There’s no doubt that remodeling your home makes a night-and-day difference in the way it looks and feels. A spacious living room or contemporary kitchen can have a huge impact on your family’s happiness. However, major home renovations may also carry a significant price tag. Is it worth it to invest in a large remodel for an older home? Here are a few factors that can help you decide.
What Are the Benefits of Home Remodeling?
Renovations are designed to upgrade existing rooms, such as by installing new flooring or fixing plumbing problems. Home remodeling goes deeper, modifying the existing layout or adding new rooms. Tearing out a wall to create an open-concept living room is an example of remodeling. What can these types of projects do for your home?
- Added resale value: A brand-new kitchen may make prospective buyers fall in love with your house immediately. Generally speaking, the more desirable a property, the higher the asking price.
- Increased home equity: When renovations add important features, it can raise your equity. This may let you refinance your home loan with lower mortgage payments.
- More enjoyment: Building rooms you love can make the times you spend at home something truly incredible. Few things are as relaxing as an en-suite bathroom converted into your private spa.
- Personalized style: A renovation project lets you put the finishing touches on different rooms, giving them your signature touch. Whether you prefer minimalist, vintage, contemporary or country flair, you can bring every space to life.
- Less stress: Things such as a leaking roof or water damage can be a major pain. Calling a professional for renovation can get to the source of the problem. Say goodbye to leaks and hello to some well-deserved R&R.
You can divide benefits into two main categories: improvements for your family and improvements for resale. Both categories can make renovations worth it. The difference depends on your personal plans.
Does Remodeling Always Make Your Home More Valuable?
The most important factor to consider when weighing the pros and cons of home remodeling is your return on investment. Basically, you need to calculate how much the project will cost versus how much it adds to your home’s value. This is known as ROI. If you spend $20,000 on a kitchen remodel and it makes the price of your house go up by $15,000, the project gives you an ROI of 75%. The higher the ROI percentage, the more sense it makes for you to remodel.
What Factors Can Help You Decide?
First, you need to decide whether you want to move. If you’re not planning on selling your home anytime soon, then you should approach remodeling more from the perspective of quality of life than pure cost. Creating a larger master bedroom may not do a lot for resale value, but it can add a ton to your personal comfort level.
It’s a good idea to schedule a home inspection to evaluate the overall condition of the underlying structure before getting started. Some older homes still have a solid foundation under creaky floorboards. If you detect structural problems or mold, however, it can raise the cost of remodeling significantly. When problems are too deep, it may not make economic sense to renovate instead of moving. Of course, if you have a sentimental attachment to the property, the project may still be worth it to you.
Finally, your total construction budget and credit rating also play a part. Not all big renovations cost an arm and a leg. It’s often possible to add an additional bathroom (which typically boosts home value a ton) even with a smaller budget.
What Parts of the Home Can Benefit Most From Remodeling?
Here are a few popular projects that can have a major impact on home value. These areas usually deliver the best ROI for home remodeling:
- Home maintenance and fixes: Roof, siding, plumbing and HVAC systems
- Kitchen: Quartz or granite countertops, kitchen islands and hardwood flooring
- Bathroom: Freestanding tubs, porcelain tile and spa elements
- Living room: Open-concept renovations
- Exterior: Wood decks, stone patios, trellises and swimming pools
- Room additions: Garage, bathrooms and bedrooms
At the end of the day, only you can decide whether remodeling is worth it for your family. To learn more about home renovations in Houston, TX, contact our team right away. At Hestia Home Services, we’re happy to schedule a one-on-one visit to help you make the best choice.