From Margaret Everton on May 12, 2010 in Tools and Tips
If you remodel your home, you’re probably hoping that you’ll get your investment back someday. Unfortunately, a lot of home renovations today actually decrease the value of a home. Here are 5 tips on how to remodel the right way and still be able to cash in.
#1 - Fix what’s broken, not what’s fine.
The temptation in renovation is to upgrade existing features or install some new bells and whistles. However, the best financial feedback is going to come from actual home repairs. If your roof is leaking, it doesn’t matter how comfortable those heated bathroom floors might be. Focus on repairs first.
#2 - Don’t add on. Remodel.
Big houses are no longer in. Before you bust out an exterior wall and add a few hundred square feet to your home, think long term. A smaller house with a better interior is the more budget-friendly alternative to a bigger house.
#3 - Go green when you can.
The trend in remodeling is to go green. It’s an outstanding idea. Not only will you save money instantly, but you’ll also make your house very appealing for the next potential owner. Eco-friendly upgrades such as Energy Star appliances, additional insulation, and energy-efficient windows are a big come-on. You get tax credits and major long-term savings.
#4 - Add capability, not cool.
Another alluring renovation project is the appeal of gadgets. Installing home stereo systems and theaters may be awesome, but are not necessarily the best choice of upgrade. Within a few short years, the technology will be totally different. The better option is to add capability to your home. Run cables, Ethernet ports, and more outlets instead. Capability is better than cool.
#5 - Play copycat.
Keeping up with the neighbors is a great way to ensure that your house will stay within the sellable range for the long term. For example, if a kitchen renovation is the trend in your subdivision, you may just want to jump on the bandwagon. When it’s time to sell, your house should be within the range of the other houses in the area. Photo Credit: baths UK, Charles & Hudson & Wallet Pop