After some thought and consideration, you are finally planning your home remodeling project! How exciting! However, we have one question to ask you; have you thought about how much a remodel can increase the value of your home? It’s an important question! The goal of this blog post is to illustrate how your decision to remodel can increase the value of your home.
As a rule, most home renovations will not pay for themselves in equity right away. That’s why it’s important to take the time to enjoy the changes to your home and to let your home appreciate in value.
The following are some questions you should consider:
To help you better understand and distinguish where you stand on the sliding scale of what the return on investment will be on your home remodeling project, let’s dive right into two customer case studies.
The Millers have lived in their home for the past 25 years. Over this period of time, they have raised 3 children who have since moved. Although their children no longer live with them and now have children of their own, they are attached to their home and very much invested in staying in the same neighborhood. They have friends in the neighborhood who they would hate to move away from. They are also in a great location for all the activities they love to enjoy. One element that influenced them to consider remodeling, is their love to host holiday gatherings with their entire family. With more grandchildren on the way, they really want a space where everyone can comfortably fit when hosting. Instead of waiting, The Millers decided that this was reason enough to remodel their home and create a space that everyone could enjoy.
After the Millers took the leap to remodel their home, 10 years passed by. At this point in the Millers’ lives, they have gotten great joy out of their home. Their newly remodeled space has provided them the ability to host the family gatherings they had always envisioned. However, they have come to a time where they realized they would like to downsize, as they have passed hosting the Holidays off to their children. In this situation, The Millers put their home on the market, and it sold for a good price. With the remodel, their home is up to date with current trends that appealed to those looking for a space to host family. They also appreciated that they were able to recuperate all of the renovation costs.
Another important thing to keep in mind is the location, location, location. For COCOON, most of our projects are located in the Greater Philadelphia suburbs. Over the last eight years, this area has increased in value greatly. Ultimately every neighborhood is different. Therefore it is important to research your local market before investing time and money in a large home remodeling project. Specifically, the Millers realized that over the past couple of years their neighborhood increased in value. This information helped them decide that remodeling for resale value would make sense.
Just like the Millers, the Roberts’ have also lived in their home for 25 years. They too have children who are grown and have families of their own. Even as empty nesters, they still love their neighbors and community. For the past 25 years, the Roberts’ have been hosting family reunions at their home. As you can imagine, their family has grown over the years with the addition of their many grandchildren. Because their space is so small, the Roberts have no longer been able to host. Missing the responsibility of hosting, their dream was to remodel allowing for more space for events like this.
Unfortunately, the Roberts’ do not feel as though investing in a remodeling project makes sense for them. Instead, they decide to not expand their existing space. Although this decision could make sense for your family, one main idea to think about is the potential everyday enjoyment you could be getting out of your new space. Not only could the Roberts’ have hosted more if they remodeled but, they also could have enjoyed their renovated space everyday.
Ten years pass, and while the Millers have remolded their space, gotten to enjoy it, and gained precious time hosting holiday parties, the Roberts have made no updates to their home. Because they did not remodel 10 years prior, they have decided it is time to put their house on the market and move into a home that provides them with the space they have always wanted. When they sell, however, their home is on the market longer for the neighborhood and area they reside in. When the Roberts get an offer, it’s discounted for the buyers estimated cost of renovation. The Roberts not investing in a remodel played a role in the return on investment of their home when trying to sell. Unlike the Millers, the Roberts were unaware of the value of their neighborhood, and their decision not to remodel negatively affected the value of their home during resale.
No matter the project, we strive for our customers to love the homes they live in for years to come. If you are looking for more information on when it may make sense for you tackle your next home project, Contact COCOON to learn more about our 3-stage experience, Remodeling Reimagined.