Are Your Renovations Adding (or Subtracting) Value?

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Home renovation reality shows have inspired may homeowners to consider costly upgrades for their own homes.  While many home improvement projects are worthwhile, it’s important to know which ones are worth it from an investment standpoint.

Here are a few key considerations to keep in mind when you’re deciding on a renovation project.

Value Added (or Subtracted) for Future Buyers     Think of your renovation project in terms of what will appeal most to potential buyers, even if you’re note considering selling anytime soon.  Converting a garage into living space or eliminating a bedroom or a closet may cause future cubers to cross your home off the list.  These spaces are important to potential homeowners.

Many buyers won’t even look at homes that lack the right number of bedrooms, and a garage ranks as one of the most popular amenities in newly built homes.

Project Payoff       Be cautious when undertaking large-scale renovation projects.  While smaller DIY touch-ups and proper home staging can yield big dividends for sellers, large projects may not always pay off.

Remodeling magazine’s 2016 Cost vs Value Report showed that replacement projects, like changing a front or garage door, offer serious gins.

Which large projects pack the most punch when it comes to adding value?  Two-story additions, master suite upgrades and major kitchen remodels top the list.

Your Neighborhood’s Market Conditions      Consider the resale market in your neighborhood before deciding on a renovation project.  This is particularly important if you’re considering large-scale projects, like a full kitchen renovation or adding an extra bedroom.

Every neighborhood has a price threshold of what buyers are willing to pay, so a $75,000 kitchen remodel may not be worth it in a neighborhood where home values top out at $200,000.

Keeping your home updated is important.  Be, however, cautious when considering large home renovations.  Research their resale value, even if you’re not considering selling in the near future.

Let me know if you’d like my opinion about renovations that you’re considering.

 

 

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