It’s easy for a homeowner to get their heart set on a particular design for a new kitchen or a particular style of bathroom for the master bedroom when remodeling the home. However, a savvy homeowner is going to think about the return on investment that they will get from a remodel prior to executing it. They will consider the question: “Will I be able to recoup my investment when the time comes for me to sell my home?”
In order to answer this question, homeowners first need to think about the other homes being sold in their neighborhood. How much are these homes going for? Will the remodel job a homeowner is planning to do make the home more expensive than what people would be willing to pay for in the neighborhood?
Buyers shop where they know they are going to find what they want. This means that if buyers want a home with a swimming pool, they are going to look for neighborhoods where most homes have swimming pools. Therefore, if your home is the only one in its division that has a swimming pool, it’s likely that buyers in your area aren’t considering pools and may not even know your home exists. It’s actually likely that an over-improved home will be more difficult to sell…
Remember to consider that not everyone has the same taste. Sometimes homeowners include features in their homes that are important to them but that many buyers could care less about. Other times homeowners may make improvements in harmony with their own visions but which may be too radical for the buyers in their area.
Remodeling the home to mask a problem is a mistake. For example, an individual may have a kitchen that’s just too small. This person may choose to install expensive cabinets and counter tops, which is great—they look really nice—but in the end the kitchen is still too small for many buyers.
At the end of the day, when it comes to remodeling the home, homeowners must be realistic, if they’re considering selling in the future. They should make their home generic enough that another individual would be interested in it. When considering remodeling, a good rule to adhere to is to speak with a realtor or lender in your area. Ask them what they would consider to be reasonable updates that would add value to your home without alienating it from the market.