Home Improvement ROI

What color trends work best when selling my home?

One home improvement trend that pays big dividends is also one of the easiest do-it-yourself projects: Painting. Dollar for dollar, painting is one of the best returns on investment you can spend on home remodeling. For a few hundred dollars and a bit of elbow grease you might be able to increase the selling price of your home many thousands of dollars by making it look clean and up to date.

Is this home improvement ROI the right choice for you? Take this quick quiz to find out...

1. Is your home painted in an out of date color? Home improvement trends change over time and one of the most obvious changes involve color. Think back to the "harvest wheat yellow" or "avocado green" of the 1970s. Create an up-to-date look by using trendy colors to compliment the home.

2. Do you have murals or custom colors that are difficult to match in certain rooms of the house? Children's bedrooms often have decorative murals that may not appeal to different ages or gender of potential buyers.

3. Is there chipped, peeling or faded paint anywhere on the inside or outside of the home? Make it look fresh and clean by using the same color to quickly touch up the defects.

4. Ask your real estate professional about hot home improvement trends and contemporary colors. He/she will tell you what is in demand in different areas of the country and for different home values.

5. Visit online real estate listing services like www.HomesandLand.com to compare your home with other listings in the area. Pay special attention to hot color trends and materials used in professionally staged homes.

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What Fast Home Improvement Ideas can I do in a weekend?

Need a few fast home improvement ideas that don't cost a lot of money? Keep reading!

Think Green. Updating light fixtures and bulbs not only saves money but is good for the environment –all while providing an immediate return on your investment. Once you are finished with the lighting, consider updating those old energy hungry appliances; water heaters, dishwashers and washer/dryers are common culprits. Call local energy providers to find out if your city or county offers incentives for the purchase of energy efficient appliances.

Weather-Proof. Reduce energy costs by making minor modifications to the doors, window and insulation of your home. Call your local electric company to inquire about a free energy audit inspection then take the results to your local hardware store to purchase exactly what you need.

Xeriscape your yard. Using native plants for landscaping is not only beautiful and ecologically sound, it also reduces the cost of water, fertilizer and maintenance.

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What are the best green home remodeling tips today?

As consumers and home buyers search for ways to reduce the cost of energy and impact on the environment, green home remodeling is finally getting the attention it deserves. Take advantage of the green home remodeling trend by using these helpful tips when shopping:

1. Search for Energy Saver appliances and FSC certified wood products. This Forest Stewardship Council indicates the wood is recycled or sustainable.

2. Avoid products or materials that emit harmful fumes or negatively impact the air quality. Common culprits include paint, adhesives, flooring, finishes and carpeting. Look for the green seal of approval when shopping.

3. Reduce water consumption by installing aerators, flow control and updated plumbing fixtures.

4. Let the sun shine in by switching to solar! Sky lights, solar security lights, solar pool and water heaters have dramatically improved in recent years.

5. Plant an edible landscape. It's not only fun and healthy for the entire family but it is good for the environment and saves money!

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Home Remodeling: Money Pit or Investment?

Sweat equity is one of the best ways to invest in real estate because it allows the buyer to obtain a property in need of remodeling or repair, fix it up and sell for a profit. However, just because it sounds easy on late night infomercials, does not mean it’s always simple in the real world.

Here is what you need to know about home remodeling to make a return on your investment:

1. First, have a professional appraisal performed. Small home improvements often cost more than anticipated due to changes in building codes. A qualified appraiser can help identify potential money pits that will waste all of your time and money.

2. Next, calculate the total cost of ownership. Owning a home entails more than the cost of the mortgage. Include property taxes, insurance, tools and supplies, pest control, yard maintenance, security, travel to and from the home and other miscellaneous expenses.

3. Finally, don't forget the cost of selling! Typical real estate sales require 7 percent in real estate fees plus another 2 to 3 percent in other fees related to selling your home. A good rule of thumb is to estimate approximately 10 percent of the total selling price toward closing costs and commissions when selling the home.

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How do I calculate tax rates with ROI?

Home selling help comes in many different forms but doesn’t always cover everything. One rarely mentioned mistake new investors make is forgetting to include taxes when calculating the ROI, or Return on Investment, for a given property. Depending on your specific tax bracket, the potential profit derived when selling a home will be taxed as either earned income (which could place you into a higher tax bracket for all of your earned household income!) or capital gains.

Begin by determining how long you will hold the property. If you purchase the home and resell within one year the profit is typically taxed as earned income. If you hold the property for over a year then you may qualify for capital gains instead. The difference can be significant when calculating a potential return on your real estate investment. For example, if your profit from the sale of a home was $50,000 taxed at an earned income rate of 30 percent then you would owe $15,000 in taxes versus only $7,500 if treated as capital gains.

Understanding proper taxation of any real estate investment is imperative to calculating the true ROI and determining if the time, money and effort are worth the final result.

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Can I repair it myself?

An unexpected home repair can create a big problem in your budget; especially with the average cost of a repair starting at $75 an hour just for labor.

Next time an unexpected home repair pops up, take a few minutes to search online for a quick tutorial or make a visit to your local hardware or home improvement store. Many stores offer free classes for do-it-yourself enthusiasts and are happy to provide advice on the products they sell. Not only will you have learned a new valuable skill, but the money you save on labor could be put toward upgrading or remodeling your home. Many home remodeling projects are affordable once you learn how to do it yourself.

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