Top six home renovations that maximize your return on investment

By Dave Stritch
Maine Home Maintenance

Home renovations can feel overwhelming, but they are also a smart way to invest in your property. Whether you plan to sell your home soon or just want to improve your living space, certain renovations can provide a better return on investment (ROI) than others.

Maine Home Maintenance is owned and operated by Chris
Lawlor, right, and Dave Stritch. Together they have more
than 30 years of experience in carpentry and home
remodeling.  SUBMITTED PHOTO  

This article will highlight six key renovations that can significantly boost your home’s value and help you make wise choices for your improvements.

1. Kitchen Remodel

The kitchen often serves as the centerpiece of a home. A thoughtful remodel can greatly enhance your property’s value. Upgrading appliances, installing new cabinets, and choosing appealing countertops can create a space that is both stylish and functional.

For a minor kitchen remodel, which includes simple updates like new fixtures and finishes, homeowners can expect to see an ROI of about 80%. If you decide on a major remodel, prioritize high-quality materials and energy-efficient appliances to attract prospective buyers. For instance, installing Energy Star-rated appliances can lower energy bills, making your home more appealing to eco-conscious buyers.

2. Bathroom Addition

A bathroom addition can significantly enhance the value of your home. Aside from adding convenience, this upgrade often yields a return on investment of about 60 to 70 percent. This is especially beneficial for homes that currently have just one bathroom, where an extra bathroom can greatly improve functionality.

When planning your bathroom addition, pay attention to the layout to ensure it fits well with the existing home design. Installing high-quality fixtures and even small details like chic tiles can create a luxurious feel that potential buyers will appreciate.

3. Curb Appeal Enhancements

The outside of your home leaves a lasting first impression. Simple curb appeal upgrades can have a big impact on your home's overall value. Improvements like well-maintained landscaping, a fresh coat of paint on your front door, or strategic outdoor lighting can make your home look more inviting. Investing in curb appeal can yield a remarkable ROI of up to 100 percent. Focus on low-maintenance plants and a tidy entryway to create an inviting atmosphere.

4. Deck Addition

Outdoor spaces are highly desirable to homebuyers today. Adding a deck can provide a substantial return on investment, often yielding around 70 to 80 percent. A well-designed wooden deck not only adds usable space but also enhances your home’s aesthetic.

When planning your deck, consider both the size and materials you will use. A spacious deck that matches your home’s style can create a perfect area for entertaining, thus attracting more buyers.

5. Energy-Efficient Upgrades

In a world of rising energy costs, energy-efficient home upgrades are increasingly valuable. Replacing old windows, insulating your home or installing energy-efficient heating and cooling systems can significantly lower your utility bills while boosting your home's market value.

These upgrades typically offer an ROI of about 70 to 90 percent, depending on what you choose to upgrade. Prioritize solutions like double-pane windows and smart thermostats, which appeal to buyers looking to save on energy costs.

6. Basement Finishing

Transforming an unfinished basement into a usable space can dramatically increase your home's value. Whether you turn it into a family room, home office, or guest suite, this investment generally offers an ROI of about 70 to 75 percent.

Ensuring proper insulation and ventilation when finishing your basement is crucial for maintaining comfort. Putting in high-quality finishes, like durable flooring and stylish lighting, can make the space inviting and attractive to potential buyers.

Final Thoughts

Before starting any project, think about your budget, current market trends, and your home’s specific needs. Making informed choices can help you achieve a stylish and functional living space while ensuring a good return on your investment. From kitchen upgrades to energy-efficient improvements, the renovations highlighted here can significantly enhance your home’s value and appeal to future buyers.

By choosing a reputable company like Maine Home Maintenance to help with your home needs, you are not only investing in your home’s future but also ensuring that the work is done right the first time, saving you time and potential headaches down the road. Whether you aim to sell your house soon or are looking to enhance your comfort, these top six renovations can help you reach your goals. Happy renovating!

Maine Home Maintenance is owned and operated by Chris Lawlor with his partner Dave Stritch and together they have more than 30 years of experience in carpentry and the home remodeling business. Call them at 207-894-0424 or visit www.mainehomemaintenance.com to see how they can help you transform your home. <

What to do before real estate appraiser comes to your home

By Richie Vraux

Preparing your property for an appraisal is crucial to getting the most valuation for your property.

Before the appraiser arrives, there are several key areas you should focus on to ensure your property is seen in its best light.

Exterior maintenance

First impressions matter, and the exterior of your property is the first thing an appraiser will see. A well-maintained exterior not only enhances curb appeal but also suggests that the property is likely to be equally well-kept on the inside.

Curb appeal

Start by assessing the overall look of your property from the street. Make sure to clear any debris, rake leaves, and trim overgrown bushes. A fresh coat of paint - Make sure there is no chipped paint, and a welcoming doormat can also make a world of difference. These simple touches can significantly impact the value of your home.

Addressing repairs and landscaping

Take note of any necessary exterior repairs such as broken roof tiles, damaged siding, or cracked windows. Ensure that these are fixed before the appraisal. Landscaping should be neat and presentable. While it's not necessary to invest in professional landscaping, a tidy garden indicates a well-cared-for property.

Interior

The interior of your property is just as important as the exterior when it comes to appraisal. A clean and organized space can make a powerful impression on the appraiser and potentially increase the property's value. A decluttered space not only looks appealing but also makes rooms appear larger. Remove personal items, excess furniture, and any clutter that might detract from the property's features. A thorough cleaning is essential; consider hiring professional cleaners if necessary. Shampooing carpets, washing windows, and ensuring kitchens and bathrooms are spotless can present your property in the best possible light. Minor upgrades that can boost appraisal value: While major renovations aren't necessary before an appraisal, small upgrades can positively impact the appraised value. Consider updating fixtures, hardware, and lighting. Fresh paint in neutral colors can also be a cost-effective way to give your interior an updated look. These minor improvements can suggest that the property has been well-maintained and will bring added value to your home.

Recent Home Improvements and Repairs

Any recent upgrades or fixes can significantly affect the value of your property. Before the appraiser arrives, compile a detailed list of all improvements and repairs made to the property. This list should include dates of completion, brief descriptions of the work done, and any permits that were obtained. Such improvements can positively influence the appraiser's valuation. Be sure to include everything from major renovations to minor repairs that have contributed to maintaining or enhancing the property's condition. If you have tax records there, it will certainly help in the mix. It is very important to check all these issues prior to calling for an appraisal. You, the homeowner, can boost your home's value by thousands of dollars by spending a little time going through your house.

If you are buying that house, you want to make sure your inspector goes through everything, so you won't be fixing things in the near future.

Having a home warranty is extremely helpful, especially if a major appliance is older and starts costing you money. You don't want to have to buy a major appliance shortly after you purchase the home. Those home warranty policies run between $500 to $1,000 but might be worth it in the long run and is also transferable to the new owners.

Remember the time and effort you make into preparing your property for appraisal time may bring a higher value than you might have anticipated.

Richie Vraux is a Broker/ Realtor with Pine Tree Realty of Maine 76 Tandberg Trail, Windham. Call 207-317-1297 or email [email protected] <

1031 Like-Kind Exchanges for Commercial Real Estate

By Larry Eliason

A 1031 like-kind exchange is a tax planning tool for deferring tax on capital gains. You can sell an investment property and reinvest the proceeds in a new property. This essentially postpones the tax liability from the sale.

The term “like-kind” refers to the nature or character of the property. There is a wide variety of property types that you could consider to be like-kind as long as they qualify as investment type properties.

A good example is an investor who owns a small shopping center in Windham valued at $4 million. The investor has held this rental property for many years and has accumulated substantial appreciation. Now, the investor wants to diversify his/her portfolio, and they’re eyeing a portfolio of multi-family rental properties for $5 million as they see considerable upside potential.

The investor decides to utilize the 1031 like-kind exchange. They sell the small shopping center and use the proceeds to acquire the multi-family rental properties. The 1031 like-kind exchange can help defer paying capital gains tax on the sale of the shopping center.

This transaction should qualify as a like-kind exchange because it involves similar types of real estate assets. The net market value increases from one property to the next. The 1031 like-kind exchange allows the investor to seamlessly transfer their real estate investment while deferring tax liabilities.

If you are considering a sale with the intent to use the 1031 like-kind exchange, identify the property you want to sell. This must be a qualified investment property and not your primary residence. Again, personal residences don’t qualify for a 1031 like-kind exchange. The subject properties must be held for investment or used in a trade or business.

Before you sell your property, hire a Qualified Intermediary. This step is instrumental because the IRS doesn’t allow the seller “you” to touch the money between the sale and the purchase of the new property.

Once your property is sold, the proceeds minus any closing costs and debt pay-off go to the Qualified Intermediary. Again, the sale proceeds cannot go to you. If you were to receive the proceeds directly, this would be the basis for a disqualification and result in a tax event that you wanted to avoid in the first place.

You have 45 days from the date of sale to identify up to three potential replacement properties. To fully avoid paying any tax, the net market value and equity of the property acquired must be the same as, or greater than, the property sold. This is regardless of their total value or as many properties as you want, as long as their combined value doesn’t exceed 200 percent of the sold property’s value. You must document this in writing and deliver it to your Qualified Intermediary.

From the date of sale of your initial property, you have 180 days to complete the purchase of any property or properties identified in the previous step. The Qualified Intermediary then transfers the funds from the initial sale to the seller of the replacement property.

When you file your taxes for the year the 1031 like-kind exchange took place, include Form 8824 in your tax return, notifying the IRS of the exchange and informing them what property you sold and what property you purchased as part of the exchange.

The IRS rules for 1031 exchanges are very strict, so be sure to follow them closely. If done correctly, a 1031 like-kind exchange can be a powerful tool for deferring tax and building wealth through additional real estate investment.

The tax return and name appearing on the title of the property being sold must be the same as the tax return and title holder that buys the new property. Today, many properties are bought and sold using LLC’s or Trusts so keep this in mind and be consistent.

No additional value received in an exchange can be allowed that isn’t like-kind property, such as cash, property improvements or debt relief.

When you sell a property as part of a 1031 like-kind exchange, all of the equity you receive from the sold property must be reinvested into the replacement property.

When you sell and buy property as part of a 1031 like-kind exchange, both the sale and purchase need to be arm’s length transactions. Family related transfers can certainly come under a lot of scrutiny by the IRS so consult with your advisors.

A Reverse 1031 like-kind exchange is another option that allows you to purchase your replacement property before selling the property you intend to replace. This has many of the same rules and requirements as a normal exchange.

As always, consult with your professional team such as your Lawyer, Accountant, Banker, Qualified Intermediary and Commercial Broker early in the process so that you may take full advantage of this very useful tax planning and real estate investment tool.

Please feel free to contact me on my cell at 207-415-2112 or email me at [email protected]. Butts Commercial Brokers, 1265 Roosevelt Trail, Raymond, Maine 04071. www.ButtsCommercialBrokers.com <

Could Your Property Host an ADU? Maine Launches New Initiative

By Nicole Foster, Broker/ REALTOR

Homeowners across the state of Maine are being encouraged to explore the many benefits of investing in creating accessory dwelling units, known as “ADU’s” on their property, through a newly launched campaign. The promotion includes a series of videos and a user-friendly website to help educate property owners and provide clarity surrounding the entire process from start to finish.

The initiative supports public awareness of LD 1829, “An Act to Build Housing for Maine Families and Attract Workers to Maine Businesses by Amending the Laws Governing Municipal Land Use Decisions,” recently signed into law and scheduled for implementation.

Under the new law, city-council municipalities have a compliance deadline of July 1, 2026, while towns governed by a town meeting have an additional year, until July 1, 2027. 

The legislation builds on the landmark 2022 law, LD 2003, which legalized accessory dwelling units (ADUs) statewide, and initiated long-overdue changes to local land-use regulations. With clearer and more consistent standards, LD 1829 builds on that foundation by making it easier to develop ADUs and multifamily housing. The law revises existing subdivision requirements, removes owner-occupancy mandates, allows multifamily dwellings to qualify, reduces minimum lot sizes, and increases the number of dwelling units permitted on a single lot.

An accessory dwelling unit, or ADU, is an independent and self-contained residential space that is usually smaller and located on the same lot as a single-family or multi-family home. Also called a granny flat, in-law apartment, carriage house, or secondary suite, an ADU typically includes a kitchen, a bathroom, a separate entrance and sleeping area. It can share utilities or walls with the main home. Common examples include a suite above a garage or main floor, a finished basement apartment, or a detached structure such as a guesthouse or backyard cottage. (RV’s and tiny homes on wheels are not considered ADU’s in Maine).

Many homeowners choose to invest in their property by adding an ADU as a way to keep loved ones close, whether for aging parents, caregivers, or adult children. Others see the financial potential using an ADU as a rental unit to help offset monthly expenses or supplement retirement income. For some seniors, an ADU provides an ideal downsizing solution – allowing them to move into a smaller, more manageable home designed for their current needs, all while remaining on their own property and close to family. Beyond these practical benefits, ADUs can also enhance both property value and appeal, as well as create flexible living options that adapt to a family’s changing needs over time.

By visiting the Maine ADU Guide, homeowners can navigate each phase of the process, starting with an overview of the rules and regulations that apply statewide. From there, users can enter their property address into the Maine ADU Wizard to see what may be possible and explore available options. Considering how you plan to use the ADU—and who will live there now and in the future – can help determine the level of privacy required and set a realistic budget. Adapting an existing interior space, such as a basement or attic, is typically the least expensive option. Expanding your current structure or converting a detached space, like a garage, tends to cost more, while building a standalone ADU generally requires the highest budget. Estimated costs and additional fees which may apply are outlined in the new Maine ADU Guide website.

A growing number of companies in Maine are now offering prefabricated ADUs, either as a new focus or as an addition to their existing home design and construction services. These prefabricated units, sometimes called modular or panelized ADUs, are built off-site in a controlled environment and then transported to the homeowner’s property for installation. As interest in ADUs continues to grow in Maine, these companies are helping make the process more accessible, efficient, and predictable for homeowners looking to invest in their properties. The Maine ADU Guide offers dozens of free floor plans available for download or inspiration, as well as photos and videos of completed projects.

If you need help connecting with utility companies, identifying the right municipal authorities, or finding contractors and vendors to get estimates for your unique project, your trusted REALTOR can provide recommendations. We’re here to guide you through these milestones in homeownership and help protect the value of your property every step of the way.

Nicole Foster is a Windham parent and real estate Broker with 20 years of experience working with buyers, sellers and investors. <

Navigating a Mixed Real Estate Market: What today’s conditions mean for buyers and sellers

By The Libby Starnes Team at Signature Homes Real Estate Group

If the real estate market feels a little confusing right now, you’re not alone. Headlines alternate between stories of price reductions and multiple offers, slower activity and sudden bidding wars. That’s because we are in what many professionals are calling a mixed market – a market where conditions vary widely depending on price point, property type, and location.

In a mixed market, there is no single narrative. Some homes are selling quickly with strong demand, while others are sitting longer and requiring strategic price adjustments. Understanding this shift is essential for both buyers and sellers who want to make confident, informed decisions.

For sellers, the days of “list it and they will come” are largely behind us – at least for now. Today’s buyers are more cautious and more educated. They are paying close attention to condition, pricing, and value. Homes that are well-maintained, properly priced, and thoughtfully marketed are still selling—and often selling well. On the other hand, properties that are overpriced or need significant updates may require more time, flexibility, and patience.

This is where realistic pricing matters more than ever. Pricing a home correctly from the start helps generate early interest, which is critical in a market where buyers have options. Professional photography, strong online exposure, and clear communication about a home’s features and updates can make a meaningful difference in how quickly a property attracts attention.

For buyers, a mixed market can present real opportunities. While interest rates remain higher than in recent years, there is often less competition than during the peak frenzy. This can mean more room to negotiate on price, inspections, or closing terms – especially on homes that have been on the market longer. Buyers who are prepared, pre-approved, and working with a knowledgeable agent are well-positioned to take advantage of these moments.

It’s also important for buyers to recognize that not every property will come with leverage. Desirable homes in sought-after neighborhoods or at popular price points may still receive multiple offers. Understanding which situations call for patience and which require decisiveness is key.

A mixed market rewards strategy over speed. It favors those who take the time to understand local trends rather than relying on national headlines. What’s happening in one town – or even one neighborhood – can look very different just a few miles away.

At The Libby Starnes Team, we believe education and communication are the foundation of success in any market, especially a mixed one. Our role is to help clients interpret the data, set realistic expectations, and create a plan that aligns with their goals. Whether you are considering selling, buying, or simply staying informed, having a trusted advisor makes all the difference.

Markets will always shift, but smart decisions are timeless. With the right guidance, a mixed real estate market doesn’t have to feel uncertain – it can be an opportunity.

If you have questions about what today’s market means for you or your property, we’re always happy to help.

For more updates, listings, or to schedule a consultation, visit www.libbystarnesteamhomes.com or follow The Libby Starnes Team on social media. Call them at 207-838-8051 or 207-712-2424 or visit them online at www.libbystarnesteamhomes.com. <