Remodeling return on Investment?

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Remodeling or doing an addition to your home can be costly and involves a serious investment in time. Many of Soulliere Constructions customers want to change their home, but, would also like to sell the home at a later date. Most home owners hope that once the work is done, the home will increase in value and recover the cost of renovations. Sometimes this is true and sometimes it is not, as with everything else in life there are variables to consider.

Additions

Brick Home Addition with Windows

One of the most common questions that we hear is will the cost of renovations be recovered when the home is sold. There is not a standard answer for this question however time has proven which projects have the best chance of covering the cost. Adding square footage always increases value, simply put a 2500 sq. ft. home is almost always going to be valued higher than a 1200 sq. ft. home even though both may be beautiful. One factor that can change that pattern is location. If the smaller home happens to be waterfront for example it could well be worth more than the larger home when sold.

Kitchens

The kitchen is often described as the heart of the home. Families, friends and other guests almost always seem to gather in the kitchen area. Creating a beautiful open concept kitchen with the latest in cabinetry and appliances, along with custom counter tops and properly placed lighting can dramatically change the homes appearance and functionality. Kitchen remodels will help sell a home faster and at a better price. If the home is sold 5 to 7 years after the renovations are complete most if not all of the cost can be recovered. Now that being said if a customer wants to put a $75,000.00 kitchen reno into a $100,000.00 home the cost will certainly not be recouped in full because the amount of money invested into this property will exceed what the home can appraise for.

Bath rooms

Bath room remodels are another renovation area that are in high demand. There is no doubt that beautiful baths can help sell a home. High end master bathrooms can really add beauty and functionality to a homes master suite. Yet again this is an area where the selling value of the home may never re-coup the cost of renovations. The cost of doing a major bath renovation can be driven to high, do to the finishes chosen. For example some tile is $5.00 per sq. ft. and other styles can be $20.00 per sq. ft. as you can see this can drastically increase the cost of the renovations.

Final thoughts

When doing renovation projects home owners have a lot of factors to keep in mind. First are they planning on staying in the home for an extended period of years? If the answer to that question is yes then spending a bit more money on the project might not be a big deal. On the other hand if the homeowners are planning on selling the home and moving on in the near future, the amount invested in renovations needs to be watched closely so that it does not exceed what the home can sell for.

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