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Could your home use a fresh coat of paint, new shutters, or perhaps a new kitchen? When you're deciding whether an improvement is worth the money, one thing to consider is whether you'll ever be able to recoup your costs. Many improvements are nice and will increase your enjoyment of your home - but which ones will increase your resale value?
Will your remodel be a good investment?
Be aware that not all home improvements are equal investments. It's smart to avoid fancy projects that buyers would rather do themselves, and stick to basic improvements. In a kitchen, this means reflooring, repainting, and new cabinetry - not state-of-the-art appliances or the latest fashion colors.
Improvements that tend to return their value at the time of sale include those that:
- Add visible curb appeal (such as a fresh paint job)
- Add more functional space (such as an attic conversion or an extra bathroom)
Are you financially prepared to remodel?
Before applying for a loan, think through your financial needs:
- How much will the improvement(s) cost? Obtain a figure - either as a fixed estimate or as a price range - from a reputable licensed contractor. If your project will be ongoing, or if it is difficult to obtain a firm total estimate, you may want the flexibility of a line of credit.
- How much can you afford to pay for home improvement financing on top of your monthly mortgage payment? You want to be able to live with the terms you establish.
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