WHEN CHOOSING TO REMODEL YOUR HOME, THE IMPORTANT QUESTION TO ASK YOURSELF IS: IS IT WORTH IT?
Cost is usually one of the biggest factors in most homeowners’ minds when thinking about embarking on a remodeling project, and many overlook a very important aspect when they start crunching the numbers: return on investment (ROI). Measuring ROI should be taken largely into consideration when trying to answer the question, “Is it worth it?”
The last thing you want to do is dump a boat load of cash into a renovation that isn’t going to add any value to your home and potentially turn buyers away in the future. Not selling your home right away and don’t want to wait to start seeing paybacks? There are improvements that can pay off in energy savings or at least qualify for tax credits.
Replacement windows are one of those improvements that will give you a short-term and long-term return. No matter which way you slice it. If you’re selling– According to CNBC , a $10,000 window replacement project can net sellers an 85% return on investment. Or if you’re staying put–Homeowners can claim a tax credit for the purchase of ENERGY STAR qualified windows, doors until December 2013. For more info on tax credits, click here. You can see a return almost immediately after installing energy-efficient windows by saving on monthly energy costs and putting money right back into your pocket (not to mention recouping your window investment).
A common misconception is that, when it comes to bathrooms, it’s go big or go home time. Not the case. You do not need to make your kids sleep in the basement because you’ve turned their room into a bathroom addition. Not only is that a headache waiting to happen, but it will cost you some major moolah that you will not get back. The best way to see a return on a bathroom remodel is to just enhance the space you have. Take note of the picture above. If your bathroom is on the smaller side, consider converting your tub to a shower to free up some space. A corner shower can give you even more room. Focus the rest of your cash on the details, like the fixtures and accessories. Doing this, instead of trying to add square footage could save you 68 – 78% ROI (via Real Simple Magazine).
There’s a reason why HGTV has a show dedicated to this topic specifically. Your home’s exterior is the first thing that is going to be judged, whether it’s by a prospective buyer, your annoying neighbor, or your own mother. How your home looks on the outside is like a sneak peek of what the aforementioned are about to get themselves into. For example, if your roof looks like the picture above, some would assume that there will be rotting fascia boards or even water damage to your house. If this is the first thing a prospective buyer sees as they walk up the driveway, it’s going to translate in their minds as not only huge dollar signs, but also time and labor they’re probably unwilling to give. If your roof doesn’t look like this (yet), make sure it never will. Invest in a gutter protection system to prevent you, or that potential buyer, from having to spend thousands on roof replacement.
Other remodeling projects that can pay you back big?
- Wood deck addition
- Minor kitchen remodel
- Attic conversion (first you have to insulate!)
Want to know a few examples of home renovations that will result in poor ROI?
- Swimming pools
- Home office remodel
- Master suite addition
Want to start crunching some numbers to decide if your remodel is worth it? Start with a free quote!