Home > House & Home > Resale Value

Home Improvement and Property Resale Value

Thinking about remodeling your home? You may be wondering if it's worth the effort. What effect will the project have on your property values? Remodeling your home has many advantages: it creates space to meet your individual lifestyle needs, it updates an old or worn look, and it can increase your property values. But how much you benefit financially will depend on several factors: the cost of the project itself, the type of project you choose, the status of your local real estate market, and the region of the country in which your home is located.

According to Robert Irwin, real estate broker and columnist for Real Estate Journal, remodeling projects such as kitchen and bath remodels or floor covering updates provide the best return on investment. Minor kitchen remodels, such as updating countertops and cabinets or replacing old appliances may not add as much value to your home appraisal but may mean a quicker sale. On the other hand, adding a second full bath to a home with only one is more likely to increase your property value. Flooring also has a big impact on home appraisal.

Remodeling Pointers to Improve the Resale Value of Your Home
Whatever remodeling project you choose, careful planning and patience are important. Here are a few tips to remember when planning your remodeling project:

• Define the changes you want to make. Sketch out your remodeling plans. If you're adding space, determine how the space will be used.
  
  
• Assess your situation. Do you have the necessary funds? How long do you intend to stay in your home? Does it make sense to remodel or should you consider moving?
  
  
• Choose a reputable contractor. If a contractor is required by your state, ensure that the person or company you select is insured and licensed.
  
  
• Establish a budget. Decide what you can realistically afford. If you are remodeling to sell and want to increase the value of your home appraisal, your budget should not exceed the amount of the expected increase.
  
  
• Get a proposal from your contractor. The proposal should include the cost of the project and the types of products to be used.
  
  
• Obtain a written contract. The contract should include a description of the project, time line, payment schedule, and types of products to be used. Make sure everyone agrees on the contents of the contract.
  
  
• Get permission. A legal permit is required before you can begin making major changes to your home. This permit assures that the project meets local building codes and safety regulations.
  
  
• Take a deep breath and hang on! Remember that remodeling can be disruptive, dirty and noisy. Plan for problems to occur and stay focused on the end result.