When you first bought your home, it fit your needs perfectly, but now it just seems to be lacking. Or maybe there was something missing that you always planned to improve upon. In either case, you may be considering a home improvement. Here are a few tips to help you get the most value out of your improvement.

In making home improvements, you have to satisfy your family’s needs while increasing your home’s appeal to future buyers. Your chances of recovering your investment are best if the value of your remodeled home does not exceed the average neighborhood home’s value by more than 20 percent.

You should also consider how many more years you plan to own your present home. The appreciation in your home’s value generally takes three to five years to catch up with the cost of improvements. So if you plan to sell your present home in the next few years, it may not make financial sense to remodel it.

Improvements should be attractive, functional and in keeping with your home’s style. Some improvements offer a better return on your investment than others:

Kitchen improvements are the most likely to pay for themselves. By working with existing floor space, you can replace cabinets, appliances, wallpaper and flooring at a reasonable cost. Buyers also look for sunny, spacious kitchens with an informal family eating area and adequate storage and counters. Nationally, the cost of remodeling a kitchen ranges from $8,000 to $23,000, but the homeowner eventually recoups about 85 to 98 percent.

A second bathroom (or even a half-bath) is also one of the better improvements you can make. One bathroom for every two bedrooms is usually expected by home buyers and one bathroom for every bedroom is often considered ideal. The cost of remodeling or adding a bathroom ranges from $8,000 to $12,000, with 80 to 90 percent of that amount recovered later.

If you would like lower energy bills consider energy-saving improvements. These might include new doors and windows, better insulation, high efficiency heating equipment, or updated plumbing and wiring. An energy audit by your local utility company can help you calculate the payback period of any major investment (the time it takes for your energy savings to equal your initial cash outlay). If you decide to remodel, spend some time researching, seek help from experts and make sure you keep records of any home improvement bills for tax purposes.

Want help financing your home improvement? We can help!

If you are planning a home improvement, your FAIRWINDS Credit Union can help with financing.

Consider the advantages of using a home equity loan:

• Possible tax savings. Interest on a home equity loan may be tax deductible (check with your tax advisor).
• FAIRWINDS Credit Union offers both fixed and variable rate options.
• You can borrow up to 100% of your home’s equity (the difference between your home’s current market value and the total amount you owe on your home loan).
• We have a no closing cost option for qualified borrowers.
• We can provide a standard loan: (one lump sum) or a home equity line of credit (a revolving credit fund that allows you to borrow what you need when you need it, up to your approved limit)

For more information on financing your home improvement, call our Real Estate office today at (407) 647-8252 or click here.