A recent industry survey reports that home improvement projects typically do not pay a profit upon resale of the home; in fact, on some projects, you may only recoup 50% of the costs. Yet many homeowners go ahead with additions, renovations and replacements anyway. Perhaps you are considering a home refresh; consider the following to determine if you should go ahead with the project.
Real estate agents generally advise against making your home too quirky (purple walls, for instance) prior to selling. However, some changes will almost certainly make the home more attractive to sellers. Replacing worn wall-to-wall carpet with stylish hardwood like the monarch plank windsor collection can transform your home’s appearance. You may appreciate the update too; remember if you are planning to stay in the house for a number of years, your own satisfaction is the most important pay-off.
Some home improvement projects are simpler than others. Many people can do a fine job painting a wall or changing out a light fixture, and can save a substantial amount of money by doing the work themselves rather than hiring a painter or electrician. However, some jobs are best left to professionals and a key to a successful remodel is knowing which projects to take on yourself and which to hire out. Be honest with yourself about your skill level—you may be able to tile the kitchen backsplash but attempting the entire shower surround may be too ambitious. Seeing a shoddy job in one space can make potential buyers wary of the whole house.
Many people go into debt for a remodel, often using the home’s equity to pay for the project. This may or may not be a good idea, depending on the interest rate and loan terms. A good guideline is to have enough money set aside for at least half the projected expenses; then if you only recoup half of your expenditure you can still cover the debt.