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Getting the Best Return on Investment for Your Remodel
Posted On August 30, 2018
With home prices rising in most regions, homeowners are staying put longer. Whether you have recently moved in or lived in your home for many years, it could be the right time to adapt your home to fit your changing needs. A home renovation project not only improves the livability of the home, it can also increase the resale value. If you are considering a home renovation in the near future, keep these tips in mind for getting the most return on your investment.
Compare to the Local Market
If you plan on selling your home in the near future, check out other listings in your neighborhood. If a home is for sale or recently sold, talk with your neighbors, find out what they have upgraded and what they got or expect to get in return. If your homes were built around the same time they could be due for the same updates.
Replace and Repair
Functional remodel typically goes farther than aesthetic design changes. Replacing appliances and fixtures when needed is easier than a complete overhaul, and you’ll most likely recoup more of your investment.
Don’t Get too Specific
Remodeling Magazine reports the average return on investment for all remodeling projects is less than 60%. Devoting your remodel budget to projects that suit your interest may not necessarily appeal to potential buyers. New countertops and cabinets are a great way to upgrade your kitchen, when you go for a neutral theme. See what’s selling nearby!
New smart home features like video doorbells and smart thermostats are becoming more common and appeal to young home buyers and tech savvy move-up buyers. If you are planning to stay in your home, think about what changes can make your home more livable. Will you need extra rooms for grandchildren? Greater accessibility? Wider entrances? Making the changes gradually will set you up for a comfortable retirement.
Don’t Forget the Front Yard
A yard revamp could be just the boost your home needs for more curb appeal. Upgrading landscaping is less expensive that other remodeling projects, and in some cases, you can do it yourself.
Hire Professionals When Needed
While you might be able to DIY with your front and back yards, know when to hire someone else. Roofing, plumbing, electrical wiring, and more are all better left to professionals. Work with a licensed contractor to ensure your remodel is safe and up to code.
As home equity nationwide reaches an all-time high, more homeowners are researching remodeling options. Cash-out refinances and home equity lines of credit allow you to pay for your renovation project with home equity. In some cases, a renovation loan can work too. If you’re interested in a home renovation to upgrade your home before you sell or improve its future livability, consult a mortgage loan officer to review your financing options.