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North Atlanta National Bank's Stakeholders'
Report
1st Quarter 2007
Home Improvement Projects that Add Value to Your Home
Spring is a traditional season for tidying up around the house. It also is
a time when many homeowners undertake home improvement projects
- opening or tapping home improvement loans in the process.
Indeed, home improvements are the second most popular use for
home equity borrowing, and it's easy to understand why. Home improvements
can actually increase the fair market value of your home.
But don't assume every "improvement" will increase your home's value,
and remember that the best projects to suit your purpose depend
on whether you're planning to sell the house or are staying put and
trying to improve living conditions for your family. These may result
in opposite approaches.
If you're going to stay in the house for a few years, you can follow your
bliss and undertake the projects that are most important to you and
your family. However, if you're sprucing up the place to sell it, you
need to think in terms of projects that potential buyers will value most
- and that will provide the biggest payback in relation to cost.
Before we list the top-10 such projects, here are two to avoid: swimming
pools and extensive landscaping. Swimming pools may even
lower your property value because of the expensive upkeep required,
along with liability issues and other concerns. And big landscaping
projects, while they may turn a few heads, seldom recoup at resale the
dollars you spend on them.
Top Value-Adding Projects*
1. Painting
Painting (interior or exterior), as long as it is done well and with
tasteful, neutral colors, is one of the only home improvements that
can actual turn a profit for you. Value-add: up to 300%
2. Bathroom Addition
Especially if your home has only one bathroom, or does not have
an average number in relation to your neighborhood, adding a new
bathroom is another worthy home improvement project. Value-add:
80 - 130%
3. kitchen Remodeling
Kitchens and bathrooms are among the most-scrutinized rooms by
prospective buyers, who often do not want to face the disruption of
living through the remodeling themselves. If you do a nice upgrade
that fits in with the style and value of your home, you should reap the
reward. Value-add: 68 - 120%
4. Bathroom Remodeling
The same can be said for modernizing a hopelessly dated (think: dark
pink and aqua) bathroom with attractive fixtures, faucets, new tile
and sink, etc. White is a timeless choice. Value-add: 65 - 120%
5. Deck Addition/Improvement
Adding an attractive deck, or remodeling your old one, is usually a
safe bet to bump up your home's value. Value-add: 65 - 90%
6. Window/Door Replacement
Old-looking, energy-inefficient windows and doors can sometimes
be a stumbling block to resale. Traditional-style, energy-efficient replacements
are a good idea. Value-add: 50 - 90%
7. Finishing unfinished Space
Without having to build the structure, you can add square footage by
building out a basement, bonus room or attic. More space typically
translates to a higher sales price. Value-add: 50 - 90%
8. Adding New Space
Whether it's a new sunroom, bedroom, family room or even a garage,
the added cost of building the structure and interior space are usually
well worth it. Value-add: 50 - 80%
9. Home office Remodeling
As more and more people work from home at least on occasion, another
popular remodeling choice is building a new home office. Just
make sure to include adequate networking, broadband and electrical
connections. Value-add: 60 - 70%
*As ranked by HGTV according to the percentage of the projectˇ¦s cost recovered at resale.
For information about North Atlanta National Bank home improvement loans or home equity lines of credit,
please contact Samantha Rogers at 678-277-8409 or srogers@nanb.com.
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