The remodeling and renovation of homes should be evaluated more closely than in the past. In today’s real estate market it’s very important that you keep an eye on the amount of return your investment will bring. If your remodel/renovation is strictly for you with the plan of staying in your home for many years to come and you have the money to make your improvements, by all means go ahead with your dream project. If, however, you are looking at your home improvements as a way to maintain or improve your home™s value, do some research and evaluate whether you will achieve the return you need or expect to get when you sell.
Here are some things to keep in mind:
- Stay on par with your neighbors. Having the best house on the block might be nice if you are the type of person who likes to one-up everyone but it certainly won™t give you the most bang for your buck. Your home is typically as valuable as other comparably sized homes around you.
- Ascertain your home™s condition. Today™s home buyer does not want to spend a lot of money fixing up needed repairs like a leaky roof and broken windows. Keep on top of the condition your home is in and make it clear to potential buyers that the home is well taken care of.
- If you are making upgrades to your home see if they can be energy efficient. Not only will you get a tax break but you will probably save money in the long run as well.
There are many remodeling and renovating items that you can choose to do that are cost-effective and attractive to future home buyers. For a recent article from Money that touches on the subject of remodeling and renovating click here.