After years of decline, it appears that Columbia SC home renovations are on the upswing again. If you're planning a Columbia SC home renovations project of your own, be sure to use an often neglected tool in your planning – a budget!
Establishing a Columbia SC home renovations budget cap and looking for painless ways to reduce your overall cost will stop you from spending more than you can hope to recoup when it's time to sell your home one day.
To figure out what's safe to spend, you'll need to determine how much of your home's value is represented by the room you're planning to redo.
Budgeting Your Columbia SC Home Renovations Project
In general, your kitchen accounts for 10% to 15% of your property's value; bathrooms, 5% to 10%; half-baths, 5%, and a finished basement or attic, 10% to 15%. To calculate your budget cap, multiply that percentage by your property value. So if you're planning, say, a major kitchen renovation on a $400,000 home, you wouldn't want to spend more than $60,000. Of course, budget to spend less than the calculation if that's more than you can afford.
When remodeling existing space, you can trim your costs by minimizing changes to the footprint. Any wall you don't move or remove will save $3,000 to $5,000. Ask your contractor if it's possible to avoid stripping open the walls and ceilings. That could save you another $2,000 to $5,000, even after workers make some temporary holes to snake in new wiring and pipes.
Putting new bathroom or kitchen plumbing fixtures and appliances in the same spot their predecessors were located could slash your project cost by $2,000 to $3,000 because the existing pipes and electrical lines can be reused.
Homeowners doing their own Columbia SC home renovations often tackle things like painting themselves. Doing so can save you up to $1000 per room. If you really want to save, consider doing your own demolition as well. As long as you can do the job correctly and safely, pulling out appliances, plumbing fixtures, cabinets, and tiles could save you $2,000 to $5,000 or more.
If doing a kitchen remodel, look for scratch and dent sales where you might pick up a new appliance with low visibility damage that could save you some serious dollars per appliance. Countertops are another area where you can either save, or spend through the nose. For example, choosing a simple squared-off edge profile (called "eased") rather than a more complex pattern could save $500 to $1,000.
These are just a few of the many ways you could save some dollars on the budget of your Columbia SC home renovations project. For more home improvement tips, visit our Columbia SC Home Improvements section under Columbia SC Real Estate Categories to your right for more articles and information.
Everyone who owns a Columbia SC home must face routine maintenance, such as replacing worn-out plumbing components or staining a deck, but some choose to make improvements with the intention of increasing the home's value.
Certain projects, such as adding a well thought-out family room – or other functional space – can be a wise investment, as they do add to the value of your Columbia SC home. Other projects, however, allow little if any opportunity to recover the costs when it's time to sell.
Things You Think Add Value To Your Columbia SC Home, But Really Don't
Swimming Pool
A swimming pool is one of those things that may be nice to enjoy at your friend's or neighbor's house, but can be a hassle to have at your own Columbia SC home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Families with young children in particular may turn down an otherwise perfect house because of the pool (and the fear of a child going in the pool unsupervised). In fact, a would-be buyer's offer may be contingent on the home seller dismantling an above ground pool or filling in an in-ground pool.
An in-ground pool costs anywhere from $10,000 to more than $100,000, and additional yearly maintenance expenses need to be considered. That's a significant amount of money that might never be recouped if and when the house is sold.
High-End Upgrades
Installing stainless steel appliances in your kitchen or imported tiles in your entryway may do little to increase the value of your Columbia SC home if the bathrooms are still vinyl-flooring and the shag carpeting in the master bedroom is leftover from the '60s. Upgrades should be consistent to maintain a similar style and quality throughout the home. A remodel might not fetch as high a return if the rest of the home is not brought up to the same level. High-quality upgrades generally increase the value of high-end homes, but not necessarily mid-range houses where the upgrade may be inconsistent with the rest of the house.
Wall-to-Wall Carpet
Potential homebuyers today often cringe at the idea of having wall-to-wall carpeting. Carpeting is expensive to purchase and install. In addition, there is growing concern over the healthfulness of carpeting due to the amount of chemicals used in its processing and the potential for allergens (a serious concern for families with children). Add to that the probability that the carpet style and color you thought was absolutely perfect might not be what someone else had in mind.
Overbuilding for the Neighborhood
Homeowners often make improvements to their property that unintentionally makes the home fall outside of the norm for the neighborhood. While a large, expensive remodel, such as adding a second story with two bedrooms and a full bath, might make your Columbia SC home more appealing, it will not add significantly to the resale value if the house is in the midst of a neighborhood of small, one-story homes.
Homebuyers don't want to pay $450,000 for a house in a neighborhood with an average sales price of $250,000; the house will seem overpriced even if it is more desirable than the surrounding homes. The buyers will instead look to spend the $450,000 in a $450,000 neighborhood. Your house with all its improvements might be beautiful, but any money spent on overbuilding might be difficult to recover unless the other homes in the neighborhood are pretty much the same.
Extensive Landscaping
Columbia SC home buyers may appreciate well-maintained or mature landscaping, but don't expect the home's value to increase because of it. A beautiful yard may encourage potential buyers to take a closer look at the property, but will probably not add to the selling price. If a buyer is unable or unwilling to put in the effort to maintain a garden, it will quickly become an eyesore, or the new homeowner might need to pay a qualified gardener to take charge. Either way, many buyers view elaborate landscaping as a burden (even though it might be attractive) and, as a result, are not likely to consider it when placing value on the home.
The Bottom Line
It's hard to imagine spending thousands of dollars on a home-improvement project that will not be reflected in the home's value when it comes time to sell. There is no simple equation for figuring out which projects will bring the highest return, or the most bang for your buck. Some of this depends on the local market and even the age and style of the house.
Homeowners frequently must choose between an improvement they would really love to have (the in-ground swimming pool) and one that would prove to be a better investment. A bit of research, or the advice of a qualified real estate appraiser, can help homeowners avoid costly projects that don't really add value to your Columbia SC home.
If you're thinking of doing some Columbia SC home improvements, depending on the level of the improvements, you may need to consider hiring a contractor to do the job. There are several steps we recommend when looking for contractors.
Columbia SC Home Improvements – Finding the Right Contractor
It may seem a bit ridiculous to even mention this, but you need to know exactly what you want to have done. The more information you have available for the contractors, the better. Only by knowing specifically (down to the last detail) what you want to have done will you be able to compare bids from different contractors for the same work.
If you're getting a bid from one contractor, then have a second or third contractor bid something different, even slightly, then you're not going to know who really offers the best price on your Columbia SC home improvements.
Columbia SC Home Improvements – Forget the Yellow Pages
Try to get personal referrals, rather than relying on the phone book. If you have a friend or a relative who had some work done on their home they were pleased with, that's a great starting point. You can get some honest feedback about the contractor's skill level, price, scheduling, level of cooperation, and much more. There are a lot of contractors out there to choose from, and, like most businesses, they succeed or fail mostly by their reputation, so a good referral is very helpful.
If you see some work going on down the street, stop and talk to the homeowner. Most people are more than willing to share their experiences — good and bad — about the contractor they've hired, and here again you can get some great firsthand information.
If you're planning some Columbia SC home improvements, some other good sources of referrals include real estate agents, insurance agents, property managers, your utility company, and your local building department.
Detail Your Columbia SC Home Improvements In Writing
Have a written contract that describes all the details of your agreement with the contractor, including materials to be used, a description of what's to be done, beginning and completion dates, price, and a payment schedule. Never pay in full upfront, even if you're offered a discount. Make a reasonable down payment if it's requested, typically no more than 20 percent, then make payments as the job progresses. The payments should be tied to specific completions, such as completion of frame inspection, completion of final inspection, or something else that you can easily verify.
We have other tips and articles about Columbia SC home improvements under our Columbia SC Real Estate Categories to your right.
With Spring just around the corner, Columbia SC landscaping ideas are starting to bloom in everyone’s minds again.
Now is the perfect time for a thorough spring cleaning, but not just the attic or garage or getting rid of old clothes. The outside of your home is in just as much need of some annual care as the inside, but no more so than the yard or garden.
Winter can wreck havoc on a yard or garden and your Columbia SC landscaping is now in need of some Spring revival. Here are some basic tips for turning your yard into a spring showcase.
Columbia SC Landscaping Project Tips
Clear Away the Debris
Set aside a day to just clean away the winter debris that has collected in your Columbia SC landscaping. Once you’ve cleaned away the leaves and broken limbs that are lying around you’ll be ready to get the weeds that sprouted during the winter. Once all this is done, spending 10-20 minutes each week pulling weeds and spraying weed killer should help you maintain a weed-free yard.
Fertilize
If you want to ensure that your Columbia SC landscaping thrives, you’re going to have to include fertilizer. Not just for the grass, but everything. Grass, flowers and shrubs. Nothing says this step has to be complicated. There are a number of different fertilizers available from home-supply stores geared for a number of different purposes and a number of lawn and garden types. Turf Builder is a popular option for those who want to give their lawns a fighting chance to thrive. Plus, there are organic weed killers on the market that can make the aforementioned weed hunting a breeze.
If you’re growing food, like herbs, fruits and vegetables, make sure you use only organic fertilizers containing no pesticides.
Mulch
A fresh layer of mulch around plants, bushes and trees can go a long way to enhancing the beauty and tidiness of your Columbia SC landscaping. Professional landscapers suggest applying four inches of mulch over the top soil, which will help retain moisture and prevent growth of those pesky weeds.
Irrigation
Whether you’re working with a complex in-ground sprinkler system or a simple garden hose, it’s best to test the equipment now. If you have a sprinkler system, make sure the system is working properly before you actually need it. Check all the sprinkler heads for cracking and breakage since last year. Clear away grass and weeds that may have covered part or all of the pop-up heads to make sure they can actually pop-up when called for.
If you use the old-fashioned water hose system, check your hose and fittings for leaks and cracks now. When you need to pull out the hose to use it the first time is not the time you want to have to stop and head to the hardware store for replacements.
By following these simple tips for your Columbia SC landscaping this spring, even those without a green thumb should be able to revive a yard on the brink of winter extinction.
If you’re selling your Columbia SC home after you’ve made substantial improvements, known as capital improvements, the money you spent on those improvements could help lower your tax bill when you sell.
Tax rules let you add capital improvement expenses to the cost basis of your Columbia SC home. Why is that a big deal? Because a higher cost basis lowers the total profit, or capital gain, in IRS-speak—you’re required to pay taxes on.
The tax break doesn’t affect everyone. Most home owners are exempted from paying taxes on the first $250,000 of profit for single filers ($500,000 for joint filers). If you move frequently, maybe it’s not worth the effort to keep up with your capital improvement expenses. But if you plan to live in your house a long time or make lots of upgrades, saving receipts is a smart move.
How Improvements Can Affect Your Columbia SC Home Cost Basis
To figure out how improvements affect your tax bill, you first have to know your cost basis. The cost basis is the amount of money you spent to buy or build your Columbia SC home including all the costs you paid at the closing: fees to lawyers, survey charges, transfer taxes, and home inspection, to name just a few. You should be able to find all those costs on the settlement statement you received at your closing, also known as your HUD-1 Statement.
Next, you need to account for any subsequent capital improvements you made to your Columbia SC home. Let’s say you bought your home for $300,000 including all closing costs. That’s the initial cost basis. You then spent $25,000 to remodel your kitchen. Add those together and you get an adjusted cost basis of $325,000.
If you lived in your home as your main residence for at least two out of the last five years, any profit you make on the sale will be taxed as a long-term capital gain. You sell your Columbia SC home for $575,000. That means you have a capital gain of $250,000 (the $575,000 sale price minus the $325,000 cost basis). You’re single, so you get an automatic exemption for the $250,000 profit. End of story.
Had you not factored in the money you spent on the kitchen remodel, you’d be facing a tax bill for that $25,000 gain that exceeded the automatic exemption. By keeping receipts and adjusting your basis, you saved about $5,000 in taxes based on the 15% tax rate on capital gains. Well worth taking an hour a month to organize your home-improvement receipts, wouldn’t you say?
This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.