity has increased along with skyrocketing home prices over the past few years.

So when it comes to spending cash on all those get-to-it-later home projects, you’re probably in good standing.

In fact, the remodeling market is expected to grow 7% this year, saysRobert Dietz, chief economist with the National Association of Home Builders.

“This market should be sustained by the fact that homeowners are remaining in their homes longer,” Dietz says.

2. Interest rates for building loans are low

Interest rates for home equity lines of credit—which offer a flexible way of obtaining funds to pay for things such as home improvements—are still historically low. And even though interest paid on HELOCs is no longer deductible under the new tax reform legislation, experts say the building loans remain a good deal.

“Interest rates are still quite friendly but will likely go up this year—and lenders are competing for loan business,” says Tom Miller, president of the National Association of the Remodeling Industry, who also owns a remodeling company in the Pacific Northwest.

Simply put: Take advantage of those low rates now before more increases hit.

3. It could be cheaper than buying a new home

If you live in a high-cost metro area and already have a foothold in the real estate market, remodeling your existing place could be cheaper than buying a new one. Maybe a lot cheaper (unless, of course, you were planning on downsizing).

There are a lot of factors to consider, however: How much equity you have in your place, what your current mortgage rate is, and whether major renovations are even feasible. But experts agree that, in many cases, the current seller’s market makes renovating a more palatable option than buying.

“We think remodeling will be a major trend in 2018, because we’ve seen prices grow so much that a lot of potential buyers are being priced out of their own markets,” Vivas says. “And that’s where you see a turn toward giving up on trading up and buying again and considering other options like renovating.”

This is especially true in expensive markets such as New York and California. Plus, these high-cost areas are expected to feel the heaviest burden of the tax reform provisions that limit mortgage interest deductions and eliminate the deduction for state and local property taxes.

“Some of the tax benefits linked with purchasing will be sidelined or diluted,” Dietz says.

4. Costs will go up the longer you wait

The construction industry is facing a major shortage of skilled laborers and rising materials costs, and there’s little indication this trend will reverse anytime in the future. This higher demand translates into higher pay scales for available, qualified workers—and those costs ultimately get passed along to you, the consumer. The situation is expected to get worse over time.

“Labor costs will continue to escalate as remodelers pay up to get and keep construction trades on the jobs,” says Fred Ulreich, chief executive officer of the NARI.

Furthermore, the multibillion-dollar cleanups of Hurricanes Harvey and Irma drove materials prices even higher—and the effects are expected to last into 2018. The NARI predicts materials costs will rise about 5% this year, especially for supplies such as lumber, drywall, and concrete.

What’s more? Labor shortages will not be resolved overnight, Miller says. For the would-be remodeler, that means your costs will likely go up the longer you wait.

“There are no signs that remodeling demand or costs will taper off over the next several years, but will continue to rise,” Miller says. “Holding off on a project—if you can find a reputable remodeler available now— will only cost you more next year.”

 

Posted by Holly Amaya on realtor.com

7 Perfect Kitchen Upgrades for a New Look Without Remodeling

Take your kitchen forward without setting yourself back too much.

Kitchen renovations require time and money, taking several months to complete and costing tens of thousands of dollars. If you don’t have the financial resources for a full-on renovation, there are a variety of ways you can give your kitchen a new look for a lot less. From refacing cabinets to replacing lighting, a few cosmetic tweaks can give you the kitchen you’ve always wanted.

Cabinets

More and more homeowners are turning to kitchen refacing as an easy way to update their cabinets. Refacing involves replacing the doors, drawers and hardware and covering the entire exterior of the cabinets in a brand-new veneer. If you’re happy with the layout and function of your kitchen, but aren’t necessary keen on the aesthetic feel, consider cabinet refacing.

“It’s for people who have kitchens from the ’70s and ’80s that have solid wood cabinets,” says interior designer Anna León, who has a background in kitchen refacing with Home Depot. “They can take off the original doors and put on modern doors.”

The cost, which starts at around $6,000, depends on the size of the kitchen and the materials used. With an array of options available — such as woodgrains, painted wood and pressure-fused laminate doors like Thermofoil — you can transform a kitchen’s facade easily. Contemporary Thermofoil doors also come in a variety of fun looks, including glossy, matte and woodgrain.

As opposed to a full-on kitchen gut and renovation taking several months to complete, cabinet resurfacing typically takes three to five days.

Painting cabinets is a more affordable route to take than refacing, costing around $3,000 to $5,000 for a professional to do the job, according to León.

Or, you can always DIY, which is the most affordable option, but is laborious and takes a great deal of time.

“Painting cabinets is great, but it’s all about the prep work,” says Richmond, VA-based interior decorator Lesley Glotzl. “You have to prep and paint them perfectly or they’re going to chip or peel. You can’t cut any corners.”

Photo from Zillow listing.

Backsplash

Creating a new backsplash is an easy way to freshen up your kitchen. Be sure to choose a timeless material that will complement your cabinetry, and avoid mixing styles and periods. For instance, if you have ’70s-era cabinetry, you won’t want to pair that with something trendy like subway tile.

If you’re a confident DIYer, tile your backsplash. Or for $20, you can paint it in a bold high-gloss paint that you can easily wipe down after cooking.

In Glotzl’s home, she installed a beadboard backsplash and painted it in a high-gloss blue.

Shiplap is an affordable and durable option as well, and it’s not difficult to DIY. Glotzl also recommends using vinyl wallpapers from companies like Osborne & Little as backsplash, as they come in an array of fun textures, colors and patterns.

Photo from Zillow listing.

Countertops

For countertops, head to your local stone yard and choose a granite at the lower end of the price range. Formica — a more affordable option than natural stone — has a lot of cool countertop options in patterns like Greek key or textures like barn wood or grasscloth.

If you’re short on counter space and aren’t looking to add more cabinetry, consider buying a premade island or bar-height table that you can float in the center of your kitchen.

Or, if you have a more contemporary kitchen, consider purchasing a stainless-steel food prep table from a restaurant supply company. Just make sure you have at least 36 inches between the cabinets and island on all sides for easy traffic flow, advises Glotzl.

Photo from Zillow listing.

Shelving

If your cabinets don’t have lip molding on the interior, remove cabinet doors to create open shelving and show off your beautiful serving dishes.

Or, if you have an empty wall, create your own shelving system with floating shelves from a retailer such as Pottery Barn or IKEA. Just be sure you install brackets underneath the shelves if you plan on loading them up with dishes and cooking wares. Glotzl recommends Van Dyke’s Restorers for shelving support.

Photo from Zillow listing.

Lighting

Lighting can dramatically change the look and feel of any room. Tear out harsh fluorescent lighting and replace it with can lights.

Make food prep easier by having an electrician install under-cabinet halogen fixtures or ambient Light Tape. Over the kitchen sink is the perfect place for a statement piece like a sculptural pendant light.

Photo from Zillow listing.

Pulls and knobs

If you’re going the cabinet-refacing route, you’ll have plenty of new pulls and knobs to ponder. You can find them at online retailers or local shops.

If you’re painting your cabinets — or even if you’re not — new pulls and knobs can go a long way toward creating a new look in your kitchen. This simple solution is one that works particularly well for renters.

Photo courtesy of Shutterstock.

Appliances and plumbing

Dated appliances paired with updated cabinetry will make your kitchen feel incomplete. New stainless-steel appliances are the finishing touch. For less than $500, you can get a new stainless-steel electric range; for less than $700, a brand-new top-freezer refrigerator.

“Compared to everything else you have to do, it ends up feeling like pocket change,” says León.

You can easily update your faucet for under $100 (although, of course, you could spend a lot more). And a new farmhouse sink could be yours for less than $400.

Photo from Zillow listing.

 

Posted by Marissa Hermanson on Zillow

Top 4 Home Renovations for Maximum ROI [INFOGRAPHIC]

Some Highlights:

  • Whether you are selling your home, just purchased your first home, or are a homeowner planning to stay put for a while, there is value in knowing which home improvement projects will net you the most “Return On Investment” (ROI).
  • While big projects like adding a bathroom or a complete remodel of a kitchen are popular ways to increase a home’s value, something as simple as updating landscaping and curb appeal can have a quick impact on a home’s value.

 

Posted by The KCM Crew

Wondering how much your home is worth? Click HERE to find out!

5 Signs You Need to Upgrade Your Kitchen

Brighten it, expand it, organize it — whatever it needs, your kitchen is an update away from ideal.

Your kitchen is likely the most loved room in your home — and the wear and tear proves it. It’s the hangout for hungry teenagers, the conversation station during the holidays and the catch-up room after a busy workday.

A functional and appealing kitchen is important not only for your family but for your guests, too. After all, a delicious meal is only so appealing in a messy and cluttered kitchen.

Here are five signs that your kitchen may need an upgrade.

1. Outdated appliances

Perhaps they were there when you moved in, or maybe they came with you decades ago when you bought the home. Either way, outdated appliances are usually less attractive and drain more energy than newer models on the market.

Consider their safety, too. If you have to press a secret combination of buttons and chant a spell to light your range, it’s time to upgrade to newer, safer appliances.

When you do upgrade, consult a professional electrician to make sure everything is wired properly and up to code.

2. Damage and wear

Nobody expects your kitchen to stay in like-new condition forever, but damage beyond normal wear and tear needs addressing.

Water damage from a leaking fridge or dishwasher can cause mold on and underneath the flooring or peeling on the countertops, floors and walls, depending on the materials.

Cracked, peeling or chipped countertops and floors are prime spots for dangerous bacteria to reside — and hide from cleaning supplies. Even clean counters and floors with stains can cause your guests to think twice when they’re invited over a second time.

Upgrading to newer counters made from a durable material like granite is a good investment that can last practically a lifetime.

3. Not enough counter space

If your counters are covered with appliances, utensils and food, you need an upgrade. Ideally, your counters should always be clutter-free, and everything should have an easily accessible place.

Adding more counter space doesn’t have to mean tearing down walls and rehauling the layout. If your floor plan allows, installing an island is a great and relatively simple way to add counter space.

If it’s not the space but the clutter that’s the problem, larger cabinets or deeper drawers will increase storage so you can reclaim your counters.

4. You can’t find anything

Do you look forward to cooking or dread the time commitment? How much time is actually spent on food prep versus searching for the right utensils, appliances and dishware?

A disorganized kitchen makes it difficult to find anything, which can cause anxiety over cooking and render your kitchen useless. A fresh design and organization strategy is a worthy investment to get you eating in your own home again and enjoying the cooking process.

5. Your house won’t sell

Saving for your new home is often the priority when moving. But upgrading your current kitchen before you go is an investment that may very well pay for itself.

Home shoppers often gravitate first toward the kitchen. So, if you’ve been having trouble selling your home and the kitchen’s outdated — that could be the reason.

Buyers are usually more interested in move-in ready homes that require little or no remodeling. A more appealing, upgraded kitchen can be a motivating factor for buyers, hopefully resulting in less time on the market and a better selling price.

Make the necessary upgrades when the time comes, and your kitchen will reclaim its rightful place as the heart of the home.

 

Posted by Luke Caldwell on Zillow

9 Signs It’s Time to Update Your Bathroom

If a bad layout, poor lighting and leaky fixtures are getting in the way, it might be time for some changes.

A bathroom should be a place of comfort — the optimal environment for a relaxing soak or getting ready efficiently during a harried morning.

“You’re going to spend time in there every day,” says Sarah Hurd, part of the mother-daughter team behind Short Story Renovations, a Baltimore-area design, rehab and staging company. “You should not hate your bathroom.”

If a bad layout, poor lighting and leaky fixtures are getting in the way, it might be time for some changes.

Here are nine signs that your bathroom could use a little work.

1. Not photogenic

“It’s weird how you can see in a picture what you can’t see anymore with your own eyes,” says Angela Hurd of Short Story Renovations.

The fix: She and her daughter, Sarah, recommend that clients take a photograph of their bathroom to get a better sense of what they might not otherwise notice. People can become blind to the discord — from a mismatched color palette to accumulated junk on the vanity counter, she says.

2. Outdated colors

Funky hues can be one of the most noticeable signs that a bathroom is out of date.

The fix: White, gray and black palettes will lend an element of ageless beauty to any space, says Michael Merschat, an architect with high-end residential design-build firm Wentworth Inc. of Chevy Chase, MD.

People are coming back to “that white, timeless look, be it a very modern-style white or something with a little more traditional flare,” he says.

 

Crisp, neutral palettes can lend calm sophistication to any bathroom. Photo from Zillow listing.

3. Smells like a bathroom

“With some bathrooms, you walk in and they just have an old bathroom smell,” Sarah Hurd notes. It’s another indication that it’s time for a renovation.

The fix: Replacing a toilet’s wax seal, fixing a persistent, mold-causing sink leak, or adding better ventilation to a windowless bathroom can all be sure fixes for a fresher-smelling experience.

4. Bad layout

Awkward bathroom layout is another indication that it’s time for an update. Odd arrangements, such as a toilet directly next to the bathtub, are typical in bungalows and houses built in the 1920s, ’30s and ’40s, when plumbing was a new phenomenon.

The fix: Installing a separate water closet can be a winning move, Merschat says. “It gives a nice bit of refinement to the room when the toilet isn’t sitting out in the middle of the space.”

An outside-the-box arrangement can refine an otherwise predictable space. Photo from Zillow listing.

5. Leaks

When brown water stains appear on the ceiling below the bathroom, it’s definitely time to make repairs and update.

The fix: Take the opportunity to put in modern fixtures that conserve water and speak to your style, Merschat advises.

6. Poor lighting

“If you’re either blinded by the lights that are overhead, or it’s so dim you can barely see yourself in the mirror, that’s a problem,” says Sarah Hurd.

The fix: Better light fixtures and brighter light bulbs may be the first step on your path to a bathroom redo.

New light fixtures easily brighten and modernize the space. Photo from Zillow listing.

7. Stylistic relics

If you have wallpaper or popcorn ceilings still hanging around from decades past, your bathroom is due for an update.

The fix: Wallpaper is making a comeback, so think about using it in a new way. “We’ve actually redone powder rooms where we’ve put wallpaper on the ceiling to give it a different pop,” Merschat says.

8. Low on storage

Can’t store all the things you need in the bathroom? This calls for action.

The fix: Install a larger vanity, or add shelves above the toilet. You could even knock out a wall and steal a little space from another room to create a linen closet.

Install a new vanity with broadened storage options, like open shelving. Photo from Zillow listing.

9. Time to sell

If you’re not interested in fixing up your bathroom for yourself, do it for your home’s next tenants.

The fix: A fancy new washroom can add just the right panache to spur potential buyers to action. “Redoing a bathroom that’s just an eyesore within the house might make a huge difference,” Merschat says.

If you’re ready to renovate, start thinking about the look you want for your new bathroom. At Short Story Renovations, the Hurds use Pinterest to share ideas with their clients.

“[We] start a board that all of us can put stuff on,” Angela Hurd explains. “That way [our clients aren’t] in the dark about what we’re trying to do.” This practice helps everyone involved get a feel for one look and stick with it.

 

Posted by Becca Milfeld on Zillow

 

10 Ways to Make a Small Bathroom Look Bigger

Can’t knock down walls? No problem! Work a little design magic to make even the tiniest bathroom feel spacious.

Small bathroom spaces aren’t found just in apartments and condos — they’re in our guest bathrooms and powder rooms, too. Since no one likes feeling crowded, here are a few tips for making any small bathroom seem bigger — no wall demolition required.

Brighten the room

Bring in as much light as possible. Light, bright rooms always feel more spacious than dark and drab ones.

  • Wall color. Paint the walls and ceiling the same light color to make the bathroom feel double its size. Anytime an area of the room is a different color, it chops the room into different compartments, making it seem smaller.
  • Windows. If you have a window, use sheer window coverings to maximize the natural light.
  • Lighting. Install additional flush-mount wall or ceiling light fixtures to increase the light in the room.

Add mirrors

Install larger — and more — mirrors than you typically would in a bathroom. The reflected light will open your small space into one that feels more spacious.

Photo from Zillow listing.

Install a sliding door

Swinging doors can take up almost half the room, depending on how small the space is. A sliding barn door or a wall-pocket door won’t encroach on your bathroom’s already limited real estate.

Photo from Zillow listing.

Think pedestal sink

The added bulk of a full vanity takes up valuable space, so try a pedestal sink instead. You may not have a place for soaps or towels on the vanity, but there are plenty of wall-mounted solutions perfect for bathroom accessories.

Photo from Zillow listing.

Streamline storage

Keep all storage as flush with the walls as possible, because anything that sticks out will chop up the space and close it in. Install recessed shelving and medicine cabinets instead.

Choose light-colored flooring

Even if your walls and ceiling are light and bright, a dark floor will negate their effect and close the space in. Keep the flooring light to create a space with a bright and open flow.

Photo from Zillow listing.

Eliminate clutter

Nothing crowds a space faster than clutter. A good rule of thumb: If you don’t need it there, store it elsewhere. Pare what you keep in the bathroom down to the bare necessities.

Hide the bathmat

Having a bathmat on the floor all the time can make your bathroom feel smaller. Put your bathmats away when you’re not using them to expose the flooring and make the space appear larger.

Raise the shower curtain bar

Raising your shower curtain bar all the way to the ceiling draws your eyes up and makes the ceiling seem taller, creating the illusion of a larger space.

Photo from Zillow listing.

The same goes for any window treatments. Raising sheer curtain panels to the ceiling also creates the illusion of a larger window, making the small bathroom seem larger.

Go frameless, clear, and cohesive in the shower

Clear glass shower doors make the room appear larger, while frosted glass breaks up the space and makes it seem smaller than it already is. The same goes for a frame around the glass. A frame can make the area seem choppy rather than smooth and open.

Additionally, install the same shower tile from floor to ceiling. The seamless look from top to bottom adds cohesion and openness.

Just a few changes to your small bathroom can make dramatic differences in how open it feels. Once you’ve tried these tips and tricks in the bathroom, apply them throughout your home! It’s all about creating the illusion of space.

Posted by Christina El Moussa on Zillow