Yahoo Finance I’m a Real Estate Agent: This Is the Best $1,000 You Can Spend on Your Home
Homeownership can be expensive, but it’s also exciting. When you own your home, you’re free to make upgrades or other changes to your property — provided the money’s there and there aren’t any neighborhood or county restrictions.
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Whether you’re doing a minor renovation project — like replacing the shelving in your bedroom closet — or routine maintenance, costs can add up if you’re not prepared. So, if you’re interested in splurging a little on your home this year, it’s important to start with a balanced budget and a plan.
GOBankingRates spoke with two licensed real estate agents, Miriam Cruz from Ms. Cruz Realtor and Yosef Adde from I Buy LA, about the best $1,000 you can spend on your home this year. Here’s what they said and their advice on how to go about it.
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Spend Your Money on the Kitchen and Bathrooms
“If I were personally going to spend money to improve my home this year, I would focus on upgrading key areas such as the kitchen and bathrooms,” said Adde. “These rooms tend to have the highest return on investment and can significantly increase the value of a home.”
According to Adde, a full kitchen remodel can cost anywhere from $10,000 to $30,000. A bathroom remodel can cost $5,000 to $10,000 or so.
Since this is beyond the $1,000 budget, start by focusing on smaller upgrades instead. For example, you could upgrade the bathroom sink or replace the kitchen faucet. You could also splash a new coat of paint on the walls or stain the cabinetry to freshen it up.
Whatever the case may be, handling these projects yourself can cut down on costs since you won’t have to hire professional contractors. You will need to purchase the supplies — like paint and hardware — but if you plan for this, you can do a lot with $1,000.
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Upgrade Your Appliances and Lighting
If you have an older home and a relatively small budget, consider upgrading your appliances and lights to something more energy-efficient.
“I would consider energy-efficient improvements, such as installing solar panels or upgrading to energy-efficient appliances,” said Adde. “These not only add value to a home but also save on utility costs in the long run.”
You can get an energy-efficient washing machine, for example, for around $700 to $800 from places like Lowe’s and Best Buy. Energy-efficient light bulbs can vary widely in cost, but you could start by replacing your old ones first until you’ve maxed out your budget. At that point, you can always continue with upgrades in the coming years.
Prioritize Urgent Repairs or Maintenance Needs
Your budget can include specific upgrades, routine maintenance, and other improvements — but you should still prioritize based on what’s necessary.
“First and foremost, it is important to prioritize your expenses based on the current condition of your home. Are there any urgent repairs or upgrades that need to be addressed? If so, these should take precedence over other non-essential renovations,” said Adde. “You don’t want to spend money on cosmetic changes while ignoring underlying issues that could end up costing you more in the long run.”
Adde suggested making a list of any upgrades or improvements your home needs as this will help you identify your main focus areas and prioritize them accordingly.
“This could include anything from a kitchen remodel to landscaping or installing new flooring,” he said. “Once you have a list, research the costs associated with each project and determine which ones are feasible within your budget.”
Keep in mind that costs vary widely depending on where you live and the scale of the project.
Follow the 1% Rule
If you’re not sure how much money to set aside — but $1,000 seems too low — then follow the 1% rule to help with your budget.
“In terms of setting a budget, I suggest taking into account the current market value of your home,” said Adde. “As a general rule, it is recommended to allocate around 1% of the current market value for annual maintenance and upgrades. So, for example, if your home is worth $500,000, you may want to budget around $5,000 for home improvements this year.”
Cruz suggested setting a slightly higher annual budget for any home repairs or upgrades — anywhere from 1% to 3% of your home’s value. Your budget should change based on the age and condition of your home, however.
Example $1,000 Budget for Your Home
Cruz gave an example of how she’d go about spending around $1,000 on a home this year:
Clean your HVAC system. “Scheduling a professional HVAC inspection and tune-up, which typically costs around $100-$200, can ensure that the HVAC system operates properly,” she said. This will also prolong the system’s lifespan and add value to your home.
Get the gutters cleaned. “Hire a professional to clean your gutters to prevent water damage,” she said. “This inspection usually costs between $100-$200.” Costs depend on the size of your home, though.
Update the exterior caulking. Seal any gaps and cracks around the doors, windows, and garage. This will improve your home’s efficiency and prevent leaks and water damage. A tube of caulk only costs about $5 to $10.
Focus on the landscaping. “Invest in low-maintenance plants, mulch, flower beds, and trimming the shrubs or bushes,” Cruz said. “This will definitely enhance your home’s curb appeal.” Costs typically range from $100-$300.
Update the interior. “Give your interior walls a fresh coat of paint to update the look and feel of your home…The best colors to use inside the home are white, neutrals, and earthy tones. These colors help create a clean and neutral space that feels larger, warmer, and more Inviting.” Costs can range from about $200 to $500.
The total cost for all of these things adds up to $505 to $1,210. This gives you quite a bit of wriggle room.
If your budget allows, you can always make some additional changes or upgrades to your home. But if you’re approaching the higher end, you can cut back on the things that might not need as much work.
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: This Is the Best $1,000 You Can Spend on Your Home
