Big upgrades for tiny remodeling budgets

Not everyone has a fortune stashed away for a major home remodel. So smaller-scale projects, such as replacing windows, siding or a front door, are gaining in popularity among homeowners.

Compared with a full remodel, replacement projects cost less and can offer a better return on investment. This year, homeowners are recouping 67.6% of the cost of smaller-scale replacement projects during resale, according to Remodeling Magazine's annual Cost vs. Value report. Major remodeling projects, such as additions, are recouping 59.7%, on average.

Whether you want to make upgrades for your own enjoyment or you plan to sell your house soon, we've rounded up nine home-improvement projects that will give you the most bang for your buck for about $1,000 or less.

As you plan your project, keep in mind that many of the prices quoted here are national averages. The actual cost of any renovation will vary, based on the location of the home, the scope of the work, the quality of the materials and the experience of the contractor.

Caulk windows and weather-strip doorways

Caulking windows and applying weather stripping to exterior doorways will make your home more energy-efficient by sealing major sources of air leaks. This can help cut down your cooling bills during the summer and heating bills in winter.

Many homeowners tackle these tasks themselves. A DIY caulking job costs $50 including materials, such as a caulk gun and 12 caulk cartridges, according to DIYorNot.com, a website that provides cost projections for common home-improvement projects. If you aren't handy around the house, you can hire someone to do the work for $144, on average. That includes labor and materials.

Applying weather stripping and updating an exterior door's threshold yourself will cost $65; a professional can do it for $95 per door.

Install under-cabinet lighting in the kitchen

Adding under-cabinet lighting in your kitchen illuminates work surfaces —a plus for home cooks — and can make the space appear less dated — a plus for future buyers. Because there can be a bit of wiring involved to connect multiple fixtures, not to mention drilling holes in expensive cabinetry, you might want to leave this project to a pro. The average cost of hiring an electrician to install three 14-inch surface-mounted lighting fixtures that plug into an existing receptacle is $142, according to DIYorNot.com. A qualified pro can easily handle this project, as well, because no hard wiring is necessary inside the walls. The cost and complexity will be much higher if a receptacle must be added.

Update the kitchen-cabinet hardware

If you have a limited budget, a full-scale kitchen remodel is not an option, considering that a midrange renovation averages about $54,000. You can, however, make small tweaks to freshen up the space.

Updating the hardware on your kitchen cabinets and drawers is cost-friendly and doesn't require professional help, says Donna Shirey, owner of Shirey Handyman Service, a Seattle home-repair company.

As long as your cabinets are in good condition, swapping out dated hardware will give your cabinets an instant facelift.

"It'll cost you about $5 to $10 per handle, depending on the finish," Shirey says.

So if you have 25 cabinet-door and drawer handles in your kitchen that must be replaced, expect to pay as much as $250.

Add crown molding in the living room

Crown molding can bring a touch of luxury to a living room without a luxurious price tag. Having a carpenter install crown molding where the walls meet the ceiling in a 12-by-20-foot room costs about $330. That's the national average for 70 linear feet of installed finger-joint pine crown molding, according to DIYorNot.com. Adding a chair rail — molding attached to walls at roughly the height of a chair back — can also give a room a finished look says Neil Parsons, owner of Design Build Pros, a Toms River, N.J., remodeling firm. Parsons suggests painting the walls different shades above and below the chair-rail molding to make a room stand out.

Keep in mind, though, that molding should be added for your own aesthetic enjoyment rather than for resale value. If your remodeling budget is tight, focus your resources on the kitchen and bathrooms first.

Install a tile backsplash in the kitchen

Up the "wow" factor in your kitchen by adding a tile backsplash. Ceramic and porcelain tiles are the most popular tile finishes; however, ceramic tile costs less. At Home Depot, for example, you can buy ceramic tile for as little as $1.12 per square foot. Porcelain tile starts at $3.65 per square foot.

The average cost to hire a tile contractor to install a 10-foot-long, 12-inch-high ceramic-tile backsplash is $388. That includes about six hours' worth of labor and materials such as tiles, moisture-resistant adhesive and grout, according to DIYorNot.com. While a professional will almost certainly do a better job, skilled homeowners should be able to complete the project themselves for less money, says Paul Sullivan, founder and president of the Sullivan Co., a Newton, Mass., remodeling and custom-building firm.

Add or paint shutters

If you have a smaller home with no more than five to eight front windows without shutters, consider adding some to improve the curb appeal, Sullivan says. On a $1,000 budget, you'll likely only be able to afford vinyl shutters, which start at $21 per pair at Home Depot; wooden shutters start at $46 per pair. You'll spend the remainder of your $1,000 budget having a professional install them.

If you already have exterior shutters, and they're in good condition, apply a fresh coat of paint to give them new life. The cost of hiring a painter to update exterior shutters varies by location, but it can be less than $1,000, depending on the quality of the paint and other materials, such as primer. In Washington, D.C., for example, the average cost of painting 16 shutters for eight windows starts at $581.55, according to Homewyse.com, which offers cost projections for labor and materials. In Seattle, it'll run you $650.81.

Replace fixtures in the bathroom

Consider swapping the existing fixtures in your bathroom, such as the toilet, faucets and shower head, for high-efficiency versions, Sullivan says.

"Not only are you getting an updated look in your bathroom, but you'll also be saving money on your water bill," he says. Replacing an old toilet with an efficient model, for example, can save the average family $110 a year on water bills, the Environmental Protection Agency says.

At Home Depot, you can buy a WaterSense-rated, two-piece toilet for as little as $139. A high-efficiency faucet for the sink starts at $31.48, and a tub faucet and shower-head combo starts at $49.98.

Hiring a plumber to remove your old toilet and replace it with a new one will cost $459, on average, according to DIYorNot.com. Changing a single-control faucet on a bathroom sink costs $254, and replacing a shower head costs $155. Having all three completed at the same time adds as much as $868.

Apply a fresh coat of paint

Professional home-stagers recommend painting the interior a neutral color, such as taupe or cream, to make spaces feel larger. But a whole-house paint job is expensive. On average, a homeowner will spend $2,039 to hire someone to paint the entire interior of a house, according to HomeAdvisor.com, a renovation website.

To keep the project under $1,000, focus on the most visible areas, such as the entry, kitchen, main-level bathroom and family room or living room.

Painting is another project that many homeowners do themselves to cut costs. Remember to factor in the price of paint, primer, painters' tape, brushes and rollers when setting a budget. Costs can vary considerably by brand. A gallon of Benjamin Moore paint can cost two to three times more than a gallon of Behr, for example.

Replace the front door

This project is for homeowners who want the highest payback from a renovation when they eventually sell the house. According to Remodeling Magazine's Cost vs. Value report, replacing a front door with a new steel door will result in a nearly 86% return on the investment at resale. That's the best ROI for any projects in the report. Granted, the national average cost for a replacement steel entry door is $1,137, slightly above our budget, but we made an exception because homeowners are likely to recoup most of that expense.

Curious about the home-improvement project with the lowest return at resale? It's a home-office remodel, which recoups just 44% of the original cost.

By Andrea N. Browne of Kiplinger
Source: http://realestate.msn.com/big-upgrades-for-tiny-remodeling-budgets