Many people take advantage of home remodeling to increase the value of their home. They often sell their property faster and at a higher price because of their home remodeling accomplishments. Many times you can earn $2-3 for every $1 you spend. That means that remodeling your home can really make you money.
The problem is that most people aren’t sure where to start with their home remodeling project. The two most popular areas to increase home value through remodeling are:
- kitchen remodel
- bathroom remodelation
The wonderful thing about both of these home remodeling areas is that they are not very large by nature. Unlike opening a den where you need to remove walls, a bathroom remodeling or kitchen remodeling project is done on a smaller scale. As a result, you don’t have to spend as much money on your home remodeling project to keep your home looking fresh and new.
But let’s look at some specific projects that will increase the value of your home in these two areas in particular.
kitchen remodel
If you’re considering remodeling your kitchen, a good place to start is with the cabinets. That’s because they’re one of the first focal points you notice upon entering any kitchen. A fresh coat of paint on exposed walls also helps. The room will not only smell fresher, but it will also look new. Other items on your to-do list may include:
- new appliances
- stainless steel sinks
- new counters
- New tile or backsplash
- Hardwood or laminate flooring
The kitchen remodel can also include new furniture, such as breakfast tables and chairs, island carts, or bar stools. You don’t need to spend a small fortune on your kitchen remodeling project. You just need to appear visually appealing to potential buyers.
Remember, the newer your home looks, the sooner it will sell for the price you want. Remodeling your kitchen is a cost-effective way to do it.
bathroom remodelation
Just like kitchen remodeling, bathroom remodeling also increases the value of your home. Better yet, the bathroom is even smaller than the kitchen…at least in most homes. So if you’ve considered remodeling your bathroom to earn more on a home sale, don’t forget the following areas to update:
- cabinets
- countertops and vanities
- sinkholes
- Floors and Tiles
- tubs and showers
Home remodeling reduces taxes
Another fact that many people don’t realize is that home remodeling can have an added benefit come tax time. Is that how it works:
When you earn money from the sale of a home, you are charged capital gains tax. What that means is that any money you earn on a home’s equity may be taxable. However, under IRS Publication 523, Selling Your Home, you can report certain improvements you made to a home, such as kitchen remodeling or bathroom remodeling. This can also include items such as:
- Extensions such as bedrooms, bathrooms, terraces, garages, porches or patios.
- New plumbing or wiring.
- Any new heating and/or air conditioning unit.
- Interior upgrades like built-in appliances and wall-to-wall carpeting.
- Exterior improvements such as paving the driveway.
All tax-acceptable improvements are those that add value to your home and extend the life of your home according to the IRS, not you. So check with your accountant who knows IRS tax law to make sure any home remodeling you do is covered. Also, be sure to save your receipts for proof of cost.
Where to look for kitchen and bathroom remodeling products and services
If you don’t like doing it yourself, it’s probably best to get quotes from home improvement contractors to help you with your remodeling project. Most of the products needed for your project can be found at various outlets or home improvement stores. However, you can probably save the most money by purchasing discount home remodeling products directly from the manufacturer.
Remember, remodeling your home will not only make it more livable and enjoyable for you, but any renovations you do to your home will increase your selling price…and maybe save you money when it comes time to pay taxes, too.
