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Equity Adding Foreclosed Home Makeover

The easiest way to add value to a home is through a strategic makeover. And ForeclosedHomes has identified four main target areas to focus your attention – and your money – that historically offer the best return on investment when it is time to sell.

First we’ve ranked them according to which is considered the best place to concentrate your budget, but you should adjust according to your own situation. If you already have an updated kitchen and a deck, for example, save your money or spend it on other important areas of your home.

1. Update the Kitchen:

   Improvements in the kitchen are the most cost-effective way to create “sweat equity” in a home, but you don’t have to totally redo your kitchen in order to add value. Start with basic cosmetics like flooring and paint. Then consider replacing drab cabinets, adding an island, or installing new appliances. You may be pleasantly amazed at how much you can do on a limited budget. Shop for bargains at places like ForeclosedHomes.com to stretch your dollars.

2. Add or Upgrade a Bathroom:

   The same goes for bathrooms. Begin with a facelift by painting or putting in new flooring. Then add fixtures, but avoid the ones with the pricey gold trim so that your budget doesn’t get blown-out on features that aren’t important. Replacing outdated items like the sink and toilet is not expensive, but can considerably enhance a bathroom.

   Or spend more and add a half bath where an unused closet or other space exists, to add value, convenience, and major sales appeal.

3. Paint:

   One of the simplest ways to dress up property while protecting it from structural deterioration is to paint. The project can be extensive or just a matter of touching up, depending on your budget and the condition of existing painted surfaces.

4. Add a Deck:

   Decks almost always return value dollar for dollar. You can transform a part of your yard that was previously neglected into an ideal location for grilling, entertaining, or relaxing.

   New decking products are available that are made of recycled materials. They cost a bit more, but will last forever and don’t produce splinters or need to be painted. And they are environmentally friendly.

ForeclosedHomes.com Sample Makeover Plans

Now we’ll show you four different options for strategically distributing a budget of $10,000-$20,000, to give you ideas of how you can get the most equity for your makeover money. Use these as inspiration and add your own imagination, to come up with a combination of approaches and discover the formula that works best for you and your particular home.

1. The Four Part Approach

Divide the money evenly:

      On a $10,000 budget:

      -   Kitchen       $5K

      -   Bathroom    $5K

      On a $20,000 budget, add these items:

      -   Paint     $5K

      -   Deck     $5K

      -   Or skip the deck, and put that $5K into the kitchen and/or bath.

2. Three’s a Charm

      -   Kitchen       $5k  - $8K

      -   Bathroom    $3k  - $7K

      -   Paint           $2k  - $5K

3. Two is Better Than One

      -   Kitchen       $5K  - $10K

      -   Bathroom    $5K  - $10K

4. One for the Road

To prep for a quicker sale at a better price, use the Four-Part Approach or either spend all of your money on the kitchen or add a half bath and you will gain maximum equity.

If you’re on a budget, forget the deck, give the house a fresh paint job, and replace any worn-out or dull looking appliances, flooring, or bathroom fixtures with the least expensive new ones you can find. Stick with neutral colors and go for a clean, well-groomed look instead of trying to get too creative or trendy.

5. Another Low-Budget Tip

Another trick many decorators and Realtors use to is to concentrate on making the entryway look like a million bucks. You can accomplish stunning results and dramatically improve the “curb appeal” (that’s real estate jargon for how the property looks from the perspective of browsers driving past) by spending a little energy and a small amount of cash on the entrance. Buy a fantastic looking door, install attractive entryway lighting, spruce up the walkway, and then watch as the cars slow down to admire your handywork.

Before you begin a makeover project, get bids from several reputable contractors and be sure to include the cost of materials. Check their references by looking at previous jobs and interviewing the homeowners yourself.

And to save money without compromising quality, shop around at sites like Bargain Network, to get the best price possible on any items you need to complete the job.