With the economy in trouble and home-values in constant flux, many Americans are choosing to stay in their existing homes rather than live out the American dream and move on up to a bigger, better home, even when they have the money to do so. Fortunately, if the home that you’re in right now isn’t perfect and you don’t want to move, there are always plenty of different remodeling options available. And now, is perhaps one of the best times in recent history to have a remodeling project done.
Since the housing market is literally in a depression, contractors that do construction projects are very desperate for work. If you want a new kitchen, a new bathroom, or an addition onto your home, now’s just about the most affordable time in recent history to have one done. Just be realistic about what you can afford and get at least three different bids from contractors.
You should also never remodel home on the basis that it will increase your resale value, because you will almost never make your money back. In December’s issue of Money Magazine, it was reported that a kitchen remodeling project will only net a home-owner 76% of the money they put into the project, and that a bathroom renovation project will only net a home-owner 75% of the money they invest into a project.
Kitchen and bathroom remodeling projects have traditionally been the best “bang for your buck” remodeling projects when adding value to one’s home, but even they don’t pay off. Chances are that remodeling other parts of your home will even net lower rates of return.
This doesn’t mean that you should never remodel your home if you plan on selling it a few years down the line. If there’s something dramatically wrong with your house that would cause any potential home-buyer to cringe and make your home un-sellable, you should probably get those fixed, but be realistic about what actually would drive potential home-buyers away. If you think you’re in this situation, talk to a real-estate agent about what you would really need to do to make your home sellable.
It’s an absolutely wonderful time to start a home-remodeling project, just make sure that you’re doing the project for the right reasons. Remodel your home because you want to and not because you want to increase the resale value of your home. Remodeling can be a pain in the butt to live through, so if you’re going to move a year or two down the line, don’t bother!
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