By the time you read this, I will be married and lounging in the sun on my honeymoon! This also means that I will be moving into a NEW house when I return and making some major changes…to the house that is (wink, wink)!
My fiancé bought a house right before we started dating and he didn’t quite go about buying a house the same way that I would. The house that he bought has a huge garage (of course), outdoor basement access and a big deck for grilling and having family and friends over. Now that’s perfect in some aspects, but what he didn’t notice is exactly what I DID—a yard that needs a lot of work, a house on a busy street and a kitchen that has “potential”—but the particle board cabinets will HAVE to go!
So now the challenges begin. The first word that comes to mind is REMODEL! BUT just like I am finding out…you should do your research before you start dishing out the cash.
Nearly every homeowner has a wish list; but one thing is certain…completing any item on that list comes at a cost and you may start to wonder if it’s all worth it. When it comes to remodeling, every house has its own story but there are a few general rules of thumb.
- Don’t remodel your bathroom if the exterior of your home is in need of repair—such as missing siding, a broken window, etc. Maintenance comes first, and then come your design wants.
- How long you plan on living in the house makes a big difference in where you should start with your remodeling plans. The project might not make sense if you plan to sell your house in a few years. Moreover, your family’s needs may be very different in a couple of years. If you plan on moving in 3 years, spending $40,000 on a new basement isn’t a great idea. It takes time for your home to appreciate and you won’t get your money back when you sell your house.
- Consider where you live and who lives next door or around the block. Explore the current market trends in your neighborhood and the sales price of houses with similar square footage. If no one in your neighborhood has granite countertops and ceramic tile floors, then you probably shouldn’t waste your money because you won’t get it back when you sell. Of course keep in mind that this IS your home, and if you plan on staying there for 20+ years, then doing what you want and what you are going to love IS worth it!
- One of the best ways to avoid a pitfall is to learn from the experiences of others. Talk to your neighbors, friends and family about projects they have done to improve their home and the details involved.
- If you plan on selling, don’t invest in a project that is too unique to you and your lifestyle. Remember that not everyone wants a deck that is larger than the yard.
- Another mistake many homeowners make is starting with a remodeling contract instead of a budget. Make sure you do the research to find out how much materials and labor will cost, and gather as many quotes as you can to compare estimates. Be positive that it fits in your budget and then make sure you have a written contract and that everyone agrees on the work to be completed and the length of time it will take. If you plan on putting an addition on your house, here’s a dollar and cents way to look at it—divide the total cost of the home improvements by the number of square feet of the addition and then compare that number to the cost per square foot of what homes in the area are selling for. That will help you decide if you are doing or spending too much.
Chances are your remodeling project will cost more than you expect so consider taking out a home improvement loan and exploring your financial options. Sitting down with your mortgage representative and real estate agent before doing costly home improvements is a good idea. They can help you figure out which projects will help increase the resale value and which ones will make the house tough to sell.
These are also great reasons why, when buying your home, you should pick your house carefully. Think about what you would like to change and a timeline of when you would like to get it completed to ensure that you are making an intelligent decision and that you are getting the most value for your dollar.
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