Knowing when to remodel
January 27, 2015
You may want to remodel your home for several reasons. Obviously, you think about remodeling when the house needs upgrading, whether it is a simple renovation such as replacing windows and doors, or maybe redoing kitchen cabinets and installing new appliances. Perhaps you are looking to make your home more energy efficient or bring your home insurance quote down?
Remodel your home at the right time.
No matter what the reason for renovating, the long-term goal of keeping your investment profitable is certainly on your radar.
Your home is an investment, and when you decide to move, even if that may be further down the road, you want to get the most back for it you possibly can. It is easier to sell a house that is up to date as opposed to one that needs a bunch of repair work and upkeep. But just because you are renovating your home doesn't mean it is going to pay out. There are times when putting money into your home will come back to you, but there are also times when it will not.
Supply and demand
Purchasing supplies, whether they are windows, floorboards or refrigerators, can be costly in months when those materials are highly sought after. Typically this is in the warmer months, when most people are typically doing home repair work. For this reason you should plan ahead and purchase your supplies out of season. Even if you don't plan on beginning your project until the summer, purchase your products ahead of time and have them ready to go.
The supply and demand rule is also true for contract workers and other labor. Hired hands will be more expensive when more people want to make use of their skills. Don't compete by paying significantly more than you want. Instead, have your work done off-season. Now this may not be possible depending on your project, especially if you are going to be removing windows or need to have people moving in and out of the home while it is cold outside.
Be aware of your location
If you live in a neighborhood or building where everything is relatively close in price, trying to exceed that by a great deal may not be in your favor. For instance, if you stick to low-cost renovations that put your home as the frontrunner in price, but also the nicest in terms of amenities, then you are likely to make up that cost. However, if you invest a significant amount of money and build your home up to the point at which it no longer belongs to the area in which it is located, this could be a problem. The same applies to a unit that is out of place with the rest of the building.
You have to consider not only how efficient or how modern the home is after the renovations, but also the neighborhood or location in the city in which your home is. Just because the home is nicer than before, if the area isn't up to par, then it will be difficult for you to reclaim that investment.
All in all, homeowners who tend to see the greatest return on investment are typically those who have installed a new front entrance or made energy-efficient improvements to the house. Much of this is due to location.
When investing in your home, do it for the right reasons. Most people don't have money to just toss away on a hopeful project, but if you plan your renovations correctly you can see the return on your investment in the long run. Remodel your home for the right reasons, at the correct time and see the biggest return.