“Should I renovate my home?” — it’s a big question for homeowners across the country. Renovating or remodeling your home offers benefits, but it also requires a chunk of your change and time. That’s why it’s essential to consider the pros and cons of a home renovation or remodel before committing to the project, especially if you’re planning a DIY home renovation.
What to Ask Before Remodeling Your Home
You need to ask several questions before starting a home remodel. If you’re serious about proceeding with the remodel, ask yourself these questions:
- Who’s the remodel for? A home renovation is either for you or for a future buyer. Who the remodel is for influences everything from the design to the budget. If the renovation is for you, it’s still important to consider how your remodel may affect the future value of the home, as it’ll likely become someone else’s in the future.
- What’s the cost? Cost is a crucial factor in home remodeling. It gives your project boundaries, as well as influences your decision to use a professional or do a DIY home renovation. Get price estimates before spending any money on your project. Seeing the full cost may lead you to adjust or revise your plan before obtaining a loan, if necessary.
- Who are you hiring? Even a DIY home renovation may require you to hire certain individuals such as a plumber for a bathroom renovation. Speak with the people you’re interested in hiring and ask for estimates. Add these estimates into your project cost to get a more accurate picture of your overall expenses.
- How much value will it add? You’ll find this question is the most influential when considering whether you should remodel your home. If your intention is to remodel for a future buyer, review the 2017 Cost vs. Value Report from Hanley Wood to see how much value your project would add.
- What’s the return? Analyze your home’s remodel from two perspectives: how much it’d add to your home’s value and how much of a return would you receive on your investment. A correlation doesn’t tend to exist between these two factors. A two-story addition, for example, raises your resale value by more than $100,000, but it only recoups around 71 percent of your costs.
- What’s the construction time? The length of construction is important because if you’re hiring people for your home remodeling project, their rates could rise if they’re paid hourly. Plan ahead and ask your team what the minimum and maximum time would be for their work. Their estimates can help you budget for any price fluctuations.
When you ask these questions, you may find your home renovation project needs revising. Your plan, for example, may invest a significant amount into a bathroom addition, but the budget is disproportionate to the amount you’d receive when selling your home.Reviewing the cost, value and return of projects can also help you prioritize projects if you’re doing a home renovation, as well as adjust the budgets of each plan to better match their return and value.
Which Home Remodeling Projects Take Priority?
Your home’s condition influences which remodeling projects take priority. Insulation for your attic, for example, offers the greatest recoup of your cost, but if your attic is already insulated, it’s not a relevant project.So, which projects are the most beneficial — and are they DIY, or do they require professionals?
Valuable DIY Home Renovations
Bathrooms and kitchens are some of the most valuable DIY renovations you can complete. The remodel doesn’t have to be significant, either.Replacing the bath, toilet, countertop and sink can all add value to your home. Even new tile can increase your bathroom’s value. Bathroom remodels offer more than a 50 percent return
and can increase your home’s value by at least $10,000 or as high as $40,000 in the Middle Atlantic. Kitchens offer a similar increase in your return on investment (ROI) and resale value.Upgrading your water heater is also valuable to your home’s price and your investment. You’ll want to purchase a tankless water heater for the full ROI benefit because it offers potential homeowners a cost-effective and eco-friendly option. For this DIY home renovation, you may want to hire a professional because you need to install a new gas and water line.
Valuable Professional Home Renovations
More home remodeling avenues open when you’re able to hire professionals, as some projects require comprehensive knowledge of plumbing and electrical work.Updating your central air system can provide a 10 percent increase in your home’s value
, which is around $25,000 if your home’s sale price is $250,000. The average cost of a central air system is between $6,000 to $15,000, which gives you a minimum return of $10,000. A new central air system is also an incentive for buyers because of its energy efficiency in comparison to older systems.A new furnace is also a smart home remodeling project, especially if yours is older. Like an updated central air system, a newer furnace offers greater energy efficiency, which provides you and home buyers with lower energy costs. An older furnace can have the opposite effect because buyers anticipate that they’ll have to replace it soon.Whether you’re interested in a DIY home renovation or professional remodeling project, both offer valuable benefits to your home’s value. It’s important, however, that you prioritize your projects and adjust their budgets to ensure you get the best ROI for your efforts.
Home Renovation Assistance
Home renovation projects that require professional help can prove a challenge, especially if you need multiple professionals like an electrician
or technician to install your tankless water heater
or central air system
. At Haller Enterprises, our experienced multi-specialty team offers more than 30 years of experience when it comes to home remodeling projects.Learn more about how we can assist with your home renovation by contacting us
today. Also – feel free to check out previous installments of our “Homeowner Series” below: