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These Kitchen and Bathroom Renovations Will Add the Most Value to Your Home

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Faced with the daunting unknowns and potential complications of large-scale renovations, many people immediately turn away from buying a fixer-upper.

In fact, a recent study by Frontdoor reports that offers for fixer-uppers halved from 2022 to 2023. But the high risk can come with a high reward. Frontdoor found that on average, those who take the leap of renovating a fixer-upper earn a 27.5% return on their investment. And that’s on top of the personal benefits gained from designing a home to your taste. 

Of course, without the appropriate planning and strategy, budgets tend to spiral out of control and many find out the hard way that some renovations don't pay off. To find out which home improvements are really worth your time and money, Frontdoor’s data team used information from Zillow, such as square footage and price (in conjunction with Kukun’s home remodeling cost estimator) to determine the most profitable home renovations. The vast majority of these turned out to be in the kitchen and in the bathroom—two rooms that can be key to increasing the value of your home. Keep reading to find out which renovations came out on top.

Most Valuable Kitchen Renovations

Cabinets

The kitchen is the heart of any home, so it’s no surprise that kitchen cabinets make a big impression on a prospective buyer. Whether you reface existing cabinets or install new semi-custom ones, the average increase in property value from this renovation alone is 3.63%, which comes out to around $7,510. This is by far the most profitable home renovation for fixer uppers, according to Frontdoor's findings. 

Appliances

Replacing mid-market branded appliances with higher-end alternatives creates a more luxurious and efficient kitchen with little effort. Buying new appliances for your fixer upper is set to increase your market value by 2.35%, or $4,922. 

Counters

Counters serve an important functional purpose, and they're also often a focal point of a kitchen. According to Frontdoor, switching your counters to granite, quartz, marble, or porcelain materials can increase the price of your home by 1.81%.  

Faucet and Sink

Again, switching out mid-market sinks with higher end options can have a significant impact on the appearance and, therefore, the price of your home. This type of renovation on average increases the home's value by 1.12%. 

Lighting

After making a bunch of renovations, why not give them a spotlight with installing new ceiling lights over the counters or sink? Adding these types of lighting could give you a 1% boost on selling price. 

Backsplash

Similar to your counters, the backsplash of your kitchen is an eye-catching detail that needs some attention. Adding a granite, quartz, marble, or porcelain backsplash can add .42% value onto your property.

Most Valuable Bathroom Renovations

Shower and Tub Surround Panels

Though bathroom renovations typically add less value than those in the kitchen, they can still add a four figure sum. Shower and tub surround panels will contribute the most to bathroom renovations, with an increase of .92% or $2,300. 

Faucet, Sink, and Toilet

Replacing an average faucet, sink, and toilet with a higher end option transforms the appeal and comfort of your bathroom, adding .61% value and potentially saving you from an old-pipe-induced plumbing disaster. 

Cabinets

Whether you're redoing your original cabinets with higher end materials or installing completely new ones, upgrading your bathroom cabinets can add .45% to its value. New cabinets are also an easy way to change up the aesthetic of your bathroom by introducing wood or color.

Read more at RealSimple.com

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Good News for Homebuyers: Inflation Drops Below 3% for First Time in 3 Years

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Inflation in the U.S. continued to cool last month, signaling imminent relief to homebuyers in the form of lower mortgage rates.

In the 12 months through July, the consumer price index rose 2.9%, according to data released by the Department of Labor on Wednesday. It marked the first time annual inflation has dropped below 3% since March 2021.

On a monthly basis, overall prices ticked up 0.2% from June. That gain was driven almost entirely by rising housing costs, which are reported on a delayed basis. Energy costs were flat on the month, and food prices rose modestly, ticking up 0.2% from June and 2.2% from one year ago.

For prospective homebuyers, the overall cooling of inflation toward the Federal Reserve’s 2% target is good news for mortgage rates, which have already fallen in recent weeks. The central bank is now viewed as extremely likely to begin cutting its current benchmark rate of 5.3% when policymakers next meet in September.

“Today’s data has reassured markets that they will get a rate cut in September and December,” says Realtor.com® senior economist Ralph McLaughlin. “This should put downward pressure on mortgage rates this fall and winter and will set the stage for a much better season for homebuyers in 2025.”

Mortgage rates hit their lowest level in more than a year for the week ending on Aug. 8, with the average rate on a 30-year fixed dropping to 6.47%, according to Freddie Mac.

Typically, mortgage rates follow yields on the 10-year Treasury note, which move in response to investor expectations about inflation, the economy, and future Fed rate moves. Yields on the 10-year swung between slight gains and losses in choppy trading following the new inflation data on Wednesday morning.

The Realtor.com economic team now projects average mortgage rates will fall to 6.3% by the end of this year.

Housing costs are now the biggest driver of inflation figures

Rising shelter costs accounted for 90% of the overall monthly price increases reported from June to July—but there is a major caveat due to quirks in the way shelter costs are calculated.

Shelter accounts for more than a third of the overall consumer price index, but is reported on a delayed basis that can lag up to six months. Costs for homeowners are reported as “owner’s equivalent rent,” or the estimated cost to rent the homeowner’s primary residence.

It means that inflation data for shelter may primarily reflect changes in rental markets up to half a year ago, rather than real-time changes to actual monthly costs for homeowners, who account for two-thirds of the population.

 
 

"While shelter inflation is on a disinflationary path, it is a highly lagged input into CPI so its contributions don’t reflect the current slowdown we’re seeing in the housing market," says McLaughlin. "We anticipate that as the shelter pig works its way through the CPI python, we’ll continue to get better readings through the remainder of the year."

Some economists have argued that the way housing costs are calculated has artificially boosted inflation figures, potentially prompting the Fed to wait too long to cut its benchmark rate.

"Is it possible that the Fed is too late? Until this month, the Fed seems to have been laser-focused on inflation and progress toward the 2% target. But shelter has been an outsized contributor to the consumer price index," says Bright MLS Chief Economist Lisa Sturtevant. "As the Fed has kept rates high, those higher rates have exacerbated housing costs by dampening new housing construction and increasing borrowing costs."

Sturtevant notes that, with housing costs removed from the index, the CPI has averaged just 1.7% since May 2023.

"Even with a rate cut and subsequent declines in mortgage rates, there will be some hesitant homebuyers out there who have had their finances stretched thin and have reached their affordability ceilings. The drop in rates could be too little, too late,” she says.

Could the Fed implement an emergency rate cut?

Recent economic data, including a disappointing July jobs report that sparked fleeting panic in the stock market, has spurred speculation that the Fed could issue an "emergency" rate cut before its next scheduled meeting on Sept. 18.

However, emergency rate cuts are rare and typically come only during times of extreme economic emergency.

Since the turn of the century, there have been seven emergency cuts: three in 2001 in response to the dot-com crash and the terror attacks of 9/11, and two each in response to the Great Recession in 2008 and the COVID-19 pandemic in 2020.

Financial experts are skeptical that the Fed would take emergency action before September, unless the stock market crashes dramatically or key economic indicators take a sudden nosedive.

“The next few months remain critical, even without the emergency rate cut,” says Victor Kuznetsov, managing director of Imperial Fund in Miami. “So, while the Fed will not implement an emergency rate cut, it has signaled that it may consider a larger rate cut in the near future, possibly in September, depending on how the economy evolves over the next few months.”

Indeed, bond markets are now roughly evenly split on whether the Fed will cut rates by a quarter point in September, or issue a larger half-point rate cut, according to the CME FedWatch tool.

A larger rate cut in September would likely prompt a sharper downward move for mortgage rates, spurring both more buyers and sellers to enter the market.

Read more at Realtor.com

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The Great Wealth Transfer: A New Era of Opportunity

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In recent years, there’s been a significant shift in how wealth is distributed among generations. It’s called the Great Wealth Transfer.

Historically, the transfer of wealth from one generation to the next was a more gradual process, often limited to smaller amounts of inheritance or family savings. But today, the scale has increased in a big way. As a recent article from Bankrate says:

“The biggest wave of wealth in history is about to pass from Baby Boomers over the next 20 years, and it’s going to have major impacts on many facets of life. Called The Great Wealth Transfer, $84 trillion is poised to move from older Americans to Gen X and millennials. If it’s managed smartly, Americans will be able to grow their wealth and ensure their financial security.”

Basically, as more Baby Boomers retire, sell businesses, or downsize their homes, more substantial assets are being passed down to younger generations. And this creates a powerful ripple effect that’ll continue over the next few decades. The graph below uses data from Merrill and Cerulli Associates to give you an idea of how much inherited money is set to change hands through 2045:

 
 

Impact on the Housing Market

One of the most immediate effects of this wealth transfer is on the housing market. Home affordability has been a concern for many aspiring buyers, especially in high-demand areas. The increase in generational wealth is expected to ease some of these challenges by providing future homeowners with greater financial resources. As assets are passed down through generations, buyers may find themselves in a better position to afford homes. Merrill talks about that benefit in a recent article:

“While millennials face steep barriers . . . to buying a first home in many markets, ‘that’s a for-now story, not a forever story’ . . . The Great Wealth Transfer should enable more of them to become homeowners — or trade up or add a second home — either through inherited property or the funds for a down payment.”

Impact on the Economy

But the Great Wealth Transfer doesn’t just impact housing. It’s also going to provide a new avenue for entrepreneurial spirits to fuel economic growth. If someone is looking to start a business and they’re receiving funds like this, that money can used as the necessary capital to start a new company. This helps the next generation of innovators and business owners bring their ideas to life.

Bottom Line

While affordability remains a challenge in today’s housing market, the ongoing Great Wealth Transfer is poised to unlock new opportunities. As wealth is passed down and put to use, it’s expected to ease some of the barriers to homeownership and fuel other entrepreneurial endeavors. 

Read more at KeepingCurrentMatters.com

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August Tasks to Wrap Up Summer

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The dog days of summer are barking and Labor Day is just around the bend, signaling the end of yet another epic season in the sun.

But before you give your flamingo pool float one last hurrah, take a break with some home maintenance prep for the changing season ahead.

We know what you’re thinking: It’s still summer, and you’re being a buzzkill! Why worry now about what you can do next month? Well, as it turns out, some home maintenance tasks are best tackled in August, before temperatures start dipping.

Don’t worry: We’re here to make all those chores as quick and easy on you as possible. With our handy checklist of home maintenance tasks, you can knock ’em out and be back to your barbecues and beach days in no time.

Check washing machine

With the kids home from school and loads of sweaty garments to clean, your washing machine has likely taken a major beating this summer. With all that extra use, be sure to check that the water supply hoses which connect to your machine are in good condition.

“If they are older black rubber hoses, check for any bulging in the hose or any parts that look worn,” says Tony Dunaway of BEST Plumbing of Cincinnati.

DIY: If you have worn hoses, you can swap them out with replacements for as little as $25, but it’ll take you some effort. After you’ve turned off the water supply to the hoses, use adjustable pliers to loosen one hose at a time from the water supply, and then from the washing machine. You’ll also need to make sure your new hose has a rubber washer in each end. If your hoses are made of rubber, consider upgrading and replacing them with rupture-proof, braided stainless-steel hoses.

Call in the pros: A pro will save you the effort, but you’ll shell out around $150 for the job. How much are your days in the summer sun worth to you, anyhow?

Prune dead wood

Now’s the time to tidy up your perennials and clear those unsightly dead twigs and branches, according to Tony Smith, president of Nursery Enterprises in Rexburg, ID.

Not only will you have a more attractive yard, but “by cleaning them out this summer, you’ll create a clean slate—and next summer you’ll have a better grasp in understanding your plants’ health.” Smith says.

DIY: You’ll need pruners, a saw, and loppers (or a chain saw) to really attack this job.

Call in the pros: If the mere thought of wielding a chain saw gives you the heebie-jeebies, call in a professional landscape company to do the deed. The cost depends, of course, on the extent of the work and the size of your yard, but expect to pay at least $400 to $1,300 for a reputable, licensed tree trimmer.

Clear gutters

Summer thunderstorms can clog your gutters and lead to costly water damage down the road. Properly functioning gutters direct water away from your home, but muck and debris can cause water to collect around your home’s foundation and seep into your basement, if you have one. (Clogged gutters also make great homes for rodents and other vermin, just in case you needed another reason to tackle this task.)

DIY: Grab a ladder and shimmy up to the roof to inspect your gutters and drains, taking care to wear proper hand and eye protection. A simple garden trowel is effective for clearing most debris.

Call in the pros: Scared of heights? The average gutter job will run you up to $225..

Deal with insects

Wasp activity peaks in late summer; these insects become more aggressive and likely to sting in, you guessed it, August. So you’ll want to spray for wasps and eliminate them, pronto.

DIY: “The first step to eliminating a wasp nest is to identify where the colony lives,” says Dave Patterson, owner of Tactix Pest Control in Boise, ID. “Scan your lawn, looking for activity close to the ground. Once you find where the wasps are coming and going, apply wasp treatment to the entrance. Repeat this step every few days until you no longer see any activity.”

Patterson also recommends patrolling your property for stagnant water, which can be a breeding ground for mosquitoes.

“First, drain any areas that are holding water—this step alone should significantly cut down on mosquito activity,” he says. This means birdbaths, planters, or any other places where rainfall might have accumulated. “For further prevention, invest in forms of mosquito repellant like citronella candles, mosquito traps, and bug zappers.”

Finally, check the seals around your home, including doors, windows, and dryer vents. Caulk or expanding sealants should be more than enough to seal most openings, according to Patterson.

Call in the pros: The national average cost of wasp removal ranges between $100 and $1,300. The cost of mosquito control depends on a variety of factors, including property size and treatment frequency. An entire summer of mosquito treatment could run $500 or more, but you’re more likely to get a deal now that it’s later in the season.

Clean your natural stone

Clean natural stone around your home to prevent food, dirt, and oil stains from setting in.

“After a summer filled with nonstop grilling fests, family gatherings, and just general outdoor fun and wear and tear, it’s important to properly clean natural stone around your home—whether it’s outdoor granite countertops, stone walkways, or patios—to prevent food, dirt, and oil stains from setting in and leaving permanent marks,” says James Freeman, chief operating officer of Colonial Marble & Granite.

DIY: Start by dusting off stone surfaces, because abrasive materials such as dirt or sand (carried home from weekend getaways) can cause damage. Avoid using harsh cleaning products on natural stone; instead, choose a gentle cleanser with a neutral pH (preferably without soap, which causes streaks and film) and a soft cloth. For a longer-lasting finish and better protection against stains and grime, consider applying a water-based penetrating sealer.

Call in the pros: For serious stains, call in a professional stone maintenance company to restore your stone. Expect to spend anywhere between $400 and $1,200, depending on the level of grime.

Get your furnace prepped

“When residential furnaces fail, they typically do so during the coldest days of the year, which is why it’s important to have these systems inspected in August, before temperatures drop,” says Michael Petri, owner of Petri Plumbing & Heating, in New York City. “An annual tuneup and inspection can help homeowners save money, maintain comfort, and ensure safety when units are turned on for the first time in several months.”

Call in the pros: There’s no shortcut for this one; maintaining your furnace is something you’ll want to defer to a pro. Typically, HVAC companies run prewinter specials for this kind of work, so keep your eyes peeled for deals—but expect to spend between $130 and $500.

Read more at Realtor.com

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Back-to-school supplies for students of any age: Parents, consult this list

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As the summer winds down, you can practically smell the return to school in the air. 

Back-to-school sales dominate targeted ads and passing billboards, and families are cramming in as much vacation and ice cream time as they can. It’s just about time to stock up on pencils and new sneakers, and to do it best you'll want to look for deals while looking for school supply reviews, too.

Whether you're the parent of a student or a student yourself, here’s your guide to back-to-school shopping supplies and dates to know.

Must-have back-to-school supplies

Back-to-school supplies vary from classroom to classroom, from teacher to teacher. If your child is in elementary or middle school, they may have received an itemized classroom supply list from their new teacher. Specific lists often can be found on school district or teacher websites. Take note of the words "requested" and "required" – some pricey items may be a suggestion or donation to the classroom.

But if you don't have a list and want to get things ready for the big day, here’s a general guide of what you'll need according to tutoring agency Oxford Learning.

Back-to-school supplies for elementary students:

  • 1 pocket folder per subject

  • Agenda (some classrooms issue school-specific agendas)

  • Loose-leaf ruled paper or notebook

  • Loose-leaf blank paper

  • Pencils

  • 2 erasers

  • Ruler

  • Pencil sharpener (metal ones, even small ones, will last longer if kids can hold onto them)

  • Box of crayons

  • Colored pencils

  • Washable markers

  • Bottle of glue

  • 2 glue sticks

  • Safety scissors

  • Backpack

  • Pencil box or bag for supplies

Your child’s teacher may also request classroom supplies like disinfectant wipes, hand sanitizer or tissues. When in doubt, send a quick email to their new teacher ahead of the first day of school.

Back-to-school supplies for middle school students:

  • 1 binder per subject or a couple of large-sized binders

  • Binder dividers

  • 1 pocket folder per subject

  • Sticky notes

  • Agenda (some classrooms issue school-specific agendas)

  • Combination lock for lockers

  • Loose-leaf ruled paper and/or notebook

  • Loose-leaf graph paper or notebook

  • Mini stapler

  • Highlighters

  • Blue or black pens

  • Pencils

  • 2 erasers

  • Ruler

  • Pencil sharpener

  • Reinforcements (for placing loose-leaf paper in binders)

  • Colored pencils

Your teacher may also ask for some specific supplies depending on the type of work you’re doing, like USB drives, calculators or a compass and protractor. Check in with your teacher before school starts if you’re not sure what to buy.

Back-to-school supplies for high school students:

  • 1 binder per subject or a couple of large-sized binders

  • Binder dividers

  • 1 pocket folder per subject

  • Sticky notes

  • Agenda

  • Combination lock for locker

  • Loose-leaf ruled paper or notebooks (one per subject)

  • Loose-leaf graph paper or notebooks

  • Highlighters

  • Blue or black pens

  • Pencils

  • 2 erasers

  • Ruler

  • Pencil sharpener

  • Reinforcements (for placing loose-leaf paper in binders)

How to shop for back-to-school supplies

Take a deep breath – we know this is an overwhelming time for parents. Take it step by step.

1. Consult the list

Run through the required supplies and contact your child’s teacher if you have questions or don’t see something you think will be important. If you have a little extra in your budget, ask your child's new teacher if they need help supplying their classroom. Most teachers dip into their wallets to decorate and equip their rooms, so they'll appreciate the help.

2. Search for deals

School supplies can be expensive. The National Retail Federation estimated American households would spend nearly $900 in the 2023 back-to-school season.

Some places help people get free school supplies and offer deals. Some states offer school supply sales-tax holidays through July and August. You can also check with your school or community, which may keep donated supplies on hand.

Decide if you want to shop in person at major retailers or avoid the lines entirely by shopping online. Check out these discounts from Amazon, Target, Walmart and Staples.

If you’re in the market for a new back-to-school wardrobe or are purchasing big this school year, here’s a list of the best student and teacher discounts.

3. Plan ahead

After you’ve shopped your way down the list, the next best thing to do is be prepared. Game plan go-to healthy school lunches and after-school snacks for the weekly rotation. Make sure to pack your backpack or child’s backpack ahead of time so you’re not scrambling on the first day. We've also got tips for how to clean your kid's backpack, which is probably pretty gross.

When does school start in 2024?

It depends on the region, though most U.S. students will typically return to school between August and early September. In 2023, a Pew Research study took a random sample of over 1,500 public school districts and found that the highest percentage of students returned to school in the second and third week of August – 23% during the week of August 7 and 24% the week of August 14.

However, it varies heavily by region, Pew Research reports. Southern regions often start school later than northern ones, and New England states are more likely to go back the last week of August or after Labor Day, which is September 2 this year.

Read more at USAToday.com

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