VA Home Improvement Loans
Once you own your home for a while, you may want to consider using its equity to make some repairs or improvements. Some types of upgrades and improvements can increase your home’s value. The VA Cash-Out Refinance Loan can provide needed cash a Vet might need to make such upgrades.
What Home Improvements Increase Your Home’s Value?
Some projects increase your home's resale value more than others. While you don't generally get back 100% of the investment when you eventually sell, you do enjoy living in your home more in the meantime. Here are six improvements to consider:
Bathroom Upgrades or Addition: Replacing your fixtures and upgrading your tile, lighting, flooring, and counters may bring you between 50 and 70% of the costs when you resell. Adding a bathroom usually recoups about 50% of costs but can depend on the neighborhood and the number of bedrooms in the home. Adding a second bathroom to a four-bedroom home would mean more than adding a third bathroom in a three-bedroom house, for example. Adding a ground floor half or full bath when there isn’t one may bring more, too.
Garage Door Replacement: A good-looking garage door increases curb appeal. You can expect to recoup about 90% of the costs for an upgraded door. Some experts claim you get 100% back for durable doors made of fiberglass, aluminum, or steel, especially if they are automated and weather-resistant, energy-saving models.
Decks: Increasing living space is desirable in any home, even outdoor space. Wood decks or patios return you more than composite types. Adding a wood deck could return you 80% of the cost, whereas composite only about 60%. Patios could recoup about 40-50%. Stick to a reasonable size for your home. According to Remodeling, an average-sized, 16' x 20' deck works well for an average house.
Exterior Veneers: Improving curb appeal with manufactured veneers that make your home look like it's made from the stone will make your home more desirable. You could even only add a stone look to the foundation or first floor. Depending on how much you do, some reports claim you can get as much as 97% of your money back when you sell.
Kitchen Upgrades: The kitchen is the heart of the home, and many buyers look at that room first. Some relatively easy improvements worth doing include adding energy-efficient stainless-steel appliances, replacing old worn countertops and floors, and repainting or refinishing cabinets. You will likely get about 80% of those costs back. A more costly, complete redesign of a layout will probably not bring more than 50% back, depending on the materials used.
Window and Siding Replacement: Energy-efficient windows not only save you on your utility bills, but they are also very sought-after by home buyers. You could get about 75% of replacement costs back on the resale. New, energy-saving siding improves curb appeal, and you can recuperate 76% (based on a purchase of 1250 square feet of siding).
You may notice that many of these improvements are on the exterior of the home. If you ask a realtor, you will hear about curb appeal. A buyer's first impression goes a long way. After the exterior, the buyer also looks at kitchens, bathrooms, and energy efficiency. Keeping these things in mind may help you decide on the best home improvements for you.