Financial Considerations When You’re Ready to Remodel Your Home

Like many homeowners, you may be getting the itch to remodel or improve your home. Everyone has different reasons for doing this, and every person has different ideas and preferences for what changes to make. Before you make home additions, think about your budget and how the project will affect your short- and long-term financial picture.

What’s the Return on Investment?

You know that making home additions will require a big financial commitment. You want to get the most out of what you spend—both in your pocketbook and in the enjoyment of the final product. Some remodeling efforts will yield a bigger return than others. Typically, improvements to the kitchen will yield the biggest returns, as this is one of the most frequently used rooms in the room. Master bedroom improvements won’t be as big of a return for you.

How Long Are You Staying?

Some people do home improvement projects because they’re moving soon and want to list the home on the market for as much as possible. Renovations can be attractive to prospective buyers. If you’re planning on listing your home, it may make sense to do those projects you know will increase the value of your property. You wouldn’t want to spend thousands of dollars, only to see your home’s value stay the same or only go up slightly. On the other hand, if you think you’ll be in the home for several years more to come, you may want to focus on those projects that you need for yourself more.

Think About the Look From the Road

Too many homeowners focus on the interior but neglect the exterior of the room. A potential buyer’s first impression will likely be what the home looks like from the outside. Improve your yard, replace the siding, repair the walkway or porch. These improvements could pay big dividends.

Make sure you’re wise about your home additions. Follow these guidelines before you start a project.