REMODELING: Do You Know What Makes the Dollar Difference?
It remains consistently true that remodeling kitchens and baths provides the highest percentage return on investment … but …. It takes time!
The Difference in Time
Remodeling projects should be done when you are planning to staying the house for several years, not simply for the sake of trying to increase resale value. As with many investments, it’s the quiet power of compounding that creates good returns. Only minor remodels should be considered if selling quickly is your primary goal.
By being in your home a longer period of time, you give the real estate market time to increase and you leverage your remodeling investment as property values grow. Statics are available from all sectors of the housing market, from real estate agents, to contractors to financial institutions. Do your homework.
With a quality remodel, you can increase your returns the longer you stay in the home.
The Difference in Rooms
Two of the best improvements you can make to your home come from remodeling kitchens and baths. This makes sense because these are the most used rooms in the home. High quality appliances, quality construction and spacious layouts always attract qualified buyers. Typically, you will discover a range between 70% to 90% return on your bath or kitchen investment dollar. Having said that don’t make an improvement in one area at the cost of another. That luxurious master bath that turns your home from a three bedroom to a two bedroom may have a negative impact on your investment.
The Informed Difference
Depending on your specific location, there can be differences in what remodels provide the best returns. On the west coast it is usually kitchens and baths, while east coast buyers may be looking for energy upgrades. The bottom line is that you should not invest a load of money into a home remodeling without determining what is most sought after in your area.
The Emotional Difference
Even though it is a sound investment to stay on top of home maintenance issues such as roofs, siding and foundations, they don’t carry the emotional impact of the most used rooms in the house such as the kitchen and bath.
Real estate agents will tell you that bathrooms can be deal breakers when it comes to getting potential buyers to make an offer. A luxurious master bath designed for today’s working couples upgrades the entire property in both appeal and value.
We all feel the anxiety of living in a recession. Everyone is looking for cost-effective ways to relive stress and keep our capital investments growing. Upscale bathroom amenities accomplish both goals. Upgrades like massaging bath systems and luxurious soaking tubs provide a cost-effective alternative to getaway vacations, spa retreats or massage therapist visits.
The Noticeable Difference
It is reasonable to expect that improvements will increase the value of your home. Having said that, you must be reasonable with your expectations. It is never wise to price your home of the neighborhood. The most expensive home on the block is the hardest one to sell when buyers start doing their comparison shopping. You want your home to stand out and be attractive, but be sure you don’t go too far!
The Dollar Difference
In the long run, if you choose your upgrades wisely, you can be sure it will make a positive dollar difference.