Sometimes, a simple paint upgrade is all it takes to freshen up a space in your home and increase its value. “You could paint your front door, add new house numbers, buy a new doormat, and even replace your mailbox if yours is outdated,” says Tyler Forte, CEO of Felix Homes, an online home buying and selling platform. Of course, envisioning home renovations can be exciting, but you have to figure out how to fund them, too. Whether you have money saved or are looking to take a loan, here are expert tips on how to find funding for your home upgrades and prioritize according to your budget. “Anything that gives your house more curb appeal can really boost its value—and help you enjoy your home more while you’re living there,” says Sarah Feezor, a real estate agent with Dream Town Realty in Chicago. Buyers searching online might scroll past a listing with peeling paint or a dilapidated porch before looking at interior photos. In fact, the 2021 Cost vs. Value Report by Hanley Wood, a residential data provider, found that curb-appeal projects, including changes to siding, doors, and windows had an average payback of 68 percent, compared with about 55 percent for interior upgrades such as a midrange primary suite addition. Inside, kitchen and bathroom renos get the most return on investment. Even so, you’ll want your spending to be compatible with the house’s total worth—a $90,000 kitchen remodel doesn’t make much sense for a $200,000 property. “One of the worst things people can do is over-improve their homes,” says Feezor. “If the upgrade means you’re now the best house on the block, you’re never going to get as much of your money back when you sell.” Checking out comparable listings in your area can help you keep pace with—but not exceed—the local market. A good rule of thumb is to pad contractor estimates by 10 percent. With a DIY project, pad the estimate by 20 to 30 percent, because hiccups happen—especially when you’re not a pro. For city-by-city estimates on typical costs, use this Real Remodeling Costs tool by Houzz. “Store credit cards tend to offer less flexibility, but if you know you’re going to always shop there, they do have perks, like special promotions and higher cash-back rewards on purchases,” says Kimberly Palmer, a credit card expert at NerdWallet. Just make the minimum payment each month and pay off the balance in full before the promotional period is over, or you’ll wind up spending a pretty penny for that new patio. But the interest rate is variable, which could burn you if it climbs while you’re in payback mode. If you prefer the security of a fixed rate, choose a home equity loan. You get a lump sum and pay interest on the entire amount until it’s paid back. Run the numbers carefully before borrowing, says Margulis: “Sometimes moving makes more sense, and sometimes staying put—minus the renovation—is the smarter choice.”
