Knowing When To Remodel
When it comes to remodeling a home it’s important to keep ROI in mind. Regardless if you are looking to sell soon or just want to make some enhancements to the property, keeping your returns in mind is essential. Each property has a number of core features that must be maintained in order to keep in priced well the properties in the surrounding neighborhoods. Some of the core features are more likely to produce good returns over others and being aware of those can be a big determining factor on how you might want to move forward with a decision.
#1 Start with the basics
Starting with the basics i.e., the critical aspects for the property is where to start when considering any kind of remodeling or addition. Things like having sound roofing, a foundation without cracks, gutters and downspouts that function properly, solid subflooring, and secure electrical wiring are some of the first things to consider. If any of these need attention then it will be best to start there. In order to get buyers financing approved, any shortcomings in these areas will need to be restored to their full integrity. Plumbing and piping are also crucial elements of your property to consider before venturing into a remodel. It’s the basic expectations of the home that should be considered before moving forward with any extensive remodeling. Once these are inspected and deemed satisfactory and “the bones are good” then the remodel should be considered.
#2 Value of surrounding neighborhood
When thinking about remodeling your home, it’s important to check out the value of the surrounding neighborhood. Understanding how to leverage the market value of your property and the prices of recently sold homes in the neighborhood is a big aspect of considering how a remodeling project might produce returns. Just because you undergo a massive remodel of your kitchen, doesn’t mean you will make more money if you are looking to sell. If this causes you to raise your asking price above what the market value is, it may create apprehension among buyers. This is one of the biggest reasons for not getting your money back on the money you spent.
Getting this type of information comes from asking around and conducting the right market research. It’s hard to project what your investment might return if you aren’t aware of what variables at play in the immediate vicinity. Asking what the average return for the remodel you are looking to make is a good place to start.
Emotions are often involved in the consideration process and this is important to understand how it might affect the renovation process. If you don’t understand where your heart is on the matter, then it might be a good time to step back and think about where the real desire lies. In most cases this goes hand in hand with a clear vision for the remodel. If you aren’t quite sure what you want to update and come up with new ideas as you go, this can lead to drastic jumps in remodel costs.
These aspects are important to consider at any point of thinking to remodel your home. Most importantly, taking the time to research and gain knowledge on the best way to get your home at great market value. When you take the time to do this, you'll then be able to know when to sell your home.