How Will a Remodel Benefit the Value of My Home?July 15th, 2022 | by Shawn Welland
One of the biggest questions you may have when considering remodeling your home is, “How will a remodel affect the value of my home?”
This is a great question, and throughout this article, we hope to inform you of how a renovation will be able to benefit your home and its value.
Should I remodel?
What you hope to achieve by performing a remodel will determine if you should undertake it and to what extent. Certain portions of your home, such as the kitchen, bathroom, and outside entertaining spaces, will have a higher ROI than other areas. While remodeling projects such as swimming pools and overpriced custom features may not give you the ROI you were looking for.
Not every renovation needs to revolve around selling your home. Though if you are convinced that a swimming pool or a custom feature is something you genuinely want, and you are not planning to sell your home, then they are a great option. You may not be improving your ROI, but you are enhancing your happiness within your home.
Considering what your goals are when planning your renovation is a necessary step if you are hoping to sell the property as quickly as possible. In that case, focusing more on superficial items such as interior finishes and curb appeal may be what you will need to spend most of your time on. But, if you’re hoping to get the top dollar, spend the time and money on in-depth projects such as kitchen and bathroom upgrades and improving necessary home components.
What parts of the home should I remodel?
This will require you to compare your home to similar homes in your area. Kitchens are known for their potential for a significant ROI. If your home is in an average neighborhood, choosing mid-range appliances and finishes may be the best option for your renovation. Overdoing it can begin to hurt your ROI.
Bathrooms are also known to have significant ROI potential. But these will follow the same guidelines as the kitchen. Overdoing it may hurt the value of your home more so than improving it.
Renovations that permanently affect your home, such as additions, will affect your home’s value the most. Tackling projects such as finishing attics or basements may significantly increase the value of your home. While superficial improvements, such as painting rooms and changing light fixtures, will likely have a much smaller increase.
Why should I tackle a renovation in my home?
One of the biggest reasons people remodel a property is to sell it and benefit financially from the renovation. This could mean that you’re an investor who is looking to “flip” a home for a profit, or it could mean that you are a long-time homeowner who is attempting to get enough profit from their home to move on to the next one.
But maybe you’re just looking at bringing your home back to life. You want that gourmet kitchen, that high-class bathroom, or even that swimming pool because you aren’t going anywhere. You know that it may not improve the value of your home much, but you want it, and it will make you happy.
Either way, a renovation should benefit you in some way. Renovations can be time-consuming, complicated, and expensive. So, ensure that the reason you are beginning this remodel will be worth it in the end.
It is easy to see that the value of your home has the potential to be significantly affected by your renovations. From adding square footage to updating a kitchen, the worth of your home will change as you invest in it. Always check with your trusted renovation company before beginning a project. Our friendly and knowledgeable staff will be happy to help you with any questions that you may have. Give us a call and let us help you start your future renovation today.