Remodeling or adding a home addition can be a great idea and good investment. Some things that affect the effectiveness of such a project are interest rates, property values and length of time you will enjoy the completed project. Before moving forward with such a project, you may want to consider the following items before making your final decision:
Additional expense – The cost of the project is probably first major consideration prior to beginning the project. Need to estimate the cost of the project and be prepared to accept some cost overruns when unexpected things occur. If you are making an addition to your home, need to consider the additional cost of utilities and property taxes that may associated with the improvement.
Revised sales value – Need to realize you are not going to recover 100% of your investment for additions and/or remodeling if you decide to sell in near future. If planning to sell in near future need to be selective on what improvements, in order to get greatest return on investment. A portion of some home improvements, the homeowner may need to justify the expense by enjoying the opportunity to live there versus financial gain.
Design/Remodeling – When adding additions or remodeling always think about the possibility you may want to sell the property in the future. Home addition that is a mismatch with the neighborhood, or interior remodeling that is totally unique may hurt the resale value of the property.
Miscellaneous pros and cons - Strong possibility when making an addition, this may reduce your yard space which may be a turnoff to potential home buyers. On the other hand, if you have great neighbors and neighborhood, this allows you to stay in an area you love. When adding to your home, gives you the advantage to customize the project to meet your needs and desires.
In conclusion, weigh all the pros and cons before making a decision. It also advisable to talk to professionals and friends to get their opinions.