The Tecumseh Herald’s
MARCH 9, 2017
Home & G rden S P R I N G
PAGE 2 | SPRING HOME & GARDEN
Home remodeling projects can bring returns on
THE TECUMSEH HERALD | MARCH 9, 2017
investment
By JACKIE KOCH
jackie@tecumsehherald.com Spring is a busy time for home repair and remodeling, and homeowners often wonder if the projects they undertake will pay off in the long run if they eventually sell their home. According to the National Association of REALTORS (NAR) research department’s 2015 remodeling impact report that measures the cost and return of home remodeling, redesign and restructuring projects, home improvements with the greatest cost recovery include new roofing, refinishing hardwood floors, insulation upgrades, new wood floors and a new garage door. The report shows that roof replacement typically brings a 105 percent return on money spent, while those who renew hardwood floors recover 100
percent of their expenses at resale. The report said homeowners who upgrade the insulation in their homes see a 95 percent return on their investment, with new wood flooring bringing back 91 percent of monies spent and a new garage door garnering an 87 percent cost recovery at resale. Regardless of cost recovery, some projects make a home more attractive to buyers and more likely to secure a faster sale. The top five interior projects don’t necessarily bring a big payback, but home appeal is an important factor. Besides new wood flooring, a kitchen upgrade of $30,000 is likely to bring a 67 percent return, as will a $60,000 complete kitchen renovation, capitalizing on the popularity of newer, more
modern kitchens. The bathroom is another frequently remodeled room, with a $26,000 renovation bringing back a 58 percent return and adding a new bathroom altogether returning 52 percent of the investment, according to the report. “When spring comes a lot of people are doing decks and pole barns, and remodels of kitchens and bathrooms,” said Gordie Turner, manager of Tecumseh Plywood, a local business providing construction and home remodeling and repair products. Outdoors, in
MARCH 9, 2017 | THE TECUMSEH HERALD
addition to roofing and garage doors, swimming pool would likely only new vinyl siding improves a home’s return 50 percent of the investment appearance and to install. can pull in 80 There are many ...THE GREATEST COST percent of the options for those money spent dreaming about RECOVERY INCLUDE NEW when a house is and planning home ROOFING, REFINISHING sold, while new improvements, HARDWOOD FLOORS, wood windows according to Turner. INSULATION UPGRADES, increase both “Two popular websites NEW WOOD FLOORS AND the home’s look now are Pinterest A NEW GARAGE DOOR and its warmth, and Houzz, where returning around people can get ideas 58 percent of the for their kitchens and homeowner’s investment at resale. bathrooms, or back yard, decks, The NAR 2016 remodeling impact anything,” he said. When spring is report focused on outdoor features in the air, homeowners’ thoughts and ranked a lawn care program as a often turn to ways to improve project that appeals to many buyers, and love their home more. n estimating that an attractive lawn by landscape professionals would secure major returns on investment. A new seed lawn brings the highest cost recovery rate of 417 percent, and a standard lawn care program was estimated to bring a 303 percent return. A landscape upgraded with a sod lawn could bring 143 percent in returns and an overall landscape upgrade or a new patio or deck was estimated to bring back 100 percent in cost recovery. A new
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Before AFTER
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THE TECUMSEH HERALD | MARCH 9, 2017
LENDING OPTIONS AVAILABLE FOR HOME IMPROVEMENT By JACKIE KOCH
jackie@tecumsehherald.com Homeowners looking to upgrade, repair, renovate or remodel their homes this spring may have options to borrow funds to create the home of their dreams. Lenders offer various loans in amounts that can range from fixing up the smallest room to building an entire addition. Some lenders offer home improvement loans, home equity loans and home equity line of credit. The main difference between the loans is that the home improvement loan and home equity loan usually have fixed interest rates, while a home equity line of credit most often has a variable rate. Repayment terms can also differ between the three types of loans. Also, with a home equity line of credit the homeowner is allowed to borrow up to a certain amount for the term of the loan, with a time limit set by the lender. Karen Messer, financial services officer at Greenstone Farm Credit Services (GFCS) in Adrian, said her
establishment does not offer home equity loans or lines of credit, but does provide home improvement loans. While a home equity line of credit can be used for a number of purchases,
specific home improvement loans require the funds to be used for home repairs or remodeling. “The funds would have to go toward that home improvement, if they were
doing an addition or updating their kitchen. We kind of monitor funds to do that improvement and likely there would be an appraisal,” Messer said. The interest rates for home improvement loans depend on how many years the loan would be taken out for and what kind of property the loan is for. The time period for repaying a home improvement loan can go up to 30 years, especially for major renovations or additions. “We want the improvement done within 12 months, but the loan itself could be termed out up to a 30 year,” Messer said. Homeowners looking for loans need to submit tax returns, bank statements and W-2s along with their loan application, as well as estimates or bids on materials and total project costs. “We want to have some research that they’ve done on their part that it’s truly going to cost,” said Messer. Customers need to be aware that fees are associated with home improvement loans that can add to the cost. The only up-front fee that is required from GFCS is the appraisal.
MARCH 9, 2017 | THE TECUMSEH HERALD
Messer said the bank would ask for the appraisal to be paid for, which is generally $415, but other than that, nothing would be due until closing. Typically closing costs include the origination fee, title work and recording costs. Whatever projects a homeowner has in mind, there is likely a lender and a loan to fit their needs to make their house a haven to come home to. n
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