The phrase ‘cost vs. value’ in home remodeling is how much value you can add to the home in resale value. The main reasons for a remodel is for enjoyment and to make the room look better, but resale value shouldn’t be excluded. It’s something you don’t think about, but when it comes to selling your home those extravagant renovations will not attract buyers.
Consider the following:
Neighborhood Location: Home remodeling is about what you want, but the home needs to blend in with the neighborhood. If there are no two-story homes in the neighborhood, for example, adding one can hurt the bottom line.
Geographic Location: The region of the U.S. matters in home purchases. That’s because it has an impact on what homes will have the biggest resale value on investments. When you are adding home remodeling extensions or renovations consider the weather and U.S. location. Swimming pools, for example, won’t work in cold areas, but the southern portion of the U.S. will appreciate it.
Reason: What is the reason for the remodel? If the reason is ‘because it’s outdated’ or ‘because it’s the latest technology’ it is considered a project and the value of the home won’t last as long. That’s because the latest designs and the newest technology will become outdated as time goes on. However, the reasons are different if it’s a home addition (garage, extra room, etc.) or to fix a structure (roof, floor, walls, siding, etc.). The foundation and structural improvements to these projects has a bigger investment that will last longer because home structure never goes out of style.
Project returns on investment (POI): The annual Cost vs. Value investment list is out, and it shows you common remodeling projects along with the return on investment. It is divided into midscale and upscale remodeling. According to the list, the fiber-cement siding replacement is number one for upscale remodeling. A steel entry door replacement is number on for midscale remodeling. Wood and composite deck additions, garage door replacements, wood and vinyl window replacements and a major kitchen remodel are the only ones that made the top ten on both lists. Other ideas on the list are attic bedrooms, basement, roof, and bathroom remodels.
This is a different way to look at remodeling. At the end of the day a remodel is done with you in mind. If you want a return on investment, you have to think with the buyer in mind too. Contact us for more information on remodeling your home.