Maybe your feeling the need for more space, or just a different space. You are wondering should I move or renovate? the answer could be both. It is going to cost you approximately 10% of your homes value to move, so if you can renovate for less than that, stay and do it. Plan your renovation project with an eye to the potential resale value.
In addition to making your home more livable, remodeling can also make your home more valuable.
The areas that will give you the most pay back for your dollars spent are:
Kitchen: An updated kitchen will pay back 75 to 100 percent, depending on the quality of the work.
Bathroom: Payback of 75 to 100 percent.
Siding: This improvement is as much about maintenance as it is about curb appeal. Payback estimated at 75%
Windows: New windows will help with your heating bill, plus the payback can vary, but could be as high as 75%.
With some projects, you may recoup more than you spend! Remember that the payoff also depends on things like the value of similar homes in your neighborhood, don’t over renovate, in other words, don’t price your self out of the market.
Anther factor to consider is, the rate at which property values have changed, has there been a lot of sales in your neighborhood? If your neighbors sell for a good price, generally every house on the street goes up in assessed value.
And of course, location, location, location! If you are in a demand neighborhood, then by all means keep your home upgraded with current styles and trends. Remove the wallpaper! Change the colored bathroom fixtures. Replace the kitchen counter top and appliances. Whatever you do to freshen it up will pay back when you sell.
Always start with a plan! Imagine what you would like your kitchen to look, like, draw a sketch. Talk to friends who have done similar renovations. Visit home decor stores, and read home makeover magazines and websites.
Figure out how much you want to spend then bring your ideas and sketches to a contractor for an estimate, or if you doing the work yourself get estimates on materials, permits, fees, etc. Most jobs will include a sub-contract for the skills you don’t have such as electrical or plumbing.
Think ahead, Is the renovation going to add value when you sell next year or is it going to provide comfort and pleasure to your family for the next 10 years?
Keep it realistic and have a happy and profitable project!
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