Choosing Remodeling Projects That Increase the Sale Price of Your Home

Too often homeowners assume they will recoup the money they spent on all the home remodeling projects that they made on their real property during the time they occupied it. When they decide to sell their house they are often shocked to find out that they do not recoup 100 percent of their remodeling costs. While recouping remodeling costs shouldn’t be a homeowner’s sole reason for remodeling–often lifestyle or aesthetic reasons are more likely to play into the decision. It still is a good rule of thumb to get an idea of what you might be able to expect to get back at resale.

It will pay off when the homeowner decides to sell, if a savvy homeowner takes the time to do a little research on what remodeling costs will be profitable in the long run before he attempts a major remodeling project. Very briefly, the three most important concepts for the homeowner to remember when considering a remodel is the visibility of the improvement, its relative value to other homes in the neighborhood, and its degree of desirability to the consumer.

The following information was compiled to demonstrate what a home seller can recoup in remodeling costs based on figures provided by Remodeling Magazine and the National Association of Realtors. This information shows what homeowners can currently expect to recoup in their remodeling projects.

Keep in mind that the popularity of some remodeling projects also depends on the regional area of the home remodel as well. For example, siding replacement is not as popular a project on the West coast as it is in the South. Remodeling projects that are done for purely aesthetic reasons, i.e. gazebo’s etc. will usually be viewed by the prospective buyer as a plus but not something they want to pay extra for and therefore, the seller is not likely to recover his expenses.

Furthermore, when considering simple remodeling projects, paint is the most profitable cosmetic
improvement of all. Other examples of profitable cosmetic improvements include new carpets and hardwood floor refinishing, fresh landscaping, new light fixtures, and updated window coverings.

Remodeling magazine conducts an annual survey of the remodeling projects that add the most value to your home. The survey compares how the same 18 remodeling projects affected home values in 60 different cities. The 2004 survey, the most recent, was the 18th for the magazine. According to Remodeling, the top five remodeling projects in 2004, ranked in the order of percent of cost recouped at home resale, included additional bath (102.2%) minor kitchen remodel (92.9% of cost recouped), siding replacement (92.8%), midrange bathroom remodel (90.1%), deck addition (86.7%), and midrange bathroom addition (86.4%).

According to the excerpt above, it is apparent that the seller can expect to recoup costs on remodeling projects that add function as well as aesthetic improvement to their properties. An excellent resource on the subject of remodeling and recouping costs is “101 Cost-Effective Ways to Increase the Value of Your Home” by Steve Berges.

What to Do To Make Your Bathroom Remodeling Project A Success

So have you finally decided to plan for your bathroom remodeling project? Before you start, there are a few advices as well as suggestions you need to be aware of before you actually take any step. The first thing you need to do is start some research. We all have plans in our heads but when we hire a contractor for doing the job then we find that whatever we have planned could not get the shape of any real success. Have you ever thought that what is the trouble behind all this? Well, the major reason is not hiring the right person. This is what many of the people do. No matter what type of remodeling it is, you will have to make sure you hire the right contractor.

Hiring the right contractor or remodeler will not be the only thing to do. You need to convey everything that is in your mind to the contractor. If he does not know what you wish your bathroom to look like then believe me, your bathroom remodeling project will fail for sure.

A good thing is that there are a number of bathroom remodeling companies available nowadays. Even though plenty of them are available, it would be best if you ask your friends, relatives or neighbors to suggest you some remodeler. There are a times when someone we know had hired some services and they recommend us to go for them whenever in need. Asking for referrals can save much of your time. In this way, you will just have to hire that specific person because his or her services would already have been tried.

Whether you are hiring some new services or even the ones recommended by the people you know, it is suggested to check whether the person is credible or not. A credible company or even a freelancer remodeler will always be licensed. Licensed remodeler and even plumbers offer insurance over the services too so that if due to any uncertainty, damage occurs then it could be recovered.

What else can you do to check whether the remodeler is a reliable person or not? You can check his previous work history. There are many contractors who will happily give you the contact numbers of their previous customers in order to know what kind of work they had done lately and whether their customers were satisfied with the work or not. This is a great way to find out whether the services you are about to hire are trustworthy or not. All of this might be a lot time taking but it will all be worth it in the end because you will know that your project of bathroom remodeling will be a success as it will be handled by professionals.

So once you have successfully hired a bathroom remodeler for your project then all you have to do is hold discussions. Tell the remodeler what type of designs you wish to introduce in your bathroom. Make sure you communicate everything. It would be useful to present the idea in the form of a diagram. This will help the remodeler in getting what you want your bathroom to be like. A good remodeler will always give you further suggestions of improvements. He will definitely show you samples of previous work in order to further enhance your idea for your bathroom remodeling project. There are people who just show pictures of ideas from the internet and magazines and think their bathroom will look like this once the remodeling will be over. But that is not how things work. You have to hold series of discussions.

Remodeling Projects That Add Value

Have you been wanting to add a room, turn a closet into a bathroom, revamp and modernize your kitchen, replace appliances, or retile the floor? Remodeling projects can really add to the usefulness and space of your home, but some will add more (and in some cases a lot more) value to your home. Here is what some of the best real estate experts are recommending:

1) Keep within the bounds of your neighborhood – a $50,000 home theatre is neat to have, but if you live in a $100K-$200K neighborhood this will not add much to your resale value or can make it very hard to sell for what you want. You would be out pacing and outpricing your neighborhood. If you are going to stay in your house for ever this is fine (you can do whatever you like then). Look at what your neighbors have or are doing and look at recent sales prices and trends for your neighborhood. A good, seasoned, local realtor can be a big help here. They know what adds value and will help sell for top dollar.

2) Kitchens and bathrooms are key! In every area of the country these remodeling projects are the best at recouping their cost and actually adding to the resale value of your house. Average return on investment 100 – 105%. Energy efficient appliances, stainless steel, new countertops, new sink, paint, flooring, crown molding will do wonders for the kitchen. Only go for granite if some of your neighboring houses have it, else you are again out pricing your house. New fixtures, tub, double instead of single sink, recessed lighting, flooring and paint for the bathroom will catch a buyers eye – less they will have to do to make it home. Tip – when painting go with neutral tones and, if possible, use a expert for tips on colors.

3) Decks, fences, bathroom addition (not remodel). Average return on investment 80 – 90%. These projects can be costly when comparing cost versus value, but recoup enough and add functionality so they are still good ideas. Be sure to use experts for any addition projects as you may have code issues and zoning requirements an expert is better able to meet.

4) Home office, screened porches, refurbished basement, attic bedroom, home office. These projects are a little lower on the average return on investment, 70 – 85%, but they should not be overlooked as they can make your house sell quicker. A screened porch is a must in some neighborhoods and many buyers have now come to desire or even require a home office as current trends show an increase in home offices and the self employed. Also, a home office may be partially tax deductible. Again, the rule is stick with tradition, look at your local furniture stores to see what people like their rooms to look like. Large furniture manufacturers spend millions to find what people want in home offices and such and place their furniture and room settings with this in mind. Don’t go to modern or try something unique, tradition sells. The more unique you make your home the harder it will be to sell it.

5) Game rooms, saunas, pools, bars, upgraded windows, etc… These are projects that are good if you are planning on staying in the home for a long time and don’t care too much about resale value. These projects generally have much lower resale values and will only result in a loss of money. Again, it is best to ask a local realtor what works and what does not.

There you have it – what works and what does not. Keep in mind there are some communities where the norm can be different and it is always best to consult an expert for their opinion. Besides it is free to consult the best experts – real estate professionals.