So you’ve finally decided to renovate and take on the dust, dirt, inconvenience and expense that comes with it?
If it’s because you feel it will enhance the quality of your life or if you’ve always wanted a finished basement or extra bathroom, then go right ahead. But if it’s only because you are planning to sell your home soon and think that renovating will increase its resale value, you may want to consider a few things first.
Studies suggest that most renovation projects do increase the price of a home at resale, however the increase is usually less than the cost of the project.
According to a recent Cost vs. Value Report, homeowner regained:
84 percent of the cost of an upscale bathroom addition when they sold their homes, and 95 percent of a more modest one
79 percent of the cost of an upscale kitchen renovation, and almost 75 percent of a more modest one
79 percent of the cost of a basement remodel (including large entertainment area, full bath and one additional bedroom-sized room)
About 77 percent of a master bedroom suite, whether high-end or mid-range
104 percent of a deck addition
This suggests that you should probably renovate primarily for your own enjoyment. It also means you should accept that your project will most likely only partially pay for itself when you sell your home.
Bear in mind though that one thing the report doesn’t take into account is how renovations affect the marketability of your home. According to most real estate agents, a gleaming kitchen with state-of-the-art appliances, cork or hardwood flooring, stone counter-tops and lots of storage and cabinet space can often sell a house the minute a prospective buyer sees it.
If you are planning to sell your home and want some advice on whether renovating will increase its resale value or its marketability, The Incorvaia Team would be more than happy to help you. Give us a call at 440-879-7130 or email us at theincteam@gmail.com!
