What are Renovations Costing You?February 15, 2020
Renovations are on the rise. Looking at a lot of research, including this recent study, three out of four homeowners are in the process of planning to renovate their home. 2020 may just be the biggest year yet, but as the VIC Underpinners team knows… the bigger the renovation, the bigger the need for a healthy rainy-day fund.
If you’re looking to put your home on the market, a new bathroom with a copper tub lined with tin or a kitchen with one of the latest and greatest ranges on the market will increase the value. Unfortunately, not everyone has Jeff Bezos’ or his ex-wife’s income.
Kitchen and bathrooms tend to be more popular, from an aesthetics standpoint, but they can – and should – be personal to your preferred style. Here’s the trade-off.
The VIC Underpinners team recommends a few things to find the right balance between profit and character: You need to strategize, focus on the areas of your home that you can maximize the return on your investment, and be realistic about the amount you’re able to put towards the project.
According to Remodeling Magazine’s annual report, nine out of the top ten home renovations investments are made to the exterior of a home. The same report showed that manufactured stone veneer (examples here), led all renovations with a nearly 96% return on investment in resale value. Coming in second? A surprise – a new door on your garage. The return on investment? 94.5%. A decent kitchen remodel was third, only yielding a 78% return. But note, the key word here was decent. This can be a subjective area based on opinion and style, so it never hurts to consult with an expert.
Focusing your time and money on new windows, a deck, front door or siding, will increase the value and appeal when it comes time to sell. It’s important to know that not all renovations need to break the bank and your wallet unless you plan on enjoying that leopard wallpaper for the next thirty years. (Hey, who are we to judge?)
Always think through the lens of a potential buyer, and not just one in the next year or two. What are the timeless touches that you can add to the home that you love so much, that will give it that longevity, while still allowing you to be creative? What about the home appealed the most to you before you purchased it? Being creative and strategic with your money and renovation choices will go far as long as you invest wisely.
No matter the project or budget, VIC Underpinners is here to help. If you’re curious to learn how we can bring your dream renovation to life, reach out to us today.