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Understanding the Price Breakdown of Your Home


By Mikkie Mills

When it comes to renovating a modern home, many people come up with several different reasons as to why they can't do it at the moment. Some of those reasons stem from the fact that they falsely believe that the idea of renovating a house is particularly expensive and complicated. Meanwhile some people are just uncertain about the areas of the house that they can renovate to increase its overall appeal and value. In this article we'll take a look at some of the reasons why you should renovate your house right now, how you can finance your home renovation project, as well as some of the areas you can focus on.

In this segment of the article, let's take a look at some of the reasons why you should jump right into renovating your home right now...

Safety Issues

In order for you to ensure that your home remains safe for children, pets and visitors you need to fix any issues that you may have. Problems such as roof leaks and electrical problems may seem small at first glance, but they can lead to injury as well as to damage your property.

For instance, if your roof is leaking, this may represent an opportunity for you to install a brand new roof, which is more visually appealing than your current structure. Roofing leaks in particular can lead to the development of black mold commonly referred to as Stachybotrys chartarum. This can kind of mold can cause respiratory problems such as coughing, concentration issues, aggravate respiratory ailments such as asthma and cause migraines. On the other hand, electrical problems can actually lead to a fire. As such, if you have a safety issue, there's no reason why you should delay when it comes to conducting your project.

You may also need to know how earthquakes affect home ownership.

Increases the Value of Your Home

If you plan on selling your home eventually, it would be in your best interest to renovate some portions of your home or all of it, so that you can get as much as possible when you put in on the market. Some small improvements can lead to a massive increase in value such as spicing up the main living space, upgrading the bathroom and kitchen as well as to replace the doors.

Enhance Your Level of Enjoyment and Comfort

While it may be true that there are several reasons why you should renovate your home, one of the primary reasons you should is for your own comfort and enjoyment. Your home is your kingdom and if you don't plan on selling it, this will be your place of residence for the rest of your life. As such, shouldn't you ensure that you maximize your comfort not only for yourself, but your children and other loved ones as well?

Increase Efficiency and Reduce Utility Bills

Renovation ideas such as a new heat pump, a more modern furnace, thermal windows and added insulation in the walls of your home, are all prime examples of improvement ideas that can increase the value of your home as well as to decrease energy related expenses. While these kinds of improvements may seem overly expensive at first glance, they will pay for themselves as you notice a gradual decline in your utility expenses.

Prepare Your Property to Be Placed on The Market

One of the primary reasons why people renovate their homes is because they want to sell it. As such, replacing the colors of your home's interior with neutral colors, fixing any functional or cosmetic issues can help to demonstrate to potential buyers that the homeowner was meticulous when it came to keeping their property in tip top shape and will help to capture their trust that they are purchasing from a homeowner who did their best to keep the house in pristine condition.

Now if you're thinking, "Great! Those are some great reasons why I should renovate my home, but I simply do not have the budget to do it right now," stop right there. It goes without saying that some home improvement projects can be expensive. However, with the right guidance not only can you find cost effective ways to renovate your home, there are several avenues you can take to secure financing. In this segment of the article we'll take a look at some of the ways you can do just that.

Government Loans

There are several government loans available that were created for the sole purpose of helping homeowners. Two of which include:

  • VA Finance Loan - This loan is only eligible to veterans. Individuals who qualify for this type of loan can get as much as the total value of their home.
  • FHA Title 1: With this type of loan, even if you have no equity, you can take out as much as $25,000 for your renovation project. However, it's worth noting that this loan is legally required to only go towards renovation projects that aim to enhance the livability of said home.

Credit Cards

This may be an ideal route to take when it comes to conducting minor renovation projects. Some of the kinds of projects this type of funding would be ideal for include, installing a brand new closet system, upgrading/replacing the faucets in your kitchen and bathroom, steam cleaning the entire carpeting of your home to gets its natural color back or even to replace your flooring system. Ideally you'll want to use a low interest card which offers cash back so that you can actually regain some of the money you have spent.

Personal Loan

If you have good credit and a track record of paying your bills on time, this is ideal for moderately sized projects. When it comes to doing a complete makeover of the kitchen, bathroom or living area as well as to hire an expert to conduct the job, this can help to cover the expenses associated with the entire project.

Home Equity Loan

This type of loan is referred to as a second mortgage. With this type of loan, individuals are able to receive a lump sum as to which they can pay back over the agreed upon number of years. Monthly payments for this type of loan does not increase, but are actually fixed. As such, by taking the loan you need not worry about the rates increasing throughout the period of which you gradually pay it back.

Buying a home can be overwhelming if you don’t know where to start. This is one of the biggest purchases of your life, so you want to feel confident. That’s why choosing the right mortgage lender is so important.

Once you've secured financing and formulate a main goal for your renovation project, the next question you may ask yourself is "Where do I start?" Well, in this segment we'll take a look at several ideas to consider...

Build A Bar

If you have a den or a basement setup, you may want to consider the idea of installing a bar which has been outfitted with a bar rail moulding setup. By adding this type of wooden bar arm rest, it can help to provide a professional polish to your renovation project. The purpose of this type of armrest is to support the arms of your guests when they are standing or seated and leaning on the table of the bar itself.

Decorate the Entrance

Potted plants can help to procure an aura of peace of tranquility when placed in any room of your home. As such, what better way to demonstrate that aura of peace and tranquility than by placing some around the entrance of your doorway.

Upgrade Your Fireplace

Most homes feature an unpainted brick fireplace, if this applies to you, consider the idea of giving it an updated look by adding some paint. This may seem simple, but a home with a fireplace which features colors that blend in with the overall theme of the house stands out more than the typical red brick fireplace that the whole world is used to seeing.

Declutter the Front Entrance

As mentioned before, there are cost effective things you can do throughout a home renovation project that can have a big impact on your home's likability and overall appeal. One of the simplest things you can do is to declutter the entryway. By doing this, visitors and loved ones will have a good first impression of your home. Some of the things you can do is to use furniture to serve two purposes such as being a shoe caddy and a bench. You can install cubbies, lockers and coat racks which will help to declutter your entryway and make it more accessible.

Install a Smart Thermostat

When's the last time you went into someone's house and seen a smart thermostat? If you really want to make your home standout you can be that one person who has a thermostat that uses WiFi, sensors and sophisticated algorithms to regulate temperature. Not only will this lead to lower utility expenses and is more visually appealing than a traditional digital thermostat, it will help to make your home stand out indefinitely in the minds of potential buyers.

Illuminate Your Decking and Stairs

Another cost effective project you can conduct is to illuminate your decking and stairs. By outfitting them with low-voltage lighting, it can help to provide the exterior of your home with some style as well as efficiency. Lighting in itself adds a higher level of safety when it comes to moving around outside at night as well as to showcase your home's beauty during the night.

About Mikkie Mills: “I’m a Chicago native who loves to share her expertise about personal development and growth. When I’m not writing, I’m chasing the little ones around or rock climbing at the local climbing gym.” More articles by Mikkie.

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