A lot of would be potential home sellers are having to rethink their plans. Many of them are considering remodeling instead of moving. What are the economic implications of remodeling that you should consider before starting? First you should consider whether extensive improvements will over improve your home beyond that of the selling price of other homes in the neighborhood. If you invest too much beyond the norm, you may not be able to recover it upon resale. On the other hand, resale may be years away and you have to make a judgment call as to where the neighborhood is going economically.
Next, you need to decide which rooms you wish to remodel and how much each project will cost. I have included a survey completed in 2007 that compares cost vs. cost recouped after resale to help you decide which projects to do first. You also should give consideration as to how long your home will be in a state of disarray while the work is being completed. Be careful with deadlines, because you can be assured that it will take longer to complete than you planned for.
Last but not least, reconsider your financing. If it has been over three months since you spoke to a lender, all of the requirements for loan qualifications have gotten tighter, so speak to your lender again, and recalculate your loan payments to make sure they are acceptable. Good luck with your remodel and enjoy the results.
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