Don’t we all remember the good ole days? Back when we had crazy equity in our homes and could call on a lender to refinance to get much needed funds for home repair and upgrades. In fact, we could almost count on going back to get even more cash from our homes a few years later.
Then the bubble burst in our faces.
Not only can you not expect to have the equity of yesterday, you might also NOT get the immediate payoff from the improvements – in terms of resale value. Remember, home sales are stagnant. You could fall prey to over-improving relative to market demand.
Where in 2004, you could possibly get back $30,000 in value for the $35,000 spent on kitchen remodeling. Today, in a depressed market, that $35,000 kitchen might bring a mere $20,000 in additional value. It just depends.
For sure, doing budget-conscious remodeling projects will make sense for many homeowners.
To really stay on budget, take on fix-up projects around your home. If funds are tight, you owe to yourself to try bartering for services. I believe we all have a talent or skill we can trade for something else. Let’s say you need lawnwork done. What if you make a trade for services where you provide computer services in return? Or perhaps you have a skill in video production where you offer to do marketing promotion work in exchange. The possibilities are endless.
Go to this site for more info about bartering. You can trade just about anything. No fees. Recently mentioned on ABC News.
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