Most Cost Effective Home Improvements

[12b-6]

Recently bought a house that is going to take a lot of work to get back into shape. Searching for some wisdom on generally how to go about doing it.

What are peoples' experiences with the cost effectiveness of home improvements? Do more expensive upgrades like granite counters and hardwood floors tend to pay for themselves when it comes time to sell? Is it better to limit the quality/cost of improvements if one's house is not in an upscale neighborhood?

What jobs are best done DIY and which make more sense to outsource?

These are highly subjective and area-dependent questions, but I'm curious what peoples' individual experiences have been in this area.

[Dragline]

What is your time-frame for owning it? That is usually the key issue.

[12b-6]

What is your time-frame for owning it? That is usually the key issue.

~5-7 years of living in the home, and likely renting it out after that (depending on market and life factors at the time).

[George the original one]

Make the upgrades that make you happy, assuming you're not going to sell in the next 5 years. Because beyond that timeframe, tastes change and what's in-style now won't be after 5 years.

Maintained hardwood floors always are a good choice, but once they aren't looking as sharp as possible, that's when carpeting suddenly is deployed to hide them (rather than refurbishing).

Things that come & go in popularity:
pastels
tile
stainless steel
black
avocado green
red front door
one wall in bold color
solid surface countertops
built-in cabinets
fancy faucets
fancy sinks
interior columns
open floor plans
porches
sunken rooms
wet bar
game room
craft room
water features
vacuum system
sound system
alarm system

[Dragline]

I think I'd go light on them. Home improvements generally do not pay for themselves as a rule, unless you are DIY. It makes sense to DIY anything you are capable of doing and have the time for, except for anything involving natural gas and serious plumbing that involves metal pipes. Go read things like this at MMM to see what you think you might be able to handle: http://www.mrmoneymustache.com/2011/11/ ... -with-pex/ And ask your neighbors if you see them doing things or having them done.

Focus on things that are actually broken or about to break and problem areas, particularly if they involve water (like old tile in bathrooms). This means you probably just want to live in it as-is for a little while before doing anything.

Definitely do not exceed neighborhood standards for anything. Everything in neutral colors, too.

If storage is an issue, you might consider building a shed in the back yard at some point, but make sure you don't have building code or HOA issues. I hear endless horror stories about people building things without checking first and then being forced to remove them.

[JL13]

I don't have any actual experience with this, but I will say it seems safer to delay renovations until it's about time to sell because 1.) you get the time value of money and 2.) you can perfectly tune the modifications to the market at the time and 3.) You get to use up/wear out the current items at no additional cost.

[jacob]

IIRC, all home improvements have negative ROIs, a fact that's easily hidden in a boom market though. However, those ROIs are calculated based on paying professional contractors, etc. so if you can DIY and don't value your own time at the same exorbitant levels, those are the areas where ROI could be positive.

Otherwise, just treat renovation as a strategic retreat against entropy.

Also, neighbourhood prices leverage costs. A $7000 furnace costs equally much regardless of whether it's installed in a $35000 house or a $500000 house... however, it will be worth more in the latter.

[12b-6]

Unfortunately, some items have to be upgraded before even moving into the place--e.g., the four-inch shag carpet that is filthy and worn through (and not secretly hiding beautiful wood floors), and a deck that is ready to collapse.

It's interesting that the majority of improvements don't have much, if any, ROI. I figured even if you didn't do the work yourself people would pay a small premium for not having to deal with contracting the work out.

Given our limited time and skill set, DIY'ing any projects would likely be an irrational choice. I was still interested in doing it as a learning experience for the future, though. Those of you who have learned to do things like home improvement while still working full time (especially more than full time), do you wish you had waited until after retirement to take that on?

[Ego]

Sometimes the simplest things pay large dividends. For instance, buy a package of kids art paintbrushes at the 99 cent store and fill a few jars with the different color paints that were used on the interior and exterior. Keep them in a place that his handy. Whenever you see a nick, smudge or scratch, hit it with the touch-up paint. This one tiny thing will keep your paint looking new for years longer than normal. And it costs almost nothing.

[jacob]

Those of you who have learned to do things like home improvement while still working full time (especially more than full time), do you wish you had waited until after retirement to take that on?

In my case it didn't make much of a difference. I'm not really enjoying the process regardless. IOW, I haven't filled my "retirement" with more home renovation projects compared to when I worked full time.

[George the original one]

I figured even if you didn't do the work yourself people would pay a small premium for not having to deal with contracting the work out.

Nope. What people pay premiums for is perfection and perceived lifestyle. Perfection is a whole nother level above a finished home.

[George the original one]

Those of you who have learned to do things like home improvement while still working full time (especially more than full time), do you wish you had waited until after retirement to take that on?

No, I'm not eager to take on home improvement tasks while I'm retired. That's why the retirement home (my third home purchase) got new siding, windows, roof, woodstoves, flooring, wall heaters, minor electrical work, and finished downstairs before we got to retirement. I DIYed the flooring and most of the finished downstairs and we've been adding kitchen cabinets into what used to be .

The garden, on the other hand...

[Dragline]

Unfortunately, some items have to be upgraded before even moving into the place--e.g., the four-inch shag carpet that is filthy and worn through (and not secretly hiding beautiful wood floors), and a deck that is ready to collapse.

If you are getting carpet, look for a loop berber in a neutral color with mottling -- i.e., it looks like it has flecks or marbling in it. Very good at hiding stains. Or go with brown, but most people don't like it because it makes the room feel darker and smaller. Or look at alternative kinds of flooring.

Decks are usually replaced with "trex" type materials these days, not wood. They can be a real pain if there are foundational issues. Consider getting rid of it if that's an option. I would trade ours for stairs and a patio in an instant, but its still got life in it.

[12b-6]

I figured even if you didn't do the work yourself people would pay a small premium for not having to deal with contracting the work out.

Nope. What people pay premiums for is perfection and perceived lifestyle. Perfection is a whole nother level above a finished home.

Can you elaborate on what you mean by perfection? What does it entail beyond perceived lifestyle?

[12b-6]

If you are getting carpet, look for a loop berber in a neutral color with mottling -- i.e., it looks like it has flecks or marbling in it. Very good at hiding stains. Or go with brown, but most people don't like it because it makes the room feel darker and smaller. Or look at alternative kinds of flooring.

Good carpet tips, but we're planning to go with all hard surfaces. After acquiring multiple pets with sensitive stomachs (and the resultant 3am cleanup sessions), we are eager to never need a carpet shampooer again.

[jennypenny]

If you are getting carpet, look for a loop berber in a neutral color with mottling -- i.e., it looks like it has flecks or marbling in it. Very good at hiding stains. Or go with brown, but most people don't like it because it makes the room feel darker and smaller. Or look at alternative kinds of flooring.

Good carpet tips, but we're planning to go with all hard surfaces. After acquiring multiple pets with sensitive stomachs (and the resultant 3am cleanup sessions), we are eager to never need a carpet shampooer again.

We have the same issue. We put down laminate and wood everywhere. In the couple of rooms where I wanted some carpet, I bought nice indoor/outdoor sisal-looking rugs. I can take them outside and hose them off when the dog has had a particularly bad night.

I don't think you should only judge home improvements based on whether you'll get all of the money back out. It's also a question of marketability. In some respects, you have to keep your house in line with other houses in the neighborhood or you'll have trouble selling it when the time comes. E.g. if almost everyone has redone their kitchen and you haven't, your house will sit on the market, costing you money regardless of price. If you didn't want to redo the whole thing, you could at least paint old cabinets and add a granite countertop to make it look redone. It doesn't have to be big stuff. In my neighborhood, everyone has replaced the old hollow-core doors, '60s era bathroom tile, and the old siding. Nothing too expensive. No one in our neighborhood uses trex decking, just the 'deckover' stuff to make it look nicer, but we live on the wrong side of the tracks in Stepford.

[Kriegsspiel]

The most important consideration; what neighborhood it is in. You won't get much return out of a granite counter top if the next door neighbor is an abandoned house. I just finished gutting a house and rebuilding it, and I do wish I'd have bought in a better neighborhood so that I could get more ROI. Some of the things that people said they liked were white ice granite Formica counter tops, Allure flooring in khaki oak, and the lawn/landscaping.

DIY
--- Laying down subfloor and Allure flooring
--- Insulation
--- Landscaping
--- Cabinets
--- Paint (painters are super expensive)
--- Trim
--- Hanging doors

Outsource
--- We did our own demo. Sure, getting high on insulation and lead (?) paint is great, but at what cost? Probably would pay someone to demo in the future, since it wouldn't be that much more expensive, and would take a lot less time.
--- Siding
--- Windows
--- New concrete driveway/walkway/tearing up old concrete stuff
--- Drywall
--- Counter tops
--- Earthwork/yard. My yard was 100% weeds, and uneven. Landscaping companies have the Bobcats and such to level it out, and they can kill the weeds and lay down nice new grass. If you're looking to resell, I think a nice yard does add huge value. Like I said above, do your own landscaping, since it doesn't require any special tools and you can knock it out quickly.

Maybe
--- HVAC. A relative owns an HVAC company and came to help, but after seeing what goes into it, I think you could DIY.
--- Roof/gutters. I paid to have one put on, but MMM had an article about metal roofing that didn't look too hard. If I was remodeling a house I lived in, I'd put in a rainwater catchment system and solar on the roof.
--- Electric and plumbing are some things that you can do yourself if you want to learn how.
--- If you have doorways, open them up to create a more modern floor plan. You can DIY if you know how to identify load bearing studs and whatnot, or pay to have it done, but it's worth it.

[IlliniDave]

I get the sense that the biggest things you get in resale for typical sale-minded upgrades is improving the saleability of the place. I see things on occasion that show data in my geographic area implying kitchen and bathroom upgrades are financially a wash, flooring and windows generally have negative ROI, as do outdoor improvements (building a garage or quality outbuilding might be an exception). Those conclusions are based on averages so it's possible that the right upgrades matched with a discerning buyer could make them profitable, but to find that buyer might mean you're on the market a year instead of a month. The value of the homes around you is also a limiting factor, as is the amount and price point of comparable sized new construction in the area.

[jacob]

Before everybody goes to install a metal roof ... AFAIK ... the thing to do is to get the same roof as your neighbourhood. You don't want to be the metal guy if everybody else has tile or shingles. Apparently, that's the generic rule when it comes to everything housing. Everything should be style consistent.

[Ydobon]

If you are getting carpet, look for a loop berber in a neutral color with mottling -- i.e., it looks like it has flecks or marbling in it. Very good at hiding stains. Or go with brown, but most people don't like it because it makes the room feel darker and smaller. Or look at alternative kinds of flooring.

I think we'll be going down this route after staying in an attractive holiday cottage where it worked a treat. We're thinking a sort of milky coffee colour that won't be as dark as brown, but won't show up small spills.

IIRC, all home improvements have negative ROIs, a fact that's easily hidden in a boom market though

What about those that make (or save) you money over time, like solar panels or a more efficient furnace?

What is your time-frame for owning it? That is usually the key issue.

Spot on! A key point, but one that is often overlooked. The worst case I ever saw was with a relative's neighbour who bought a £150,000 new build house that depreciated to £125,000 within 2 years despite spending £25,000 on questionable home 'improvements' (you have to wonder what sort of idiot spends 1/6 of the supposed value on 'fixing' a brand new house). That was probably a bit of a punch in the guts.