There are two major reasons for major home improvements:
- improving your family's quality life
- attracting potential buyers
In the right market condition, a project might fit into both
categories. Other times, though, the two approaches will conflict.
In the first situation the project is perceived as a necessary or
worthwhile improvement to your family's lifestyle. It could be additional bathroom, hot tub
or new pool. The economic impact just doesn't matter. If you have the money for your
project and if you're planning to live in the home for the rest of your life you will go
ahead with your plans. Even though there's a good chance that very little of the cost
would be recouped in the subsequent sale.
On the other hand, in terms of enhancing resale value, certain home
improvements and remodeling projects are more worthwhile than others. Common projects
that can return more than you paid for them include painting the outside of your home and
modestly upgrading the existing landscape. Also consider updating a kitchen,
remodeling bathrooms. Projects that make your home more energy efficient are also
attractive and may result in some positive return.
One of the cardinal rules of remodeling is:
DO NOT OVER IMPROVE !!!
In the other words, it is unwise to fix up your home to the point where it becomes
worth $200,000 in a neighborhood of $150,000 dollar homes because chances are you won't get
your price when time to sell comes.
Home Improvements that pay off in the end:
- new kitchens have an investment recovery of 60-100%
- bath modernization has an investment recovery of 45-55%
- greenhouse additions have an investment recovery of 20% or
- central air conditioning has an investment recovery of 75-85%
- new siding with insulation board has an investment recovery of
- new windows have an investment recovery of 75%
If you have more questions about home improvement please send me an e-mail.