Maintaining and protecting your home: from insurance to landscaping, caring for your house will increase its value - B.E. Guide To Homeownership—Part 3

Black Enterprise, Sept, 2003 by Donald Jay Korn

SINCE PURCHASING THEIR HOME TWO YEARS AGO, CORA AND Cary Johnson have done close to $10,000 worth of property improvements that have increased the value of their home by $100,000. "We paid $275,000 [for our home], and recently we were offered $376,000," says Cora.

The Johnsons, both 38, are beneficiaries of a recent surge in southern California property values, and the work they've put into their house has given it added value.

"We had the backyard landscaped and we installed indoor ceiling sprinklers and a security system with monitors on all the doors, as well as sensors throughout the house," says Cora of her Inglewood, California, home. "This system is connected to a central station, which will call the police in case of an emergency. I wouldn't stay in a house without a security system."

Other enhancements include new kitchen cabinets, tile flooring, renovated bathrooms, and a paint job. "We have tried to keep our house in good condition by checking on things such as the roof and the electrical system," says Cora. "That's what you need to do in order to maintain your investment."

Indeed, if you're a homeowner, your house is a major investment. Failure to "mend your fences" can cost you money and lifestyle comforts. Paying attention to the home front can produce precious property value appreciation. Once you've made the investment in a new home or decided to do improvements on your existing property, you can protect it and increase its value by doing the following:

* Add value with additions. One way to increase your home's re-sale price is by making major improvements. It's important to remember that some projects will increase in value more than others. According to Remodeling magazine's latest cost-versus-value report, bathroom improvements tend to rate the highest, in terms of payback.

However, "it's the quality of the home improvements, not the category, that add the most value," says Roderick McDaniel, a real estate broker and co-founder of Huntingron Browne Real Estate in Inglewood. "Cora and Cary Johnson, for example, used high-quality, long-lasting tiles and durable fixtures. These features make their home stand out." Similar upgrades could include light fixtures, doorknobs, and faucets with nontarnishing warranties.

Buyers are a lot smarter today, says McDaniel. "People know what they should look for when they shop for a home," he says. "It pays to go for top quality with home improvements because your own lifestyle will be enhanced while you're in the house, and the re-sale value will also increase."

McDaniel says built-in additions are preferable to anything movable, which should be taken into consideration when adding bookshelves, benches, or a home theater system. An exception: "Don't put bars on your windows," he advises, "because that may detract from a home's value. Instead, install a sophisticated home security system."

* Count on curb appeal. Your home's exterior should create a desire to own the home, which is why it's vital to schedule regular paint jobs and keep up on yard work. Edging your lawn, mulching, and planting some shrubs are all worthwhile activities. "The Johnsons put the most expensive year-round grass in the yard," McDaniel says, "which now looks great. Installing a new garage door also helped to make their house more attractive."

* Hire quality workers. If you have to hire a contractor for your home improvements, it's best to get a referral from friends or family. "I work for the building and safety department of the city of Los Angeles," says Cora, "so I asked my friends there for leads. They knew contractors who have been hired frequently, and they gave me leads to reliable workers. It has worked out very well."

McDaniel says the buildings department in your local community may supply leads to contractors, but you should also look at the work they've done. The general contractor will be your key hire because he or she most likely will hire subcontractors, such as electricians, to help with the work. "You'll want to make sure the general contractor pulls all the required permits on your job," says McDaniel, "otherwise, a follow-up appraisal won't reflect the value you've put into the job."

* Take care of your investment. If you make major improvements to your home, you must provide routine care. In terms of maintenance, McDaniel says you need to make sure your plumbing, electrical system, and roof are in excellent condition. "Everything else can wait. Once those basics are in place, you can move onto other projects, such as stripping and refinishing your hardwood floors."

Of course, taking care of plumbing may be easier said than done. "I'd have leaks every time it rained," says Johnnie Mae Atkins, a hospital technician in St. Louis. "I kept calling plumbers every two months. It was very expensive and nothing really got accomplished."

Fortunately, Atkins, 40, qualified for assistance from Beyond Housing/Neighborhood Housing Services, a local affiliate of the National Insurance Task Force (NITF) that offers affordable insurance coverage to low-income and minority homeowners through a loss prevention program. Atkins received counseling and a forgivable loan of $10,000 for much-needed home repairs (If she stays in her home five years after improvements are made, she owes nothing). "Not only did they discover the problem with my plumbing and install a new drain to help, they also installed a new roof and upgraded my electrical system," she says. "That work definitely increased the value of my home."