You like your home but your wife would like to update it. You discuss the pros and cons of remodeling and can't come to a decision. Your wife certainly would like to update the kitchen and bathrooms and you would like a media room and a home office. One key question is: will the money spent on the remodeling be recouped should you ever decide to sell your house? Another important consideration is how long you plan to live in your current home and will you enjoy the practical results of your remodeling project? Another factor to think about is how old you are now and what kind of income you can anticipate in the years ahead. If you are close to retirement age and your income will drop off considerably leaving you with less available cash, should you be spending a big chunk of change, perhaps over $50,000, in home improvements?
Home renovation can create stress in the home
On a practical note, can you live with the chaos in your house during the renovation process? Invariably, things do not go smoothly and you have to be ready to endure unexpected problems or delays when you deal with contractors. Another basic question: How do you feel about your home? Do you feel it is in the right neighborhood? Do you like the floor plan? Do you like the garden? If your answer is yes to these questions, then you can take some concrete steps towards actualizing your home renovation project.
Practical advice for home remodeling
Hire an appraiser to find out how much your home is currently worth. Check out the selling prices of comparable homes in the area. Do some detective work and find out who in your neighborhood did upgrades similar to the one you are considering and find out how much these upgraded homes sold for. Acquire multiple estimates for the remodeling project. Ask yourself if you will be living in your current home for at least five years.
Some home remodeling projects add value to your house
The value of certain home improvements has more impact on the selling price of the home than others. A media room or home theater is a hot item. People enjoy watching movies at home and this kind of addition could make sense for you as a home owner. The question is whether or not this will still make sense when you want to sell your home. A pool installation is a mixed bag because it requires money to heat and to maintain. Many people simply do not want the headache of pool ownership, so that could limit your future potential home buyers.
The main reason to remodel your home
The main reason for home improvements is so that you can enjoy living in your home. Making home improvements is not a wise strategy to increase the value of your house. Your house's value is primarily related to the value of the homes around it, not to improvements you make in the house. Of course an updated kitchen will help sell a house, but don't count on it to vastly increase what a person will offer to buy your home, especially if your upgrades aren't consistent with the other homes in your neighborhood.
Depending on where you live, popular home renovation projects may add value to your home
On top of the list of home remodeling projects that bring significant return on your investment, no matter where you live, is a remodeled kitchen. Next is an additional bathroom and remodeled bathrooms. Family rooms and master bedroom renovations also rank high on the list of renovations that add value to your home. Other popular additions include attic bedrooms, siding replacement, window replacements, the addition of a deck that extends your home outdoors and a home office. Outside of the Northeast, the home office does not bring much of a return; but in cities like New York, where office space is at a premium, a home office addition can bring a substantial return on investment. The bottom line: Do the home remodeling for your own enjoyment first, and secondly to bring added value to your home.