While remodels come with considerable costs, the long-term gains can be significant both in quality of life and financial gain. This is about creating and adding financial value to your home.
You want to make strategic renovations that will keep your home competitive when compared to other options in the same market, especially if you are planning to sell it in the near future. Notice the aforementioned word “strategic.” Financially, it’s best to invest in home renovations that will help your home fall within an acceptable price range for the market. Too few updates, and your home won’t have the wow factor many buyers are looking for. Too many updates, and your home will not fit the price of comparable properties in the area, and it may become difficult to sell. It’s all about balancing the factors, so that the end product is a beautiful home that fits the price demands of prospective buyers.
Planning a strategic remodel requires research and product knowledge. We all know that the end goal is to create value, which is determined in dollars. But there is another concept that I like to focus on, “perceived value.” Consider:
Oftentimes it is possible to find lower-cost products that look as impressive and perform as well as their more costly counterparts. Buyers are unable to tell the difference.
First impressions matter.
Get to know your segment of potential buyers. A Baby Boomer is going to look for different things in a home than a Gen Xer.
Research the type of buyers moving in your area and try to make choices that will fit that group’s needs.
Never use inferior products or sacrifice quality by cutting corners. You want lasting value with a remodel.
Researching prices, materials and new solutions before you install is absolutely worth the added planning. This is where the help of a professional remodeling team can be invaluable. The investment of collaborating with professional designers is worth it in the end.
You can afford to use more expensive products in smaller quantities where it may be a better value for your home. For example, when remodeling a bathroom you could choose an inexpensive tile for the shower surround but add some glass mosaics or accent strips to maximize value. Glass is expensive, but when it is used in small amounts won’t break the bank and will provide an exceptional return on your money.
In the kitchen, hardware, the jewelry of your home, can make a major difference in the look and feel of the room and is much less expensive than replacing cabinetry.
When using hardwood on the main floor, expand the hardwood as far as your budget will allow.
The Affordable Companies is rehabbing a Carmel “investment” home, a project we’ve titled “The Kingswood Transformation.” We’ve worked hard to put all of the advice I’ve just given into practical use. Beginning Sept. 28, the home will be open to the public, so home and real estate investors will be able to view the remodeling project in its entirety. Visit the website: HYPERLINK “http://the-affordablecompanies.com/kingswoodtransformation”http://the-affordablecompanies.com/kingswoodtransformation or plan to attend our upcoming open house to spark ideas on ways that you, too, can create value in your current home or investment property.