Don’t Renovate Your Home Until You Read This Article!

Are you thinking about making some changes in your home? Here is a guest article that can help you save time and money on repairs and renovations. I hope it helps you save money!

Home renovation has become an extremely large market over the past decade. In the resale market in North America there are a plethora of aging homes that are both undersized and badly in need of both structural and cosmetic updates. Many current home owners are choosing to renovate and stay in their established neighborhoods rather than purchase a new home on a postage size undeveloped lot in a community that most likely still has ongoing construction .With all of the media attention, inspiring home design and improvement shows we see on television each day, it’s hard not to get the renovation bug!

The problem is that many homeowners catch the bug and spend thousands of dollars on their aging home only to find that they virtually make no profit on the work after selling. Or even worse, that their hard earned money has all but been swallowed up by the renovation costs. As a renovator (at http://ottawageneralcontractors.com) many of the clients ask us as for affirmation that renovating their home before they sell makes the most sense for a good return on investment, and a higher resale value when it’s time to put the house on the market

So the question remains “should we renovate?”

1. You need to do a serious market evaluation and compare your home with what is on your street and area. If you are one of the nicer homes on your street, then you have already hit the peak of your market potential and it unlikely that you will get any money back from new renovations. In this situation renovating may not make sense. However if your home is assessed at a much lower price than the comparables on the street it is likely that your renovation dollars will add to your bottom line when it’s time to sell.

2. Timing should also play a factor in your decision to renovate. One of the best times is when re-financing or financing your home.  When you have some equity built up in the home you can liquidate some of it at the time one renews their mortgage, to go toward renovating. Same thing if you are buying new and have more than the minimum down-payment.

3. The best investments when renovating are usually in the shared living spaces of the home particularly: Kitchens, Bathrooms and Basements. Although these types of Reno’s tend to be more costly the return on the investment tends to be much higher. Updating of outdated colors and finish materials tends to be less costly but can also return a high yield when it comes to resale.

So when you are trying to decide if renovating makes sense in your home before you sell, take the time to consult professionals about the costs involved and what the potential for return on the renovation is. Decide whether the renovation in mind brings any additional value to your home when it’s time to sell. Don’t get carried away with unnecessary renovations that may actually take money from your pocket.