A lot of people believe that doing some home renovations is always a great decision. However the old adage of “what you put into it, is what you will get out” isn’t always the case. If your home is looking for a bit of a refresh, be mindful of where you allocate renovation dollars to ensure you have something you will enjoy as well as something that will pay off in the long run.
Remember there is value in living in your home.
If you decide that $10,000 kitchen counters make you happy, there is value there. However, that value doesn’t always mean that a new owner would find $10,000 worth of value as well. Sometimes homes are purely investments. They are places to live, make memories, and gain equity but rarely do improvements provide a dollar for dollar return on investment.
There are many reasons as to why, but the main one is that your tastes very rarely match the tastes of anyone that might purchase your home in the future. Plus, if the improvements aren’t completely brand new, then it is like driving a new car off the lot. Depreciation will occur almost instantly once that improvement is no longer “new”.
Pay attention to the permit process.
Even if you are a do-it-yourself-er, getting the proper permits can be essential to ensuring any future buyers see your improvements as true improvements, rather than a weekend project done on a whim. Some small projects may seem inconsequential but making sure your renovation dates are updated within the county assessor’s office are incredibly helpful when it comes time to sell.
Keep improvements classic.
It can be easy to fall prey to trends. Whether it be shiplap walls or the pantone color of the year, design trends are a great way to keep your home modern. However, it is recommended to follow trends in your more disposable design items such as furniture, throw pillows, and art work. If you keep the overall design of your home classic and simple, you will be able to update trends easily without losing an aesthetic that could appeal to many buyers.
Renovations are a great way to show pride in your home and keep it sales-ready. However, it is best to keep your renovations subtle and classic to ensure you get the most bang for your buck when it comes time to sell.