Make Money Renovating Your Home
February 2nd, 2007 by moniesDo you love your home? Does your home contain thousands of memories - raising your children, holidays, and weddings? Did your parents raise you in your home - has it been in the family for two generations or more? If so, perhaps you’d like to renovate and modernize your home and continue to live in your wonderful homestead. But if you plan on selling your home, making some much-needed renovations can greatly improve the selling price of your property.
Is it possible to add value to your home through renovations? Answering this question depends on the home and the renovation project, but for the most part, yes it is possible. Stores like Home Depot and other home renovation retailers see billions of dollars each year spent on updating homes. This is a clear indicator of the frequency of home renovations, but lets take a look at some figures before judging the success of a renovation project. As a smart homeowner it is best to plan first; look at how much you want to spend and realistically how much value the project will add to the house.
A typical bathroom remodel costs somewhere around $11,000. Sure this may be a bit pricey for some, but consider that on average that same typical bathroom remodel added just over $11,000 worth of value to the home. After a quick calculation in your head it is easy to see that a homeowner can recoup over 100% of their costs. Projects that take place in other rooms throughout the house show somewhat similar results.
Research printed in the National Association of Realtors and Remodeling magazine shows that most homeowners can rationally expect to recover their home renovation costs if they plan carefully. For example a middle of the road remodel of one’s kitchen costs $43,000 on average and can add value of about $40,000. This is a better than 90% recovery of funds.
A common renovation for older homes is replacing old windows with newer, more efficient windows. In a mid-sized home this would cost about $9,500 and add somewhere around $8,600 of value to a home. In comparison renovating a master bedroom on average would cost $76,000 and recover about 85% of that money. If you are looking for an addition, a family room would cost around $55,000 and return about $45,000, or 83% of the value.
With the help of a well-informed real estate agent, you’ll need to decide what renovations will truly enhance the selling value of your home. For example, not everyone needs a home office in their new home, but everyone needs a bathroom or two! Attractive borders around your kitchen wall turn out to be mere “fluff” if the paint in the dining room is peeling. Your real estate agent will make sure that potential buyers see the essential, quality renovations rather than the fluff.
Author: Sara Green
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