Remodeling = Return?

July 20, 2011

Do you enjoy watching HGtv for remodeling ideas? Do you like browsing the home improvement stores and contemplating projects you’d like to tackle in your own home? Thinking of ideas and entertaining possibilities is a fun thing to do, but how do you proceed in making remodeling decisions? What are the factors that need to be considered?

We’ve put together a guide to give you some pointers on what factors you should consider and how much weight you should put on each component.

1. Your budget. Costs can very quickly add up and become more than you originally planned for. If you are hiring a contractor to do work in your home, consult with them before starting the project and go over the project and its costs in detail. Obtain an expected cost, but build some cushion into your own renovation budget before construction begins so you won’t be caught unprepared should an unforeseen issue arise.
2. Value/Comparability in the Neighborhood. In people’s quest to make their homes beautiful, it can be easy to forget that you don’t want to price your remodel out of your neighborhood. Some people make this mistake of pouring lots of money into a massive remodel, then when it comes time to sell the home, they are shocked to learn that they will recoup nowhere near the amount of money they put in. While improvements do factor in to the sale price of your home, the market (and more specifically the market in your particular neighborhood) is the primary factor in determining value. What is going on in your neighborhood? Are you considering a remodel that is fitting for the homes in your area? How much would a comprable home in your neighborhood sell for in your neighborhood…both with and without the remodel you’re considering? To get this type of detailed information and guidance, ask a Realtor.
3. Length of time you anticipate being in the home. If you remodel then turn around and sell your home quickly, the return will likely be significantly less than if you have built a reasonable amount of equity.
4. Quality of Materials. Like all things, there is a huge range in price for components you can put in your home. There can be huge disparities. In order to get a reasonable return on your improvements, make sure that you are using components that are on appropriate scale for your neighborhood. (for example, putting a Viking Range in a 1500 sq ft home geared for first time homebuyers is not likely to give you a decent return in relation to what you spent). Need to know what grade would be most fitting for your home and area? Ask a Realtor.
5. Your own enjoyment. Yes, making wise improvements with resale in mind is a good thing, but at the end of the day, you should make improvements to your home because you want to enjoy them while you are living there. If it’s an improvement that you’ve dreamed of making for your own enjoyment, then by all means…take the plunge and enjoy the benefits of your remodel

If you would like some professional guidance and input for your home remodel, or if you would like to prep your home for a successful sale, let us help you. We can give you up to the minute information on what is going on in our market.

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Tags: Ashford Square Realty, Bryan College Station Real Estate, College Station Realtor, Home Improvement, Margie Stibora & the Key Team, Remodeling, Tips for Remodeling

This entry was posted on Wednesday, July 20th, 2011 at 10:55 am and is filed under Blogpost, Bryan College Station Real Estate.
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