For many people, homeownership does more than provide a person with his or her castle. Owning property is part of the American Dream and can provide a sense of security and a forced saving plan. Consumers looking to get into the action either by purchasing a new or previously owned home should certainly act now to take advantage of low mortgage rates. However, instead of investing money into remodels as a way to increase home value, tweaking your home to suit your personal tastes is a wiser idea as many home renovations do not generate a full return on the expenditure and may cause a financial loss.
Historically speaking, consumers have long believed that real estate investment was a sound investment, but recent market trends have changed the conventional way of thinking. Consumers banking on their home to increase in value quickly, increase their chances of ending up as sad statistics. Instead long-term planning should be a primary factor surrounding both home purchases and renovations.
Tips for a Kitchen Remodel
For more than 30 years, Consumer Reports (published by the independently funded Consumer Union) has been researching consumer products and trends to ensure that people make wise purchasing decisions. The agency has analyzed homeowner insurance needs, appliances, beauty products and food. Currently the organization provided some smart advice for those looking to get the most bang for the buck out of kitchen remodeling.
According to the source some tips crucial to remodeling a kitchen to be practical, stylish and in budget include:
- Take Your Time: Rome was not built overnight and your kitchen should not be either. Properly planning a kitchen renovation will allow consumers to comparison shop for the best prices on appliances, fixtures and decorative touches. The process will also allow for wise decisions, preventing buyer's remorse and can also give time to develop affordable dining options while the kitchen is out of commission. Rushing can also be costly as according to the source (which garnered its information by surveying 3,000 readers) fickleness added about $1,500 to the price of a kitchen renovation.
- Size Matters: While luxury kitchen renovations may photograph well, they are not practical. Larger homes are no longer chic, and neither are the over sized kitchens that go with them. The National Kitchen & Bath Association has stated that the smart kitchen features a distance of 4 to 9 feet between the sink and the refrigerator or between the sink and the stove. Not only would a larger space make cooking a challenge, the area requires more effort to keep clean.
- Budget Breakers: A skilled carpenter can make any renovation add-on sound like a great idea, however, those changes mid way will cost you. Those remodeling their kitchens should make a budget and stick to the original plan to stay on course.
- Get a Contract: As a matter of legal protection, consumers should select a licensed contractor and make sure to get a contract of the work in writing. Every change should be written out (paper and pen is fine), the prices should be itemized and the document needs to be signed by both parties to prevent any problems.
Cost Analysis of Kitchen Remodels
When it comes to kitchen renovations, a practical approach is best, as the expenses involved are not guaranteed to generate a return on the investment. The common rule of real estate is that kitchens and bathrooms can be deal breakers when it comes to a home sale, so budget management is essential to coming out on top.
The results of Remodeling Magazine's most recent Cost vs. Value report has shown that when it comes to major kitchen renovations with an average price tag of $57,215 only $41,260 (or 72.1 percent) of the original investment will be recuperated. That figure indicates a decrease of 3.9 from the previous survey conducted in 2008-2009. On the other hand, minor kitchen renovations costing about $21,411 generate a healthy rate of return of around $16,773 (or 78.3 percent). That number marks a decrease of value as well, however, it is a more conservative difference of 1.2 percent.
Smart Kitchen Remodeling Trends
If you are about to embark on a kitchen remodeling project, there are some trends that are going to be popular with the masses. Open kitchens featuring open spaces into adjoining rooms or built in bar areas are always a crowd pleaser. Green is also in and choosing Energy Star compliant appliances and earth friendly materials would be a wise move.
Homeowner's looking for the money to pay for the upgrades may opt to choose a cash-out refinancing home loan. This type of mortgage allows homeowners to tap into the equity in their home and Mortgage Marvel is the premier tool to help you find the best mortgage interest rates currently available.