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Home Sweet Renovation: Making The Right Choices

Which Remodeling Projects Are Worth It?

 Does any of this sound familiar?
  1. Each morning, you and your spouse jockey for position at the bathroom sink – and the shaving accidents aren’t funny anymore.
  2. You dream of a kitchen filled with family and friends, but there’s only room for 2.5 people at a time.
  3. Your 17-year-old daughter sleeps in the basement during the summer because her room has become a sauna – and it’s making her hair too frizzy.

And so begins the quest to get bids for remodeling the laundry room, bathroom and kitchen. Of course, you don’t want to ruin your daughter’s life, so you also seek out a solution for her steamy room.
 
Apparently, renovations are quite expensive these days – and since you don’t want to sell a kidney to pay for them, you need to determine which projects will deliver the best ROI (Return On Investment). Some homeowners choose to refinance their home to pay for their projects – check out several refi options here.
 
The following estimates provide insight into the potential ROI for the scenarios listed above. If you’re planning to live in your house or condo for several years, your enjoyment of the upgrade should also be considered.
  1. The benefit of bathroom updates varies. Homes with only one bathroom can recoup 80% or more of the cost to add another one. However, the ROI is less predictable for homes that already have two or more bathrooms.*
  2. Kitchen updates are often listed as the quintessential renovation – and for good reason. The kitchen is often the heart of a home. In addition to the enjoyment and convenience of an updated kitchen, it produces an average return of 79.3%.**
  3. While your daughter’s frizzy hair may be improved with a new AC unit, you may just need to increase your home’s insulation. Attic insulation pays good dividends with a typical ROI of 116.9%. While this update isn’t highly visible, energy efficiency is important to buyers – and the cost to blow loose fiberglass insulation into an attic is relatively low.***
 
Keep in mind that there are variations based on your community and neighborhood, as well as the cost and quality of the updates themselves. Since remodeling projects vary greatly in their payoff, get input from a local real estate professional or appraiser before jumping in … even if your daughter insists the updates are necessary for her social life.



 
* HGTV
** “2015 Remodeling Cost vs Value” report in realtormag.realtor.org
*** http://www.remodeling.hw.net/cost-vs-value/2016/trends

 
- By Lauren Howey, Sep 22, 2017



 
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