Did you know that you can include home renovations in your mortgage? There are several mortgage options that allow for either certain types of home improvements or up to certain amounts for improvements of your choice. These options automatically broaden the spectrum of houses that you may be willing to consider—you can now look at potential homes through the eyes of what they could be versus what they are now. Here are some of the top renovations or repairs that will bring you the most return for your investment.
You can replace the fixtures, tile surround, and floor in a bathroom. At resale, you can expect to land up to 102 percent of your investment. Now, you can justify replacing that dated sink, toilet, and tub, and updating it to the 21st century.
Who doesn’t enjoy a beautiful yard and garden? It turns out that redoing your landscaping can be 100 percent recovered in a resale. According to the American Nursery Landscape Association, the average landscaping redesign is around $5,000 and adds about the same value to your home. So that dense shrubbery that shrouds the front of the house can be replaced with more strategic plants of varying heights and the overgrown backyard can be improved with a charming little walkway and brick fire pit.
Isn’t food frequently a centerpiece of social gatherings? At a recovery rate of 98.5 percent, a minor kitchen remodel falls close behind bathrooms and landscaping as one of the most lucrative renovation projects. Generally, a kitchen costs around $15,000 for refacing cabinetry and replacing countertops, sinks, and floors. Expect to cook in style at your new home and then sell it at a higher price because of your fabulous kitchen.
If the siding on the home you’re considering is faded, cracked, or even missing in places, have no fear. A siding replacement will give you back about 95.5 percent of your original investment. Installing vinyl siding on a home costs an average of $7,240. When you sell, you should be able to recover almost $6,900 of that expense. Upscale fiber-cement siding does even better with a return rate of 103.6 percent. Updated front entries also add to a home’s value. So, go ahead, and add curb appeal to your wish list of possible renovations.
Believe it or not, that awkward peaked space at the top of the house can be converted into livable quarters—and it apparently increases the home’s value and appeal too. Generally, an attic conversion will cost you almost $40,000 and will bring you about $37,400 in a resale, giving it an average recoup rate of 93.5 percent. It does depend where you live though. In California, the recovery rate actually goes up to 105 percent versus the Midwest where it’s only 82 percent.
Ask your mortgage lender which renovations you can include on your mortgage loan. Each of the programs that you might qualify for have different requirements. Perhaps you’ll be able to buy that fabulous, but slightly neglected, Victorian house on the corner or that cute little bungalow that has so much potential.