Home remodeling is thriving. Maybe it’s because old houses are starting to need the tender love and care that owners have been conveniently harboring for other matters, maybe it’s because the baby boomers are finally starting to settle down and make comfortable and livable niches for themselves, maybe it’s because peer pressure and shiny ads have finally gotten to everyone, all at once. No one is sure – all we know is that home remodeling is hot.
Home remodeling has the obvious advantages of transforming your space into your space, customizing and designing it according to your individual needs and wants. It also updates outdated and outmoded appliances, structures and designs and can add usable space in your house. The comfort and pleasure you get from your newly renovated space is an obvious plus.
But remodeling has another, equally important advantage – it increases the value of your home. Whether you plan to move out soon or stay put for a good long time, it’s worthwhile to consider what influence the remodeling job you are planning will have on the value of your home.
Certain remodeling projects are more likely to recoup your costs for you when you sell your home. For example, both a minor kitchen remodel and siding replacement recoup a national average of 93% upon sale. A mid range bathroom remodel recoups 90% and a mid range bathroom addition recoups 86%. A basement remodel recoups about 79%.
The above numbers are very loose suggestions for what you will gain back upon the sale of your house and there are many factors that contribute to how your particular remodeling project will account in the sale of your home.
For example, the national average does not reflect local economies and house markets. A stagnant local economy has led to homeowners recovering an average of 65% of money spent on remodeling projects while in some economically active areas homeowners recoup an average of 109%. People tend to make more of their money back if they wait longer to sell after the remodel job. By the same token, don’t wait too long as the remodeling job will wear out and have to be redone.
If you are remodeling in order to increase the comfort and usability of your home then you are probably going to pick areas that need attention, which may or may not be the areas that tend to be most profitable in the house market. However, the following are some suggestions that may help you recoup the maximum possible when you remodel your home.
First, if you are still deciding what project to do, think about the fact the some projects consistently recoup more money, kitchens and bathrooms topping the list without fail. On the other hand, pools and decks tend to make back least. There are some geographical variations – decks built in areas down south will recoup more than those built in the northeast, for example.
Second, low priced projects usually have a higher cost recovery than more expensive, more upscale remodeling jobs. People are willing to pay for something that increases the quality of the space in their potential new house, but they do not want to pay for lavish renovations that you splurged on, especially if they wouldn’t have done it themselves. A mere facelift in a kitchen will probably pay back more than a complete redesign. This tends to vary by neighborhood and can depend on the prices of the homes in the neighborhood.
Either way, if you want to make your money back upon sale, do not remodel to make your house the most expensive in the neighborhood. Although this will certainly attract people to the house, not many will be willing to pay the price. If someone is willing to pay more than what the majority of the houses in the neighborhood are worth, chances are they will just look for a home in a different, more expensive area.
And lastly (this is always the most sensitive point), be wise with your designs. If you know that you are planning to sell, try to stick to neutral, sellable designs. Neutral designs are easier to market and people tend to prefer them because they are easier to modify to personal style. When people buy a home they want to make it theirs without, for example, a rhinestone fireplace or intricate designs making them feel like strangers in someone else’s quarters. If you feel like neutral designs would really stifle your style and make you feel like a stranger in someone else’s abode while you live there, try decorating using techniques that are easily altered, like wall colors that you can quickly repaint when you begin the process of selling.
Be wise with the remodeling choices you make and research them before you jump into demolition or buy matching grout for seven rooms. Each area is different and this could work out either well or poorly for you. With some quick investigating you can decide which remodeling project is most appropriate and how to go about it in the best way.
And remember, there’s a good amount of value in your enjoying your renovations as well. This can’t be measured in dollar amounts, but isn’t that true for all of the most valuable things?