by MITCH DIETZ
Many homeowners take on remodeling projects as both a creative outlet and a great way to get desired space. Also, with all of the bank-owned homes currently for sale, remodeling a home can also be a way to build some sweat equity.
It is often necessary to remodel or make home improvements based on actual needs or just personal style. A careful eye toward resale is important, but some projects are done simply for enjoyment, and won’t help the bottom line.
As the chart below shows, projects such as kitchen and bath remodels, long considered the best investments for resale purposes, are not returning the entire cost of the remodel. One of the top reasons people move is a desire to be in a different location or have a better lot. These are things that a remodel cannot accomplish in any event.
However, for many people who already enjoy where they live, a remodel makes great sense. If you have a great lot and location for your situation, a remodel might be the ticket. Also, rejuvenating a home is often more than a pure financial investment – it is an investment in the way we want live.
If you are thinking of a remodel, I am happy to discuss your plans with you, particularly if it is being done in anticipation of selling. There are smart places to put your money and places that simply won’t add value. In a market like this, it pays to have a strategy!
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