CHOOSE REMODELING PROJECTS THAT ADD VALUE TO YOUR HOME

There are any number of reasons you might be considering remodeling your home, but as you plan your dream house, it’s important to keep your home’s resale value in mind. Of course, most remodeling projects are primarily about improving your home for yourself and your family. Very rarely is the complete cost of remodeling recovered when a home is sold. Nevertheless, some changes have much broader popularity and therefore much more significant resale value than others.

A customized photography darkroom or a built-in wine cellar could be improvements you adore but may be of little interest to prospective buyers who don’t share your passion. On the other hand, a renovated kitchen or an additional bathroom are very appealing to a broad range of homebuyers and could greatly increase the value of your home.

Enlist Professionals in Remodeling Decisions

With a brief walk-through, a Realtorâ can help you identify those areas of your home where some improvement would have the most impact on its resale value. With his or her knowledge of real estate trends and the features of homes that have recently sold well, s/he can advise you as to what changes to make if you want to improve your home’s salability. Of course, those changes might not be in line with your vision. But if you decide to add that wine cellar instead of the additional bathroom a realtor recommends, at least you’ll do so fully informed.

It’s also important to obtain a home inspection before you begin any major remodeling. By identifying structural problems like water damage or termite infestation before you build a new room on top of them, you can save thousands of dollars in duplicated work. Follow these tips to get a comprehensive inspection:
Beware an inspector in fancy clothes—s/he should get dirty crawling around checking all the nooks and crannies of your home.
Make sure the inspection is thorough—a detailed inspection should take from two to four hours.
Tag along and ask lots of questions—make sure you understand all the inspector’s comments and recommendations. What’s critical? What’s something to be aware of for the future?
It’s also important to look into your home insurance policy before having any work done. Make sure your home is "insured to value"—that any previous changes you have made to the home are also brought current on your insurance policy. Also, consider updating or adding coverage for worker injury, theft, fire, and weather-related wear before beginning a significant project.

Choose a Project with Good Resale Value

Surveys reveal that the changes considered most valuable to the desirability of a home include the addition of an extra room, kitchen or bathroom remodeling, and the added space made usable through a backyard deck or patio floor.

Updating an older kitchen is one of the most valuable remodeling projects you can do. If you sell the home in the not-too-distant future, you stand a good chance of recouping nearly all of your remodeling investment on this project (in some cases, you can even make a profit!). The kitchen is one of the busiest areas of the house, and experiences a lot of wear, so it shows its age earlier than many other rooms. Also, with recent lifestyle trends shifting toward the kitchen as the heart of the home (rather than simply the utilitarian space where food preparation takes place), remodeling a kitchen can give your home new appeal.

If you’re thinking about adding an extra room (and you already have multiple baths), add a family room. Even though your family may be accustomed to gathering in a dining room or den, most homebuyers look for a family room in which to spend everyday time. And, because a family room won’t age like a kitchen remodel, adding it to your home could offer the highest payoff in resale value long term.

Bathroom additions and renovations are also valuable projects, especially if your home was built when a single bath for the entire family was the norm. More modern floor plans almost always include at least two full baths, so adding a bathroom to your older home can do a lot to bring it in line with what buyers expect. Like kitchens, bathrooms age quickly—they get a lot of use, and styles change relatively frequently. Adding a new bathroom or renovating one that looks worn can increase the sale price of a home enough to cover much of the original investment within a year of the remodel.

When you consider projects like these, however, you should also keep in mind the values and characteristics of the other homes in your neighborhood. No matter how popular the remodeling you choose to do, you won’t be able to recover your costs if they price your home significantly higher than others in the neighborhood.

Look Into Remodeling Loans If Your Needs Outstrip Your Resources

When cash is not available, some homeowners turn to lenders for help with their projects. Home improvement loans are available to make the remodeling process easier, whether it be to make much needed repairs, to redesign a corner of the kitchen, or to renovate a home you are considering for purchase. Banks and mortgage centers offer a variety of options to the homeowner, as well, and it is certainly worth examining all your options before starting to remodel.

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Source: Home Radar