Remodeling your house: Budget Wise The idea of remodeling may sound easy to most home owners, but remodeling the right way is a lot more complex. Adding square footage or remodeling existing rooms is a great way to increase the value of your home, though knowing how much money is too much or too little to invest isn’t easy. You can over spend on your projects and in the long run get money back to neither cover your investments nor be close to making any profit. If you do end up over improving you are running a gamble to find someone with the same taste as you and willing to spend what you are hoping to make.
Appraiser, John Bredemeyer, advises remodeling your home based off of the value of each room, based on the total value of your home.
See the following example based off a $500,000 home;
Kitchen 10%-20% home value: $50,000 – 100, 000 budget
Master Bathroom Suite 15% home value: $75,000 budget
Bathrooms 5% home value: $25,000 budget
Other rooms (living room, dining room, bedroom) 1%-3% home value: $5,000- 15,000 budget
Patio or Deck 2%-5% home value: $10,000-25,000 budget
You budget may vary depending on many factors like; size, addition or renovation, and cost of appliances and materials. Higher quality will cost more, but keep in mind the value of the room you are remodeling.
The top 3 remodeling projects that will add value to your home are:
1. Kitchen – Kitchens sell homes> Be careful to remodel smart because a $75K remodel may get you the same value as a $50K remodel, thus the importance of using the right company to represent you.
2. Bathroom - A bathroom can be remodeled for well under the cost of a kitchen remodel, but add the same kind of value. This is one room you don’t want to miss when you remodel.
3. Landscape & Hardscape – The outside of the home is the first impression of the rest of the house. If the outside is junky, this could cause you to lose value. Curb appeal is a real thing. Families these days are enjoying their homes and entertaining, a great outdoor space can increase the value of your home more than you think.
If you are planning this remodel project solely based off increasing your home’s value, you need to talk to a qualified remodeling company and consult with local home appraisers or real estate agents to make sure your remodel will meet your perspective goals. The homes around yours will affect your home’s value greatly, remodeled or not. Don’t be afraid to do your homework before your remodel. Contact us today to get a free in home consultation.