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Regarding Covid-19

To our valued family of customers,

Pro Remodeling has chosen to remain open during our normal business hours during the current COVID-19 pandemic in order to meet the needs of our customers.  Pro Remodeling is following the Executive Order issued by Governor Doug Ducey on March 23, 2020 (EO-2020-12), listing essential services that should remain open: Critical trades, including contractors, plumbers, electricians, etc.

Rest assured all of our employees are observing the protocols of safety recommended by medical experts: wash hands frequently, avoid crowds, limit close contact with others, etc.  We will be diligent in following the measures set forth to ensure your safety as well as our own.

home renovation checklist

A Concise Home Renovation Checklist

For many homeowners wishing to turn their house into their dream home, the first project involves home renovations. Our concise home renovation checklist helps you feel more confident starting and finishing every renovation project. With a proper plan of action and the right remodeling contractor in Tucson, AZ, your home remodeling plans become easier to manage, save money, and reduce the headaches often associated with the renovation process.

Why DIY Renovations Aren’t the Best Option

Unless you already have various tools, supplies, and knowledge from years of professional training and hands-on experience, you most likely won’t benefit from DIY renovations. Homeowners who attempt home renovations themselves often find that they:

  • Now have tools and equipment they’ll never use again
  • Overestimated or underestimated the number of necessary supplies
  • Don’t have the time or skill needed to perform the renovation properly

1. Build a Plan

A thorough plan helps you decide specific aspects of your home renovation that you can discuss with your chosen contractor. Your renovation plan should include:

Renovation Ideas

Whether you want a fresh coat of paint in the bedroom or need multiple kitchen renovations, write down the work you want to be performed in each remodeling space.

Budget

A realistic budget takes into account materials, equipment, time, and skill level.

Priority Timeline

Which parts of your home renovation should reach completion first?

2. Find the Best Contractors

While searching for the best contractors, look for ones who specialize in your planned renovations. Gather a list of names, then begin an in-depth search for their website, social media, and online reviews. Once you start calling contractors, they should have no problem providing information to help you make your final decisions. Request the following items to verify their business:

  • References
  • Proof of legal documentation
  • Proof of insurance

After you choose which contractor you want to work with, go over your home renovation checklist with them and ensure that communication remains clear throughout the process. Your contractor should discuss potential subcontractors, building permits, payment details, and more, plus provide you with an estimated completion date.

3. Prepare for Your Renovation

Depending on the size of your renovation project, you can relocate furniture and goods to a different room in your house or rent a storage unit until your project ends. Make sure you move everything out of the remodeling space to make it easier for your contractor to work without risking the safety of your possessions.

4. Final Inspection

After the contractor finishes your home renovation, take time to inspect the work performed. Ensure that your contractor addresses every detail and that everything functions correctly. Notify your contractor of any problems so they can fix them, and don’t make final payments until the project meets your satisfaction.

Are You Ready for a Home Renovation Project?

Does your kitchen need an upgrade? Know the pros and cons of having an open-plan kitchen. Whatever the project, preparing for a home renovation shouldn’t fill you with dread. With this concise home renovation checklist, you can plan to remodel your home with minimum stress.

If you’re looking for the best home remodelers in Tucson, AZ, call Pro Remodeling at 520-745-9769 today.

Building an addition

home renovation - addition construction

Not many realize this, but building house additions is one of the best investments you can make in your home. Not only does it increase the market value of your home, but it also adds to the usable square footage. Be it a second story or a room addition; it will pay back its worth sooner or later.

However, home addition is an expensive home improvement and can cost you an arm and a leg. It is also complicated both in terms of architecture and red tapes. In addition, the enormous nature of the project meant that homeowners preferred professionals.

From building codes and local ordinances and inspections, there is a lot to consider. This article tackles all of the above, including the cost involved. We also added a few inspirations for your home addition.

Should I add on to my house?

A home addition is the most expensive home improvement you could undertake in your home. However, is it worth adding on to your home considering your finances? The answer to that question is not that simple. It depends on a few factors such as location, purpose, and resale value, to name a few.

If you plan to stay in your home for the near future, a home addition can help make it yours. You can enjoy the new additions for years to come. However, if you plan to sell the property, you’ll need to think about its value. Ensure that the add-on is cost-efficient. And that the cost of your home increases with addition.

Which is Cheaper: Build-out or Build-up?

It is easier to build out than build up when it comes to adding on to your existing home. The most simple reason, when building up, you have to remove your roof and rebuild it. It requires massive architectural and structural adjustments, which can be expensive. Above all, you will have to vacate the house and put all your personal belongings in storage.

Having said that, building a home addition is also disruptive. You will have to unearth and lay new foundations. As a result, you will also lose property space. But considering both, building out is cheaper and also versatile.

Which is Cheaper: Build a House or a Home Addition?

Generally, home addition is cheaper than building a new house, even if it equals the space. The closing costs(selling and buying) and registration alone would eat up any profit you may have.

If you are thinking along the same line, you are not alone. According to Zillow, 76% of Americans would instead build a new addition and not put down the downpayment for a new home. So most times, it makes sense to add on instead of building a new home.

Adding an Addition to Your House: What You Need to Know

Building a new addition can be challenging. Not only do you have to consider the space, but you also consider the impact on the sale value. Here are a few more things you’ll have to keep in mind.

  • What is the building code?
  • Can I get this done yourself?
  • Should I build out or build up?
  • How much does the addition cost?

If the answers to those questions convinced you to add-on here are a few key factors you’ll have to look at:

Why are You Adding an Addition?

You need the extra space or new rooms but how are you planning to use it? How you are planning to design the addition plays an integral part in resale value. Therefore, you plan the space well and have it designed as per specifications.

House additions aren’t that simple. There is a red tape to navigate at every turn; building permits, restrictions, and more. For example, there is a limit on the number of stories you can build. In addition, you cannot build within 10 ft of property lines. If you are in a historical district or coastal zone, the permits are more complex. Depending on the backlog, you may have to wait as long as six months before you start building.

Budget Your Addition

saving money for additional home construction

Building a new addition is quite expensive. It is often more cost-effective to add to the existing house than to build it. Additions can add significant value when planned and executed well. But you can’t count on the extension of the property increasing its value. Even if it adds value, it will not pay the entire cost. There are other expenses to consider like maintenance, property taxes, heating, and cooling.

Professional or DIY

The big question here is can you go at it yourself, or are you hiring a professional? Unless you are experienced in DIY, it is not advisable to take it on yourself. You may realize sooner or later that you have a bit more than you can chew. The other option is to hire a general contractor. The right contractor can build your addition and even increase the resale value. Make sure they’ve been insured and bonded to prevent problems with their insurance. You can save money by doing a portion of the work yourself.

What’s the Cost Per Square Foot?

Certain additions may cost more per square footage than the others. For example, home additions that require a new foundation will cost more than an attic renovation. The same goes for an addition that requires plumbing or electricity. And the expenses don’t stop with that. You may even need new HVAC equipment if yours is running at maximum capacity with a new addition.

You May Have to Live with Construction

Building a home addition is disruptive. It may take weeks, if not months, to complete, and you will have to live with the construction. Construction dust gets everywhere despite your best effort to cover your belongings. And you may not get a moment of peace with all the hammering and sawing.

Don’t Cut Corners

A well-executed home addition can fetch you more in market value. It is not where you skimp and cut corners. You can also prevent expensive mistakes and future construction work. Ensure that the contractor you hire uses high-quality materials. And that they acquire the appropriate licenses and permits.

12 Home Addition Ideas to Increase Your Square Footage

The first part of designing a home is to get inspiration. Adding rooms with characteristics may attract a buyer and also enhance the value of the home.

Here’s a selection of ideas for your next home improvement project.

#1 Add to Your Kitchen

Kitchens and bathrooms are two additions that you can trust to increase the value of your home. So much so that these are the two areas that prospective buyers ask to look first. Many households have a small kitchen. Even a minor remodel can bring about a great return on investment. If you have extra space at the back, you can add a bump out and create more space in your kitchen. Think about a breakfast nook or a pantry.

A kitchen addition costs anywhere from $60,000-46,000and cover 90% or more of its original cost. However, you are less likely to recover the cost of a significant kitchen remodel.

construction worker working on expanding bathroom

#2 Expand the Bathroom

A bathroom is vital for the value of your residence. An increase in square footage from a bathroom expansion is a significant investment. Next to a kitchen remodel, the bathroom has a good ROI of at least 62%. The cost of expanding your bathroom starts with $5,000 for an upgrade or expansion. It can go up to $35,000 for a bathroom addition. Try extending your master bathroom to include a bathtub or two sinks.

Even though bathroom additions are often costly, they add significant value to your property. A two-bathroom home is more appealing than a 1-bedroom property. However, the costs can add up if you look to put in a bathroom addition at the back of the house. You will have to pay more to run the pipe, electrical work, fixtures, and more.

#3 Garage Addition

If your current home has no garage, adding a garage could increase its value. A garage addition is an excellent option for those who like to increase the square footage. A freestanding garage is more expensive than the attached garage. However, it does offer fewer issues to construct. As with all additions, ensure that the garage addition blends into the architecture of the current home.

A garage addition can be challenging to install. But the convenience of the attached garage makes going to a garage from home easy. The cost of building a detached garage is anywhere between $9,000 to $12,000.

If you do not need an attached garage, consider turning it into a studio, home office, or craft room. It cannot be considered additional square footage if you as a garage. The cost to convert a garage into a room addition project is about $14,094, with an ROI of 80%.

#4 Build a Room Over the Garage

A bonus room over a garage is a fantastic solution to increase the home’s square footage. The cost of constructing a room over the garage is $35 per square foot, depending on what you are using the room for. When it’s done, you can rent it out or use it as a guest bedroom or apartment. Keep in mind that certain additions, including a new roof, type X fire-proof drywall, and vapor barrier, are more costly than other projects. A living space with amenities over a garage will cost you $18,000 to $20,000 in total.

#5 Laundry Room Upgrade

laundry room addition

Is your current laundry room cramped? A second-level laundry room is a much sought unique home addition. Moving your laundry room from a basement or first-floor room to an upstairs addition is often a good investment. And you also get more square footage which is always a good thing when reselling.

#6 Complete the Attic

The attic holds untapped potential. You can convert them to guest bedrooms, a gym, an art studio, or a home office. First, however, ensure that the half ceiling is at least 7-ft and also has a stairway. Once these requirements have been met you can take advantage of the extra square footage and transform it into a living space. The attic renovation can yield an ROI of 56%.

#7 Sunroom Addition

Love your front porch? Why not convert it into a sunroom? Sunrooms let in plenty of natural light and are an excellent way to bring some light. To be considered livable square footage, you need to add heating and make it accessible from within your house. You can also make the sunroom look like a second living room with comfortable seating and lamps. Sunrooms can be three-season, four-season, or solarium.

The three-season sunroom is not well-heated and is not used in the coldest months of the year. A four-season room, on the other hand, is used throughout the year since it is insulated. Solariums are generally made from glass. They can also serve as greenhouses for flowers that need direct sunlight.

The cost to build a sunroom addition ranges from $15,000-$22,000 with a 50% ROI.

#8 Consider a Bump-Out Addition

Cantilevered house bump-outs are small expansions (or micro-additions) to an existing room. A bump-out addition can range from 2 feet to 10-15 feet and add square footage.

Bump-outs can serve as a reading space in a living room or a walk-in closet. A bump-out in the bathroom can make more room for adding a bathtub. In the kitchen, you can add a bench and chairs for a dining room. Bump-outs do not involve roof or foundation work. Hence, the cost may be 15-30% less than a conventional addition. Therefore, they are more affordable options for house additions.

#9 Finish Your Basement

Completing your basement is a great way to add extra square footage to your room. It can serve as an extra bedroom, entertainment room, or even a small apartment. The average cost for constructing a basement is between $2,800 and $34,000, with an ROI of 60%. Ensure you have emergency windows or a backyard exit if you plan on building a basement bedroom.

#10 Mudroom Addition

Building a mudroom can serve as a good informal entryway to your home. They are an excellent spot for storing shoe/coat and bag bags. Mudrooms generally feature benches that hold drawers, built-in cabinets, and storage. Those benches and the utility sinks are a valuable and clean-up-quick way of cleaning. A small 4×7 room will cost about $4,000. Large rooms can be as much as $12,000.

building an addition - home office

#11 Home Office Addition

A home office might help you be productive since remote work has become the norm. A spare bedroom can make for a home office in a pinch. If not, building a room addition is a great option. You can also list it as a spare bedroom for selling to increase the real estate value. The cost, however, may increase dependent on the size of the room and the cost of any furnishings.

#12 Second Story Addition

A second-story expansion is a great way to add square footage (almost double). This addition bolsters your home’s surface area and increases resale value. You can use the extra space for a master bedroom and a bathroom or a spare bedroom. The options are endless. Ensure that your home’s structure and foundation can handle a second-story addition.

The cost to build a second story addition could range from $60,000 to $600,000. Most second-floor homes involve the addition of another room rather than a single level. The addition of an outdoor living room costs about $25 per square foot.

How Much Does a home addition cost?

A home addition can cost anywhere from $80 to $200 per square foot. The average cost of building a new room measuring 20×20 feet is between $32,000 – $80,000. The cost can be higher if you are adding more luxury features or customizations. Keep in mind that this is a ballpark figure. How much money the room addition costs are bound to change depending on the home addition and how much space you need.

Average Cost of a Studio or Apartment Extension

The cost of adding an entire apartment is around $185,500. This includes the living space, kitchen, and bathroom. High-end finishes such as wood flooring and custom cabinets will increase the cost. You can expect to pay at least $175,000 for an apartment over a garage.

Most homeowners spend $78,000- $135,000 for in-law suites. It can be a simple bedroom to a complete detached suite within your yard. The bigger the room, the more money it will cost.

Conclusion

construction worker

The first question you should ask yourself before building a home addition is why. For example, you may want more space. However, how the space would be used decides if you require the addition.

Not all additions are necessary. Nor do all home additions add value. For example, the addition of a deck is usually not recommended as a whole room. It could be too small for the house to support the extra room you need. A home addition not only adds additional square footage but also increases the value.

Building onto an existing home can be tricky. So hiring the right contractor might be the best choice. Consult with a professional to see if a house addition is an option in your home.

Pro Remodeling is a local, family-owned business established in Tucson in 1971 and is regarded as one of the most trusted, best run, and customer-friendly contractors that provide the best home remodeling Tucson has experienced. If you are interested in adding more value to your home, contact the experts at Pro Remodeling today.

Home Improvement ROI

Home Improvement ROI

According to a 2019 Remodeling Impact Report, Americans spend $400 billion yearly on renovations. There is no doubt that home improvements increase the value of your home. But did you know that not all have the same return on investment (ROI)? For example, a cost vs. value report of 2021 states that the renovations with the best returns were related to curb appeal. On the other hand, the projects with the lowest returns were related to living space. Home improvement ROI is an important factor when considering and choosing home improvement projects.

This article walks you through what home improvement ROI is, how it works, and what renovations add value to your home.

Is Home Remodeling a Good Investment?

Yes! Home remodeling is a pretty good venture, especially if you plan to sell your home soon. The home improvements with the best return on investment are related to curb appeal. It includes exterior remodeling, home décor changes, landscaping, or a door replacement.

In the same line, a minor remodel will pay out more than a high-end one. For example, a minor kitchen remodel has a better ROI than a major kitchen remodel.

However, it depends on what you plan to do with your home. If you plan on staying for five years or longer, you can go ahead with the look and upgrades you want.

What Is the Average Cost of Home Improvement?

Home Remodeling Cost

The cost for home renovations varies depending on what you want to do and how big your home is. For example, for home exterior remodeling, the average cost ranges from $2,600 to $92,000. But the same is $3,300 – $120,000 for home décor changes.

Home improvement costs are calculated per square foot. For example, for home exterior remodeling, the average cost is $33.30. But home décor changes have an average of $27.20 per square foot.

Also, remember to include your commute time when calculating ROI! The extra travel time adds up, and it can be a significant factor in home value. Here are some of the factors that affect the cost of renovations:

Permits

Renovations often require permits, especially those involving electrical and plumbing work. Generally, contractors include the cost for permits in their contracts. However, if you are going the DIY route, you may have to obtain the permits yourself.

Construction Labor & Materials

The home improvement costs also include construction labor and materials. The average cost to hire a contractor depends on where you live and can be $20-$45 per hour. You can save some money by doing the work yourself, but it will cost in time! Also, the expense depends on the material you choose.

Time of the Year

The home improvement cost may vary depending on the time of the year. For example, renovations to the home’s exterior will be cheaper during winter. This is because there were fewer home exterior projects started at that time.

Increase in Material Price

Watch the prices of materials if you are doing a home improvement project. If you need something, buy and stock it when the prices are cheap.

Inconvenience

Finally, your inconvenience during renovation also factors in when calculating the expenses. For example, tearing down things can be loud, dusty, and cause general inconvenience. The same goes with a kitchen remodel. Since the space will be inaccessible, you’ll be eating takeout in the meantime.

What Is Home Improvement ROI?

The ROI for home remodeling projects depends on your intent to a great degree. If you plan to sell your home soon, exterior remodeling is the way to go.

If you plan on staying for a long time, any home improvement will add some value. However, it is not much since homeowners tend to invest money only in renovations that will pay off.

What Are Some Home Improvement Costs that Can Be Deducted from Tax?

The cost of some improvements can be deducted from your taxes. Home improvements that have tax deductions are electrical system upgrades and energy-efficient projects. Home décor changes also bring in some tax benefits because of their direct impact on home value.

According to Budget Dumpster, the expenses related to these home remodeling projects are deductible up to $500 per year. However, it does not include all home décor costs. Instead, homeowners can claim the costs incurred by energy efficiency improvements.

In addition, home improvement costs can be deducted over a period if the project is expensive. If you plan to stay in your house for at least 7 years, then you can make a deduction. After that, you deduct up to $1,500 each year until it is paid off.

How Do You Calculate Home Improvement ROI?

ROI or return on investment is a measure of the profitability of an expense. It is generally expressed as a percentage, sometimes as a ratio.

ROI of home renovations = Amount spent/Total increase in home value.

For example, if you spend $15,000 on renovations and the home value increases by $20,000. The calculation goes as follows: 15/20 = 0.75 or 75%.

This indicates that a home remodeling project is worth roughly 75% of its original price. This is because it increased the property’s value by $20,000.

Home Improvements that Add the Most Value in 2021

Not all home improvements offer the same results. Some have a better ROI than others.

The home exterior remodeling has the most favorable ROI. The improvements with the highest return on investment are usually related to curb appeal. This includes exterior remodeling, home décor changes, landscaping, or even a new front door.

But, home interior renovations like an extra bathroom or kitchen do not add much value to your home. This is because homeowners invest money in renovations that will pay off for them.

So what home improvements give you the best ROI? Here are some home improvement projects that offer high ROI in addition to a good resale value: 

Garage Door Replacement

Best Home Improvement ROI - Garage Door Replacement

Replacing the garage door has the highest ROI at 93.8%, as per the statistics. It will pay for itself, especially if you choose to reuse your motorized opener. Replace your garage doors with a four-section door and heavy-duty galvanized steel tracks.

A new garage door can improve your curb appeal to a vast degree. Moreover, it can also keep your home safe and increase energy efficiency. However, keep in mind that the new door should match the architecture of the whole house.

Electrical Upgrades

Electricity is something that homeowners cannot live without. Home electrical system upgrades are very important. They can make your home more efficient and less likely to start a fire.

With an ROI of 87%, it’s one of the most profitable projects you can undertake, as per home improvement experts. The high ROI is because of its long-term benefits for homeowners.

A few hundred dollars on a home electrical system upgrade will increase the resale value. It also improves energy efficiency to a large extent. You can recover your investment in only a few years with electrical upgrades.

Manufactured Stone Veneer

With an ROI of 92.1%, manufactured stone veneer is one of the much-desired remodeling projects. For the most part, this is due to its natural stone-like appearance. Apart from that, it is also cost-effective and doesn’t cost as much as a natural stone.

Stone veneer is easy to maintain and durable. Moreover, you can install it in a home without the need for professional help or extensive construction work. This saves you both time and money that would otherwise go into other smaller projects.

The stone increases the curb appeal and is water-resistant when used instead of sidings. Even better if you waterproof the surface beneath the stone.

Minor Kitchen Remodel

Another home improvement project that pays you back in a few years is the minor kitchen remodel. It can increase the value of your home by up to 20%.

A minor remodel may involve adding energy-efficient appliances and new countertops. Instead of replacing the cabinets, you can refinish the existing ones. A kitchen remodel can add more functionality and make the home more comfortable.

Kitchen home improvement costs about $30,000 – $50,000 on average. However, they can increase depending on the size and layout of your home.

Minor Bathroom Remodel

Best Home Improvement ROI - Minor Bathroom Remodel

Two types of rooms sell a house: kitchen and bathroom. A bathroom remodel has great potential and also a median ROI of 60.1%. You do not need to renovate the whole master bath. But if you make some minor changes, it will make a big difference. For example, try converting the showerhead into a rain shower. It’s something potential buyers will enjoy.

Moreover, try updating the lighting to brighten things up. Also, a new or refinished vanity can help if you plan to sell your home shortly. These simple things can help the future owner feel right at home.

Fiber Cement Siding Replacement

Another home improvement that provides the best ROI is fiber cement siding replacement. The siding replacement has an average ROI of 69.4% as of 2021. And homeowners can recover their costs within a few years.

Putting the fiber cement siding on the exterior costs approximately $19,626. In return, you can see an increase in the value of $13,618. Fiber Cement mimics the look of wood without the need for extensive maintenance. Since it is not wood, it will not rot or warp over time.

Besides, fiber cement siding also increases your energy efficiency to a large extent. It is also pretty easy and doesn’t require much time to install. You can do it yourself if you have some basic home renovation skills. However, hiring a contractor will be more cost-effective in the long run.

Vinyl Siding Replacement

Vinyl siding is a popular choice for homes that enjoy extremes of climate conditions. Not only does it gives a fresh appearance to your home, but it is also economic. In addition, compared to others, it is durable and requires the least maintenance.

Moreover, it is easy to install and doesn’t take long for professionals to finish the job. Depending on how big your home is and what type of siding you want to be replaced with vinyl, it takes a day or two. Vinyl siding replacement costs $16,576 but pays you back with an average ROI of 68.3%. With that, you can expect $11,315 in cost recouped. 

Vinyl Windows

Vinyl windows replacement is another excellent idea for a home renovation. It has an ROI of 68.3% and costs about $19,385. The new windows also increase the value of your home by $13,297 in return.

Vinyl windows can save you money on energy bills due to their energy efficiency. As a result, they prevent heat and cold air from getting inside your home.

In addition, homebuyers tend to love the look of vinyl windows. They are also easier to clean and don’t require much maintenance, which is a plus for home improvement ROI.

Hardwood Flooring Replacement

Homes with hardwood floors do stand out from other homes on the market today. Adding hardwood flooring is one of the most profitable home improvements. It has an ROI of 106%, according to the National Association of Realtors.

Moreover, you can recover your initial costs within two years or less depending on the type and quality of the floor. The hardwood flooring replacement costs $4,700 and pays back with an average increase in home value of $5,000. This is something worth considering if you plan on selling quite soon.

Refinished Basement

A 2019 study found that remodeling could achieve a 64% revenue-making ROI. What is built into the basement determines whether the expense becomes worth it or not. For example, a family room with a home theater, laundry room, and home office adds to the resale value.

What this means is that your home will become more valuable due to its added square footage. Moreover, home buyers are willing to pay more for homes that have extra usable living space.

Refinishing the basement costs $46,900 but pays off with an average value increase of $30,000. The cost recouped will depend on the square footage.

Wood Deck Addition

Best Home Improvement ROI - Wood Deck

Adding a new deck has also been famous among homeowners in recent times. Remodeling Magazine believes new wood decks are one of the best projects for ROI at 65.8%. These are an excellent addition to a home for resale, said a NAR report.

The average cost of a wood deck is $16,766. That figure adds up to $11,038 in reselling value to your home. It is also inexpensive when compared with composite. Moreover, wood decks add outdoor living space when installed.

On the other hand, adding a composite deck can cost you $22,426 with an ROI of 63.2%. In turn, the home value increases by $14,169, which is not bad. In addition, composite decking lasts long and requires low maintenance. This makes it the best choice for projects that will serve you for a long time. Projects like this are intended to serve you rather than make money in the future.

However, most homeowners prefer wood decks because of their traditional look and appeal.

How Do Home Improvements Impact Resale Value?

All renovations affect the resale value to varying extents. Home exterior remodeling has some of the highest returns, with an average increase in value at 98.15%, while home décor changes have an ROI of 40.54%.

The home improvements with the best ROI are related to aesthetic appeal and sound design. However, they do not have a direct impact on your home’s value. They only increase it secondhand because of their impact on buyer perception.

Additionally, remodels such as electrical system upgrades also have a positive impact on the asking price. The reason being, the upgraded wiring reflects in the appraisal, which adds a boost in value.

However, expensive cosmetic improvements like swimming pools don’t carry much weight in the resale value. Not everyone wants to spend money on the safety and maintenance of the pool.

How Do I Finance Home Improvements?

There are many ways to finance home improvements. You can take out a loan, get a HELOC, the second mortgage, or save up the money you need for your project over time.

An alternative option is using home equity loans, where most banks offer up to 80% of the home value as loan amount with competitive interest rates and repayment schedules.

Another way to finance renovations is through credit cards, but it comes with high interest rates so make sure you pay them off as soon as possible.

Home Improvement Loan

Home improvement loans require homeowners to have 20% of the total down payment and closing costs. The average interest rate for a home equity loan is about 18%. This means that it can be a great option if your credit score allows it and is pricey in the long run.

Cash-Out Mortgage Refinance

With a cash-out refinance, you can refinance the existing mortgage for a greater amount and get a lump sum in hand. Cash-Out Refinancing is an expensive option if you only need a relatively modest sum of cash out. It is not your best decision if you only need a relatively small amount of money.

FHA Title 1 Loans

FHA Loan

Title 1 loans allow you to borrow up to $25,000 for a single-family home. FHA guarantees this financing for home repairs and improvements. Even applicants whose scores have a poor credit rating can apply. You don’t need home equity, and you can borrow $2500 a month for a multifamily house.

FHA 203(K) Loans

You can also borrow money to buy an affordable house or fix your house through the government FHA. The minimum loan amount is less than 3.5 percent. The house must be a primary residence, i.e., the renovation will never cover any “luxury.”.

State and Local Financing

You also have the possibility of participating in programs managed by local governments or states. Many of these require income requirements. In addition, it can help finance constructing the new house, improving their infrastructure through energy-efficient upgrades, adapting properties for disabled people, and other projects.

Conclusion

In other words, home improvement ROI depends on several factors. The general rule says that home improvements increase their value and pay off within a few years. However, it depends on their price and type. However, not all home remodeling projects are created equal.

Also, you have to consider all home improvement expenses and not only the costs. The expenses such as design fees and permit costs will also impact the average cost. It also pays to consult with a real estate agent to track the real estate market trends.

For those requiring financial assistance, there are various home improvement loans available. However, it pays to consider if the home improvements will add more value before applying for a loan. If the renovation doesn’t generate enough ROI, there’s no point in financing.

Pro Remodeling is a local, family-owned business established in Tucson in 1971 and is regarded as one of the most trusted, best run, and customer-friendly contractors that provide the best home remodeling Tucson has experienced. If you are interested in adding more value to your home, contact the experts at Pro Remodeling today.