Should I Renovate My Home

2006-11-05

The growth of home stores like Lowe’s and Home Depot as well as all the shows on cable TV about home improvement, renovations are at an all time high. But if you are thinking about selling, not all renovations are welcomed ones. According to Remodeling Magazine, you can expect to regain 100% or more of your investment into a new kitchen or deck. But adding a home office you may only recoup about 75% of your investment. Even worse, some renovations can actually hurt your homes value. Here are a few renovations you may want to avoid.

A Jacuzzi
Having an elegant master bath is great, but a Jacuzzi is not a requirement. According to RealEsate.com, adding a large shower with a rain showerhead and multiple jets is much more appealing to busy baby boomers. Busy baby boomers don’t spend a lot of time king in a bathtub and parents of small children prefer conventional tubs.

Swimming Pools
In some areas of the country like Arizona or Florida, a swimming pool is a necessity. A swimming pool in these areas can add 11% to the value of your home. But in other areas of the country a pool can be a big turn off. The prospect of high maintenance costs and higher homeowners insurance can scare off would be buyers. Families with small children can view the safety hazards as a turnoff and seek another home.

Adding an Addition
Many additions are poorly planned without consideration to how the house will flow once the addition is made. A poorly planned addition may give you the needed space, but could leave your home with little to curb appeal value. How the exterior looks after the addition can make or break a sale. Be sure to avoid poorly detailed additions and do everything possible to match-up exterior materials to make your addition appear as though it was part of the original plan.

Be sure that your addition blends into the neighborhood and doesn’t cause your house to stick out among the other homes. People make the mistake that home values are set from square footage. While square footage is a factor, the values of other homes in your area determine your homes value. For example, if the average home in your neighborhood is 2000 square foot and has a median value of $250,000 and you go and add on making your house 3500 square foot, your value will not increase enough to justify the addition. Shoppers in your neighborhood are shopping there because they are seeking a modestly priced home starter home. You have just created a median sized home and these shoppers are not looking to move into your neighborhood. They are looking in a neighborhood where they have inventory to choose from.

Feeling Trendy
Style is important in a house, but some styles have longer lifespans than others. For the last few years many opted for stainless steel appliances, but peoples tastes are changing and many are seeking warmer finishes. Safe bets include custom panels on appliances to match the cabinetry. Brass and chrome finishes are on the way out, with brushed nickel and oil rubbed bronze finishes gaining in popularity. Do your research on trends and make wise choices, especially if you are remodeling a kitchen.

The bottom line is that renovations can increase your homes value if the proper planning is done. If you are selling renovate for your buyers wants and needs. Talk to your real estate agent for advice on what buyers are looking for. This insight could be the difference in a quick sale or a home being on the market for a long time.

Copyright 2006 Finance News Today. Articles can not be copied, reproduced or redistributed without written permission from Finance News Today. To request reprint permission please email us at info@financenewstoday.com

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