Dollars And Sense
Unless money simply isn’t an issue, the financial implications of remodeling are definitely something to consider. When it comes time to sell your home, the new buyer will usually not pay for over-improvements. This means that if you have the smallest home in an area of larger, more expensive homes, home improvements may make very good financial sense. However, if you already have the largest, most expensive home in the area, more improvements may make you more comfortable but may not bring you a good financial return. You may find that it is financially wiser to sell and move to a different home that already has the features you want to add.
When Money Does Not Matter
Money isn’t everything, however, so if the most important consideration for remaining in your home happens to be the school where your children attend or the proximity to your work or to a particularly attractive recreational opportunity then remodeling may be the best option. But let’s look at another scenario; where money still does not matter but the idea of having your house torn up for weeks at a time makes your blood run cold. Then, it really doesn’t matter how much money you might make turning a fixer-upper into a model home. You will be far better off selling the home you have and moving to a home that better fits your needs.
Get The Facts
Before you finalize your decision regarding remodeling versus moving, it is wise to get a professional estimate of your home’s current value, the actual costs of moving to a different home and the estimated return on investment of the most common types of home improvement. As for improvements that traditionally bring the highest rate of return on investment, here are some statistics. Kitchen remodeling and adding a bath tends to bring rates of return with averaging anywhere from 85% to 95% return on your dollars spent. Compare that with the 64% return on investment for adding a home office and 77% return on investment for adding a deck.
Do Your Homework
Before making any major decision regarding home improvement versus selling and moving up, it would be wise to get an appraisal of your home to find the current value and how your home compares to other homes in the neighborhood. Also remember that things always seem to take longer than than expected. This seems to be especially true when it comes to remodeling and home repair.