Remodeling can be fun, but it’s something most Americans do for fun, or even to improve daily living. These are good reasons for undertaking a home remodeling project, but there’s always an arguably bigger question at stake: Your home’s market value. It’s high on the list of considerations for every homeowner, and for good reason. Even if you don’t sell your home, there is equity at stake. If you put professionals to work, you are not only the end-user—you are also, in so many words, a property investor. Gaining market value is helpful even if you don’t plan to sell.
The current realities of the housing market make it difficult for some families to consider home remodeling as a serious option. There are so many articles and opinions out there stating that homeowners are not recovering their remodeling investments like they have in the past. It’s only natural to wonder if home remodeling is worth it at all. Are the lifestyle benefits enough to justify the investment, even if your property value doesn’t increase very much? How much market value can the average homeowner expect to add by renovating in today’s housing market?
Affordable, functional renovations
Sometimes it’s those big renovations that can be scary. If you invest tens of thousands of dollars into expanding your home’s square footage or completely renovating the kitchen and bathrooms, you’ll naturally be more concerned about getting that money back in terms of market value. However, many people find that by focusing on smaller renovations—upgrading a single bathroom, for example, or taking down a wall to create a more open floor plan—they can avoid the investor’s anxiety that goes along with big projects. Major renovations are often the most rewarding and statistically likely to bring returns, but they’re not for everyone in every situation.
Asking why
A number of national organizations have studied the home remodeling trends. Data suggests that the most relevant question to ask yourself is why you want to remodel. If adding value to your home is the main reason, you can focus entirely on remodeling jobs with a higher average return. If the remodel is more about quality of life as you continue to occupy the home, gaining value should be less of a consideration.
Getting the best results
Of course, even if you stand to add value with your planned remodel, it all comes down to results and execution. Choosing an inexperienced, unqualified or dubious contractor could leave your project with major flaws, which will reduce your gains in terms of market value. Knowing what to look for in home renovation contractor is vital.
Re-assessing your plans
Knowing whether a specific remodeling project will boost your home’s value, and to what extent, is a matter of doing research and talking to the experts. Real estate professionals and home contractors have a wealth of knowledge and experience that is often free to tap into. Additionally, the market conditions specific to your neighborhood may not be accurately reflected by national data. Whatever the case, if you’re serious about knowing how much your home’s value will increase as a result of your planned renovations, reaching out to the experts is a step you can’t afford to skip.
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