- Real Estate
Sarah Kuta
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Though plenty of homeowners would love to move right now, the real estate market feels like a complicated maze that’s nearly impossible to navigate. There still aren’t many homes on the market, prices are still up, and now interest rates are also on the rise.
These and other factors, like general economic uncertainty, are leading some homeowners to conclude that staying put just makes more sense than moving. And since they’re doubling down on their current home, many are opting to give their property a refresh.
“The benefits of renovating are that you aren’t taking on additional higher interest rate debt from a new mortgage, and the renovations add value to your home,” says Theo Haugen, vice president of customer experience for home ownership investment company Unison. “Plus, when the market softens, a renovated home will be more competitive compared to outdated homes, if you decide to sell.”
But, as anyone who’s ever tackled a big house project can attest, remodeling can also get expensive — fast. If you’re committed to staying in your house right now, rather than moving, here are some clever ways to save money on renovations.
Take Advantage of Creative Financing
Rising interest rates also affect home equity lines of credit (HELOC), home equity loans (HEL), and cash-out refinances, three popular tools that homeowners often use to finance major renovation work. But there are other options out there, too, and they may make more financial sense, depending on your situation.
One is an equity sharing agreement. Under these arrangements, you give an investment company a bit of ownership stake in your property in exchange for using some of the equity in your home — without a monthly payment or interest. When you sell your home, the investment company gets a share of the profit (or loss).
Unison, one of the companies that offers equity sharing agreements, has seen a big uptick in demand for these arrangements lately.
“Equity sharing agreements are even more attractive now since we have no monthly payments, and HELOCs, HELs, and cash-out refinances are only getting more expensive,” says Haugen. “On top of that, many people are worried about their home losing value, and traditional lending products don’t share in the risk with you. An equity sharing agreement shares in both the increase and decrease of value, so if your home loses value, you are much more protected.”
Refresh Your Kitchen Cabinets
Kitchen renovations are some of the most expensive home projects around, ranging from $13,386 to $38,329, on average, according to HomeAdvisor. But you can significantly dial back the spending by working with what you already have, including your cabinets.
With some elbow grease over the course of a few weekends, you can paint or re-stain them yourself. Or hire a professional to do the work for you, suggests New York-based real estate agent Ellen Sykes.
“Kitchens can come alive by removing the cabinet doors and taking them to an autobody shop for a glossy finish, then reinstalling them,” she says.
Give Dated Floors a Second Life
If your home is older, you may be stuck with a flooring material that doesn’t match today’s modern styles (or your own taste). But replacing flooring is another huge expense, so consider giving yours a second life with a DIY treatment.
“If you have parquet floors that might need replacing but won’t want to spend the money, there is an easier way to spiff them up for considerably less,” says Sykes. “Paint them black and then put polyurethane over them. You can go matte or glossy. The pattern of the parquet comes through, giving you fascinating flooring.”
Make Your Windows More Exciting
Can’t afford new window coverings? Buy a gallon of paint and go to town on the window frames, which will add a whole new dimension to the room without breaking the bank, Sykes says.
Do Energy-Efficient Upgrades
The best renovation projects are those that don’t cost a lot and help save you money in the long term, which is exactly why energy-efficient updates are so appealing.
“Upgrading lights to LED, fixing old knob-and-tube wiring, installing water-saving faucets, adding insulation, installing new windows, and putting in more efficient HVAC systems with room-specific temperature controls are just a few of the ways you can make your home more comfortable, increase the sale value, and reduce your monthly utility bills,” says Haugen.
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Renovating
