We will be sharing insight into obtaining a positive return on investment when remodeling your home, and we have a real life example to demonstrate our points as we move through this 4-part series. We also want to focus on weaving your own tastes and style into achieving that return on investment, allowing you to both love the space and profit from it financially. Let’s get started!
We will be moving through each segment in a Question and Answer format. First Question…
WHY SHOULD I CONSIDER THE VALUE WHEN REMODELING?
When undertaking a home remodel project, more often than not there is a belief that you will be in the home for an incredibly long time. It is therefore very easy to justify putting whatever it is you want in the spaces, making design choices based solely upon your personal taste. However….Life Happens. And should you need to sell your home for unforeseen reasons, you want to ensure that you have maximum value in your home. What we believe in providing is a balance – allowing you to achieve and enjoy the feeling you desire, while also providing a level of general appeal should you need to sell.
HOW CAN I STILL MAKE THE SPACE MY OWN WHILE CONSIDERING RESALE?
A core part of our philosophy as a remodeling contractor is providing you a space that speaks to you and your family, and is unique to the aesthetic and purpose you desire. What we have done for the past two decades is create that one-of-a-kind feel while simultaneously balancing the potential resale factor. Our team of experts is able to provide insight into what is both popular and lasting in terms of trends, and we can take this information and blend it with the style you seek.
HOW CAN I TRUST T.H.A. TO CONSIDER BOTH MY VOICE AND ROI?
Our example for this ROI series speaks to this point better than anything else we could say to answer this question. We were able to give this family durable options for functionality, design choices that spoke to the rustic feeling they sought to bring into their home, while still maintaining a general appeal to give them that value back out of the project. The before photos that accompany this installment show where we started. As we look into more detail re: making choices throughout your remodel, we will share accompanying ‘after’ photos that speak to those choices.
HOW DOES HOME REMODELING INCREASE MY HOME’S VALUE FROM A REAL ESTATE PERSPECTIVE?
The simplest way to calculate ROI in general is to divide your gain by the cost to obtain a percentage – this represents your Return on Investment. When looking at our local real estate market, agents are reporting that home buyers are looking to purchase competed homes…that is to say that the style is contemporary, cohesive, and there is not a long list of projects to take on upon buying a house. Therefore, making calculated decisions in remodeling your home can absolutely create a positive return on investment. We work with real estate agents in our area to stay up-to-date on what it is people are generally looking for in a home, giving us the knowledge to guide you through your own home’s remodel.
WHAT ARE THE MOST EFFECTIVE REMODELS FOR INCREASING MY HOME’S VALUE?
A poorly equipped kitchen or extremely outdated bathroom can put a bad taste in a potential home buyer’s mouth – and even with quality touches elsewhere, a poor reaction to these fundamental rooms can cause them to walk away. Making changes in both the kitchen remodel and bathroom remodel to make them aesthetically pleasing and functional will lend themselves to a positive ROI. Considering paint colors and flooring choices that are durable and neutral are also good bets in aiming for that return. Again, providing a home that does not scream “projects, projects, projects” will give the home buyer more confidence when considering purchasing a house. Tackling these renovations while you are living in the home will allow you to actually enjoy the newness prior to selling, and can create the feeling of “home” – while increasing your home’s value, and as a result, your ROI. Another benefit of completing these projects and increasing your home’s value deals with refinancing your home – and the ROI you can receive without even listing your house.
DOES A STRUCTURAL REMODEL IMPACT THE VALUE DIFFERENTLY THAN A COSMETIC REMODEL?
Structural remodels provide a greater ROI only if they are completed to correct function. For example, that wall that is boxing in the kitchen is not helping your home’s value. Creating an open concept flow that appeals to the vast majority of buyers would be a smart structural remodel choice. Other than these functional structural changes, cosmetic remodels are going to appeal most to a buyer and provide you that positive ROI. For example, adding a neutral-toned vinyl plank or hardwood for flooring will signal longevity to an appraiser and increase the value. We believe that understanding these differences – and educating ourselves in remodeling ROI details – is essential to offering the very best service we possibly can. We are not here just to add a backsplash or refinish a cabinet. We want to provide you confidence that you will love your remodeled space, and that a potential buyer will as well should you ever need to sell.
WHY CAN’T I JUST DIY MY REMODEL PROJECTS? WON’T I SAVE MONEY DOING EVERYTHING MYSELF?
It may seem like a good idea to just tackle home remodeling projects on your own. With all of the books, tv shows, and YouTube videos out there showing how to complete everything from building a cabinet to refinishing a floor, it appears from the outset that the resources are there to allow you to DIY. However, what those materials are not showing you is what happens when something goes wrong. Or how long those projects can take when trying to fit them in on the weekends or evenings after work. A huge unknown with DIY is what you will do if the project doesn’t go as planned. If the paint doesn’t go on smoothly, if the cabinet stain starts to chip, or if the flooring starts to peel up. There is no one accountable but yourself, and you are stuck pouring more money into fixing those issues. Working with a professional home remodeling contractor – particularly a reputable, proven one – provides assurance that you have someone who is committed to getting it right the first time, but will also be available to answer any questions or concerns that might come up. Why not trust that the home renovation will be done right the first time, and take the stress off your plate?
CAN’T I FIGURE OUT WHAT THE TRENDS ARE BY LOOKING ON PINTEREST OR IN MAGAZINES?
This is another example of the information being out there, but that is not necessarily a good thing. Trends are ever-changing, and one site might say this paint color is “trending” while another magazine says the opposite. It is an immense amount of information to sift through, and what is popular in one part of the country might not be resonating with homebuyers in the area where your home is located. Ensuring that your home is updated properly, in a way that both appeals to you and the market, is a key component of achieving that positive return on investment. Another thing to consider about doing it yourself based on what you see as “trending” is the time it will take for you to tackle the project on your own. By the time you are able to fit in all of the pieces to your remodel, chances are a trend may have already changed and you are stuck with a decision that made sense when you started, but is no longer the best option. Trusting a home remodeling contractor who is up-to-date both on general trends and the local market is key to positive ROI. A reputable remodeling professional will also get the project done efficiently, allowing you to enjoy the space as quickly as possible and maintain a style that is both current and lasting.
HOW CAN I TRUST THAT THE REMODELING COMPANY I CHOOSE KNOWS THEIR STUFF?
When it comes to our business philosophy, we believe there is power in numbers and community. We partner with Real Estate Professionals, Bankers, and Designers to ensure that we have a pulse on the current home buying and selling climate, and pass that knowledge right on to our customers and their projects. We are constantly evolving and changing due to what we see in the market and will always bring every piece of knowledge with us to your project. We believe in finding creative solutions to accommodate any space or budget to bring remodeling dreams to life!
When we started this project, the family was looking for an updated home with finishes that were durable and long-lasting, coupled with a style that was more up-to-date. We took their ideas and applied them in a way that stayed true to their vision while simultaneously adding value to the home. Thanks to our trusted partners, we are able to access a wealth of information on everything from flooring to wall colors to lighting. Each decision we made for this family served a dual purpose – provide them the vision of what their home could be and create a Return on Investment that was positively substantial. After completing a Comparable Market Analysis through a local real estate company, not only is the family in love with their home again but they walked away from their remodel with greater than a…
100% RETURN ON INVESTMENT WITH AN OVERALL VALUE INCREASE OF $126,338!
We were thrilled to be a part of transforming this family’s home in a way that made sense both aesthetically and financially. Our philosophy in tackling any remodel project is to provide service on every level, not just painting a wall or replacing a counter top, but creating value in a multifaceted way. When you love your home, we have succeeded…and when we can provide the confidence that your remodel has had a positive ROI – that is the icing on the cake!