Though the real estate market has seen some difficult times, home remodeling projects are still an excellent investment if you know what you're doing. The most practical uses for your remodeling dollar are highly dependent on many factors, and the most important element of a wise renovation is your specific motivation for performing the project.
Renovations that will make your daily life more comfortable or more enjoyable are always sound.
1.Good Remodeling Investments for Your Primary Residence
If you currently reside in the house you plan on remodeling and have no desire to move any time in the near future, the number of sound investments available is much higher than it is for those looking to sell. In fact, just about any upgrade that you are highly motivated to begin will likely be a good investment if you plan on sticking around for a decade or more to enjoy it. Whether it is a prized landscaping feature, a much-needed upgrade to an old kitchen or bathroom, or something as simple as adding a few electrical outlets, renovations that will make your daily life more comfortable or more enjoyable are always sound investments as long as you're around to reap the benefits they bring.
2.Investment Remodeling for Sellers
Identifying good investment remodels is much more difficult when you plan on selling your home in the foreseeable future. This is because you now have to take into account not only your own needs, tastes, and wants, but those of the public at large, too. For an avid photographer who plans on remaining in his or her home for the next 20 years, building a small darkroom in the basement or garage can certainly be considered a wise investment. If that same person performs the same renovation in the same house but decides to sell in the next year or two, however, that investment becomes a loss since most prospective homeowners will not view having a darkroom as a very valuable feature.
Resources of all kinds are available to help homeowners identify the best renovations for adding value to a home that's on the market, but none of these can tell you with absolute certainty which project will be worth more than its cost in added resale value for your specific situation. Due to the large number of variables in the cost of a particular remodel (which can change dramatically if from state to state, contractor to contractor, and even neighborhood to neighborhood) and the trends in your specific region, local real estate agents and contractors are probably your best resources when it comes to finding the features buyers in your area are looking for. It is important to note, however, that remodeling just to follow trends can have serious drawbacks if those trends change quickly! To find the projects that are most likely to add more value than they cost to perform, ask your local pros which features have consistently caught the eyes of home buyers in your area for decades.
3.The Bottom Line
Practicality is always a sound investment. If you know your kitchen's counter space is too limited to cook more than a microwave dinner without a significant amount of hassle, then adding counter space is likely wise. Look for the areas of your home that actually need better functionality and begin focusing your efforts there.
The wide range of remodeling shows, articles, and videos available to today's homeowners have certainly influenced many people to get upgrades that they didn't necessarily need instead of focusing on the basic elements of their homes that actually required attention. It can be difficult to identify the spaces that really need work when you deal with them on a daily basis however, so many professionals recommend inviting a trustworthy friend who has never been in your house before to take a tour and give an outsider's opinion. In many cases, that pair of fresh eyes can spot areas in need of attention much more effectively than you'd ever imagine!