Many homeowners spend thousands of dollars on home remodeling only to discover that it hasn’t increased the house’s value. It is unlikely that the homeowner will be able to make any profit unless they remodel is intended to correct a structural flaw or problem.

The most valuable projects are usually those that involve a kitchen remodel, bathroom remodel or window replacement. Homeowners should consider the cost of remodeling their home from the viewpoint of potential buyers if cost recovery is important.

These are the three most important things to remember when remodeling your home if you’re a first-time homebuyer who wants to improve your house before moving to a larger home.

1. It is a common mistake for homeowners to make when improving their home more than the surrounding neighborhood. Although the house with the most improvements might attract more attention than the others in the same area, it will not be able to sell for a higher price than the average selling price in the surrounding neighborhood. The market price is controlled by the low-priced homes in the neighborhood, not vice versa. This is a well-known fact.

Your home’s geographic location will also impact the success of any project. It is difficult to recover the costs of installing a swimming pool. Sometimes, it can even lower the house’s overall value. A swimming pool is a great addition to any home, especially if it’s located in the southwest or southeast of the United States.

Read also: Professional Services for Home Building

2. Time
Although you might not plan to move your house immediately after a renovation, it can have an impact on the potential for a remodel’s ability to increase a house’s value. A basement addition or finished basement, or other structural or design improvements will increase the value of your house for a longer time than updating your kitchen or bathroom.

You might be able to remodel your kitchen by knocking down a wall in your dining room and making it more open for cooking and entertaining. However, this will not increase your home’s square footage. A kitchen remodel with glass tiles and island space may bring you great joy, but it is important to be aware that you might not like the latest trend when you sell your home.

Although the $1500 water purifier system you purchased might be a significant eco-friendly upgrade, it won’t typically bring any additional value to potential buyers. It also has the possibility of being obsolete in a few years.

3. Take into account the cost and return on your investment
Many sources can provide information about the payback on home improvement projects. Realtor magazine publishes an annual report called “Cost vs. Value” that compares common remodeling projects and shows homeowners the expected payback. The report for 2009 can be found at: http://www.realtor.org/rmohome_and_design/Articles/1001_costvsvalue_2009

Remodeling magazine publishes an annual report that compares 33 popular remodeling projects to determine the average national and regional costs. To look at the current 2009-2010 report click on http://www.remodeling.hw.net/2009/costvsvalue/national.aspx
A second tip is to research local realty guides before making any major changes. The local taste of property buyers and the willingness to pay for the neighborhood are both important factors in determining home prices.

It is important to do your homework before you start any project. It is important to weigh the benefits that the homeowner receives from the remodel over the cost recovery associated with resale. Remodeling your home is about you and your satisfaction.

If you are interested in even more home remodeling-related articles and information from us here at U-Way Bright Homes, then we have a lot to choose from.

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