See also Exterior Home Renovation
Remodeling costs are always a dreaded topic. Many a homeowner spent countless dollars in an effort to spruce up a home for sale, only to later realize that all the hard earned money barely netted half of the expenditures in profit.
Considering that a home is the biggest investment many of us will ever make, it is imperative that remodeling costs are considered an investment expense, and as such should net a sizeable return. To this end, it is advisable to have a home appraised prior to making large purchases in the remodeling department.
Find out how your home stacks up against other comparable properties within your neighborhood. Does it look like the other homes are valued higher because of a second or third bathroom? Does an increase in square footage spell a sizeable increase in new worth?
Will the Costs of Remodeling Be Worth It?
Several publications offer additional assistance in determining if a project is truly worth pursuing. They offer valuable insights into the exact aspects of a job, the length it takes to complete, the details that are involved, and the cost that it will usually incur.
Thereafter they add a generalized summary of the new increase in sales revenue a number of homeowners have realized because of the money spent on the remodel. It is interesting to note that remodeling costs are not recouped in their entirety. Instead, only a percentage actually translates into cold hard cash in case of a sale.
Obviously, there is no such thing as a guarantee when it comes to calculating the possible return on investment in case of a remodel. Sometimes a certain detail will catch the eye of a prospective buyer who will then bid more than anyone else just to claim the property.
Those publications that track these figures have taken this buyer behavior into consideration by focusing to a large extent on the creation of a national average from figures derived from representative cities from around the nation.
Estimated Remodeling Costs
For example, the remodeling costs involved in an average no-frills kitchen remodel are about $16,000. It is interesting to note that a nationwide average shows that only about 93% of this investment will be recouped, yet in comparison to some other remodeling projects, this is the most impressive return on investment a homeowner can wish for.
A close second is a complete replacement of all outdoor siding with new weather resistant vinyl siding. A sobering statistic is the addition of a sunroom.
Many a homeowner believes she or he is actually adding greatly to their home’s value by adding this little addition, but unfortunately of all the remodeling projects out there, this one actually nets the least when it comes to return on investment. Of a $32,000 or more per project expense, only about 71% are recouped when a home is sold.
The savvy homeowner will do well to research the market and search the sales figures to truly get a good feel on how much value a remodeling job will actually add to a piece of real estate.