Should You Renovate Your Home?

It depends. Even though Americans spend $400 billion annually renovating their homes, various factors determine whether a specific renovation is a good investment. Those planning to stay more than 5 years in their home may have different reasons for renovations than those planning to sell their homes. Below we evaluate some of the reasons for renovating and how you should go about it.

Planning to Stay 5 Years or More in Your Home

Comfortability or Design

Some homeowners planning to stay in their homes for more than 4 years may want to add new lighting, create more open space, update door handles or add the cozy factor to their home. This helps increase their enjoyment of their home because things are the way they like them. However, if you’re on a budget, renovations to improve the design of your home may not seem practical. It is essential to look at these renovations as only an investment of what you can afford. Should you renovate? Possibly.

Safety Issues

Safety issues can be a significant problem, especially if you plan on staying in your home for a while. Certain safety issues can lead to more damage to the house if not treated in a timely manner. For example, a small ceiling leak could expand and lead to more damage to your ceiling. It is essential to consider how much you could afford on this renovation and make sure you go about it promptly. Should you renovate? Most likely.

Planning to Sell Your Home Within 5 Years

Improve the Home Value

Most homeowners looking to sell their homes within 5 years consider the idea of maximizing their return on investment before committing to any type of renovation. Homeowners must understand what their potential buyers would like and how much the renovation will cost. For example, a minor mid-range kitchen remodel costs about $23,452, and the resale value goes for $18,206 on average. If you are looking to increase the property value of your home, this would not be the best investment because you are only recouping 77.6% of what you initially spent. However, each renovation is unique in its own way, so knowing exactly what return you would get on your investment in a specific market is extremely difficult. Should you renovate? Consult with a realtor.

Conclusion: Consult a Realtor

Whether renovating for safety issues, design, or increasing home value, a realtor can share their knowledge to help you make the best decision possible. A top-rated real estate agent is a valuable resource that can help you determine whether or not you should renovate your home. A realtor has a strong understanding of what home buyers want in a specific location and what it takes to maximize a profit on a home. They could help you evaluate your renovation options that will give you the biggest bang for your buck. 

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If you are looking to discuss some renovation ideas or want to know what renovations will help maximize your profit when you sell your home, you can contact me. I know what buyers look for in the market, and I can pinpoint what renovations are an excellent investment.