Is Remodeling Worth the Effort?
Remodeling: What the Experts Say
Architect and builder Bob Formisano is the founder of Home-Cost.com and leader of the preservation and repair of the historic Ford homes in Dearborn, Michigan. Bob has a few tips when thinking about the ROI of remodeling:
When deciding whether to undergo a home improvement project, you can consider these 3 things:
1. How your project impacts your home's appraised value
2. How long you plan to be in the home
3. How strong the resale market is in your area
From PBS's Hometime series [http://www.pbs.org/hometime/house/resale.htm]
1. Keep in mind the tastes and needs of future owners. Remodeling magazine releases an annual report, evaluating the return on investment for a variety of home improvements.
2. Investigate 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 with a cash-out refinance or an equity loan? Factor in interest rates and fees. What is the cost of moving versus the cost of living through remodeling? What about the cost of a new house with the features you want? Some people find remodeling cheaper than buying or building something similar.
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%
It's Okay to be Selfish
In an effort to increase your home's value, remodeling is often the first port of call and a bonus is that you can also tend to your own needs. Resale isn't everything if you're not happy living in your own home. When you invest in a custom designed closet from California Closets you are investing in your quality of life as well as your home.
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