Home Remodeling: What the Experts Say
Architect and Builder Bob Formisano, founder of Home-Cost.com and leader of the preservation and repair of the historic Ford homes in Dearborn, Michigan, has a few tips when thinking about the ROI of remodeling:
Consider these 3 things when deciding whether or not to undergo a remodeling or home improvement project:
- How does your project impact your home's appraised value? Will the additional value of the remodel to your home outweigh the costs of the work?
- How long you plan to be in the home? The whole point of remodeling is so that you can receive enjoyment and benefit from newly done home features.
- How strong is the resale market in your area? You may want to hold off on more ambitious projects if they aren’t financially beneficial in the long run.
From PBS's Hometime series:
1. Keep the tastes and needs of future owners in mind. Remodeling magazine does an annual report evaluating the return on investment for a variety of home improvements.
2. Figure out what the market will bear. Compare the appraised value of your house as it is with the price of houses in your immediate area that already have the improvements you're thinking of making. If you can do the project with the budget of that difference, it's worth thinking about.
3. Evaluate the cost of remodeling versus the cost of moving: How much would a new mortgage be, compared to a cash-out refinance or an equity loan? Factor in both interest rates and fees. What are the costs of moving versus the costs of living through remodeling? What about the cost of a new house with the features you want? Some people find remodeling cheaper than what they have than to buy or build something comparable.
And, finally, from the The National Association of Realtors' [www.realtor.org] 2009 Cost vs. Value Report, the average nationwide return on investment of major remodeling projects:
- Deck addition -- 80.6%
- Major kitchen remodeling -- 72.1%
- Bathroom remodeling -- 71.0%
- New roof -- 60.5%
- Family room addition -- 65.3%
- Master suite addition -- 65.2%
California Closets Remodeling Expertise in Baltimore
Take advantage of the knowledge and experience of our remodeling designers and installation teams. Schedule a free in-home design consultation online or come in and visit our showroom in Baltimore to learn more about how California Closets can transform your bedroom closet, garage storage system, home office and more.