Home remodeling tips abound for many household owners, primarily because of the fact that every homeowner want to make improvements and enhancements for their home. But unfortunately, not all home improvement projects increases a residential property’s estate value. This is the reason why homeowners should always consider all the financial risks that could be involved in remodeling. This is also vital to individuals who are planning to sell their home within a year right after the completion of the home improvement tasks.
Financial investment factors are some of the priorities especially on the list for home improvement tips due to the fact that there are several variables affecting a house’s property values. Regardless of the type of home renovation project, a homeowner may never expect for something like a ‘dollar to dollar’ return. The possible financial returns on a home improvement project can be anywhere from zero to ninety percent. This is really hard for many homeowners since there is no basic formula for computing the return of investment for home renovation.
Factors you have to consider for Home Remodeling
- Conversion of existing space. An example of this kind of task is converting the attic into a bedroom and finishing a basement. These tasks are more likely to bring in a good return rather than adding a family room in the home. The total cost of adding exterior siding, bricks, extending roof, and adding a foundation is more costly compared to remodeling a room. These items already exist with any current space.
- Where water can be found. Remodeling your kitchen or bathroom often leads to greater investment returns compared to any other area in the home.
- Quality of construction materials. High quality materials bring higher returns. Don’t be deceived by purchasing appliances, sinks, and cabinets with plastic materials. You may save money upfront but these cheap stuffs can actually reduce your home’s value.
- House repairs. Home repairs such as painting interior/exterior rooms and replacing your roofing system usually do not increase your home’s real estate value.
- Swimming pools. Pools may not be great investments since many people don’t want them because of their costly maintenance fees and other cleaning requirements.
- Themed rooms. If you having thoughts about reselling your home in the near future, then remodeling an area for a tribute to a football team wouldn’t do you any good.
Questions you need to Ask before Starting your Home Renovation Project
Try to review some of these questions before even allotting a monetary investment on your home remodeling project.
- Are you reselling your home soon? If you are doing an improvement project to enhance home value, then try to avoid expensive projects.
- What is your neighborhood’s home resale value? The median resale value is what you reasonably expect minus the amount of remaining mortgage. Use the difference and then subtract the expected profit- this is your budget limit for home improvements.
- Are you going to do it yourself or seek the help of professionals? Remodeling takes skills, time and daily routine adjustments. Oftentimes, it is faster and less costly to hire the right home remodeling contractors to complete the tasks for you. Regardless of which option, being aware of what you want is crucial for success.
It would be wise for homeowners to take into consideration how their investment on renovation projects would affect property value. Whether you are selling your home tomorrow or perhaps ten years from now, these handy tips may still apply.