Prioritize Home Improvement and Remodeling projects by budget and value-add basis

Over the past few years, the cost of remodeling homes has increased. Research has actually shown that Americans spend about two hundred billion dollars yearly on improving their homes. There are many factors that might make a person consider remodeling a home. Since remodeling is costly, it is financially sensible to prioritize such remodeling projects first.

Prioritizing entails determining the duration that you intend to continue living in that house and making a list of the remodeling projects that you are considering. Your list should have the most important project at the top. If you are planning on living in the home for a short term, it’s worth considering low-cost upgrades that will most likely appeal to potential buyers, such as replacement of doors or repainting. If your home is long term, you can consider intense projects like bathroom and kitchen remodels.

Determine the value of the home improvements or remodeling

Is the improvement worth it? Some home improvements, like landscaping the front yard, adding new siding or adding some extra living space can increase the value of the home in the long term. However, several factors will determine your ability to recover the expenses that you spent in improving or remodeling the home. The duration that you intend to stay in the house and the type of improvements are some of the factors. Before deciding on a remodeling or improvement project, first consider the long term value and do not assume that by selling the home after the improvements, it will have a higher value.

A recent survey showed that most people remodel their homes hoping that the sale value will increase. If you are among such people, it is important that you first understand national trends. The cost of remodeling or improving is not directly proportional to the costs of sale. For example, a kitchen remodeled at $18000 will return about 75% of the investment, that is about $13000. The same study showed that adding a $1300 steel entry would return $900 upon resale.

Projects that you should be considered

Most Americans remodel or improve their homes in a bid to please themselves instead of future homeowners. If you do not plan to stay in that house forever, the remodeling should be done considering the future buyers. Some projects are not worth the high costs. In order to get best value for resale, improvements should majorly focus on the exterior, the kitchen and the bathroom. However, not all exterior improvements are sensible. An above ground swimming pool adds very little value to the home.

Shop around and make comparisons

Home improvement and remodeling costs a lot. It is therefore important that you shop and compare the different available options. Get at least four bids from price shops or remodeling contractors that will help you in choosing. You should not, however, select the cheapest contractor because he will save you a lot costs. Consider previous projects and see if they were done to a satisfactory level.

It is not true that spending a dollar in improvements will add a dollar to the eventual value of your home. However, by making the right improvements, the value of your home will go up. It is therefore important that you understand which improvements add value. You can achieve this by setting your priorities right, creating a sensible budget and finding a good improvement deal.

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