With the arrival of spring comes the desire to remodel and redecorate our homes. Why? I’m not sure…probably has something to do with the fact that many of us have been staring at our walls all winter and need a change. That, and tax refunds. 🙂 But, is that remodeling project you are considering worth doing? Will you see a return on your investment? Read on for some things to consider before taking on that remodeling project…
If you search the web for info on which remodeling projects will bring you the most return on your dollar, you will find a ton of information. In general, homeowners will see the best return on kitchen and bath remodels, with basement finishing and the addition of a deck or patio following closely behind. This means that when you go to sell your home, you will likely see the selling price increase by nearly the same amount of money you spent on your project.
There are a TON of variables, though, and those are some of the things you want to think about before taking the plunge.
Adding value to your home is one reason to take on a remodeling project – especially if you plan to sell your home in the near future (within 2 years). A new, freshly updated kitchen can go a long way to making your home stand out above the others for sale in your area. If this is your goal, be sure to take the value of your home into consideration before you make decisions about the finishes you choose for your home.
For example, if you choose to install a state-of-the-art home theater in the basement of a home valued at $125,000 and in a neighborhood with similar home values, you will likely not get your investment back at selling time. Likewise, adding granite countertops to a home of a lower-end value may not be a wise choice; the cost can rarely be recouped, since you cannot price your home substantially higher than others in your neighborhood and expect to sell it.
But, this isn’t the only reason homeowners tackle large remodeling projects. If you have no plans to sell your home for at least five years, the remodeling projects you are considering are likely on your mind for your own enjoyment. You may still want to consider the principles above (ie, not upgrading your home substantially more than your neighborhood can bear), but they become less important.
In this case, choose finishes and products that bring you the style and function that you desire, while keeping your budget in mind. Those granite countertops could be a great addition to your new kitchen, and they can bring you years of enjoyment when you spend time in your home. You may even be the only home on the block with granite countertops – and that’s fine. Go ahead and choose what you like for your home. Just be sure to remember that when you want to sell your home, you may not get a full return on that investment. But, you’ll have enjoyed your home before you sold it.
If the project you are considering includes the removal of walls or elimination of rooms, be sure that your home will still be sellable in the future. An example of this is converting a small bedroom into a walk-in closet or bathroom. A project like this can be an asset to your home in many cases. But, if you have just three bedrooms to begin with, losing one can make your home more difficult to sell later; two bedroom homes typically stay on the market longer in many locations. In the same way, removing a bathtub to make way for a large walk-in shower may not be the way to go unless you have a tub elsewhere in the house. Anyone with small children or pets needs at least one tub for bathtime, and not having one at all can reduce the value of your home at selling time.
There are so many reasons to consider a remodeling project in your home. Whether your intent is to raise the value of your home or simply make it more beautiful and functional for your own enjoyment, consider the current value of your home and the others in your neighborhood before proceeding, and you can win either way.Pin It