Homeowners undertake home improvements to either improve their home’s resale value, or their own enjoyment of their house.
There are a couple of key questions you should ask yourself before you undertake a home renovation project:
- Will the money spent on the renovation be recouped once you decide to sell your house?
- How long do you plan on living in your home? Will it be long enough to enjoy the results of your renovation project?
The best reason for a home remodel is so that you can enjoy living in your home. Doing significant home improvements to improve the value of your home is not a wise strategy. Home values are primarily related to the value of homes around it, not to improvements you make to the house. What the improvements will do is help sell a house, but you can’t count on them to significantly increase what a person will offer for your home.
Probably the most popular renovation is the kitchen. This is where family and friends tend to congregate. You can expect to recoup about 75% of your investment in the upgrade.
After the kitchen, the next most popular remodel is either adding or upgrading bathrooms.
There are always new trendy renovations. Right now, media rooms and home offices are popular, and while you may not recoup the money you invest, they can certainly help sell your house.
Once you’ve decided to move forward with a renovation, it’s time to shop for a contractor. You need to get bids from several contractors. It’s important to remember that while price is important, choosing the company with the lowest prices is not always the best idea.
Finding a good, reputable contractor is more important that price. We have all heard horror stories about contractors who start a job and then disappear, leaving the home torn up and the space unusable.
Ask the contractor for the following items:
- Proof of a current license and insurance coverage
- A list of suppliers for you to call to make sure the contractor pays his bills on time
The bottom line is this: Do the home remodeling for you own enjoyment first, and secondly to add value to your home – and make sure you are ready to live with the chaos and mess that goes along with remodeling your home!
Here are some figures that show you what kind of return you can expect on your renovation:
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