Whether you are in the house flipping business or if you are looking to renovate your current house, for obvious resale purposes, making sure your home renovation project pays off is known to be an extremely tricky business. It is a line of business that has been growing for years now, but many people often get it wrong. It is true that remodeling your house can boost the return on investment, however, when a house undergoes unnecessary changes it will likely not pay off.
For this reason, it is important to start by considering the fundamentals, which are what renovations you need, and which ones add the most value. By having these two thoughts govern your decisions, you will guarantee that whatever renovations you make in the future will pay off.
Maintenance & Repair
Before you can begin with the renovations, you will need to first start working on the maintenance and repair of your house. This should not be influenced by how long you plan to stay in your current house, as the only factor of influence should be to fix problems as soon as they show. This not only averts more serious problems from developing but can also help a great deal with the costs of your home renovation project.
At the same time, matters concerning the maintenance and repair of your house should be set as a priority, since it would not make sense to spend $20,000 on your bedroom remodeling while you have foundation issues. Therefore, house maintenance and repairs pay off, in spite of them not offering aesthetics. The further you go without maintenance and repairs, the more likely it becomes for you to end up spending a large hefty sum later on.
Always Look to Hire the Pros
A renovation that adds value, is one that has been carefully planned and thought through. Since you will likely start working on the kitchen, bathroom, or other parts of the house soon (like your home office), is it important to not just recognize what you can and cannot do, but also acknowledge the added value that can be brought by the pros. For instance, most renovation jobs that pay off include replacing the garage door, replacing the entry door, adding a wood deck, kitchen improvements, and siding replacement. They are mostly exterior focused projects, which are critical in obtaining for you the appraisal you are looking for. Since none of these jobs are particularly easy to DIY, as they are all seen as large, time-consuming projects, seeking the pros makes sure you get it right the first time.
Consider the Location
An integral part of the planning process includes considering the location of your dwelling or local property area before you proceed with a renovation project. A lot of renovators make the mistake of making too great an improvement, one that well surpasses the standards of your neighborhood. It is important to mention that buyers are on the lookout for houses that sell within a specific price range, with services located nearby. Anything else would defeat the purpose and likely be made immensely more difficult to sell.
However, certain areas may receive special interest from buyers, on the condition that houses are well upgraded beyond others in the area. What works and what does not differ from one neighborhood to the other, may sometimes even differ from one street to the other.
What Does Not Work
There are a number of renovation projects that are found to be costly, and barely worth your while. These projects do not work in that they are not the best bang for the buck. Instead, they are often very expensive, and the return is considered poor. These projects include swimming pools, which come with the added costs of maintenance and repair, while they may even increase your insurance since they create a potential safety risk. You should also steer clear from extravagant upgrades, excessive carpeting, investments that do not show, too much landscaping, and any DIY renovation. In addition, it is best that renovators do not put all their money in one place, and instead, look to spread out the investment across the entire house.
All in all, renovating can be an extremely tricky business, if you do not know what you are doing. However, if you center your focus on the exterior of your house or property type, and make sure that the renovations are appropriate and relevant to the location, all while having already done maintenance and repair across your house or property, your home renovation project will pay off. In order to proceed risk-free, it is best you look to get an appraisal, where you receive the value before and after renovations.