The Real Value of a Renovation
Keeping up with the Jones’ is maybe a little more important when you buyer an older home or thinking about selling the home you have been in for a while. What you do need to know for either case is the value that your renovation in the long run.
First things first! If you are planning on staying in the home make changes that add to your comfort, keeping in mind what might be worth the money you are going to spend. If you are doing the renovations to sell, you should consider talking to your Realtor about what is selling and the value it will add to your home. See the infographic below for the payoff on renovations.
Your next thought is to remember that the price of the home is basically what the seller is willing to accept and the buyer is willing to pay. Renovations may or may not be a consideration in the offer but it could make the home more appealing to the buyer. The price of a home is essentially that which the seller is willing to accept. The value of renovations may or may not affect the offer, but the appeal of the renovations be it a spa like master bath or energy saving like insulation could swing a buyer toward the home.
Renovations can be very expensive, take a long time and make life a little miserable while living in the construction zone. It can be stressful, so be prepared.
The end result hopefully is that the money put into the renovations will increase the sale price of the home or to bring it up to today’s standards to make it a more attractive buy.
As a buyer, you will want to make sure that the renovation was completed the right way. If the home is older, did the water pipes and electrical wiring need to be replaced and not just a pretty façade put up? If they were, have it verified on a home inspection. You will need to know what questions to ask the inspector, so do your homework on home repairs.
Things to Consider on a Renovation
Will you do the work yourself or hire a professional? Either way the work should be high quality to bring value to the home.
Have you thought out the design? Attention to detail, use, scale and materials will add the most value to a home.
Will the renovation make the home more livable? Improved access, storage or safety is the most important reasons to do a remodel. Ensure that your renovations work with the flow of the home such as makings sure furniture can be moved easily through the house, doors do not knock each other or drawers run in to each when opened.
Thinking about adding new lighting? Think about keeping the lights bright in the kitchen and bathrooms, cozy in the living, dining and bedrooms. Well placed recessed lighting is always a plus. Keep things simple if you are thinking about selling, go for the blinged out chandelier if you are staying.
One of the more expensive renovations, but less “fun” is the electrical and plumbing, but updating this can add to the function o the function and safety of the home. Be sure and document what and where you have done the work for your records.
Even less “fun” to renovate are the roof, foundation and windows. Think about contacting your insurance if you think there is a problem with your roof. You never know if storm damage may be the culprit. You will want to consult with a foundation expert if you think there could be any problems with your foundation. Windows are a great renovation in that they can add beauty to the home with clearer glass and more light as well as energy efficiency.
Renovating rooms? Remember to keep it timeless and classic while adding more storage is a bonus. Energy efficiency in appliances is also a plus. Remember if you are turning a room into something different then its original purpose be sure that it can easily be changed back.
Updating your home is always a positive. Invest wisely.
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