Many remodeling projects are borne of necessity and reflect the values and needs of the current homeowner, but they do not necessarily add value to the property. Too many homeowners fail to understand this concept and wind up spending money on improvements that will never increase the value of the home should they decide to sell. Which home improvement projects should you consider and which should you avoid at all costs?
You might think adding a second story resplendent with a lovely bathroom and walkout balcony is a perfect way to increase the value of your property. In some cases, you may be right but you have to take the neighborhood into consideration first. What are the homes in the area worth? If your renovations are going to make your property the most expensive on the block, you will probably never recoup the investment. Other improvements that do not automatically add value include:
What type of home improvement project should you consider if you want to add value to your property? Adding a room will increase your square footage, but just remember that you do not want to overdo it. (see above tips) If your home is a small two bedroom in a neighborhood filled with three bedroom units, adding a bonus room will definitely add to the value. Other projects to consider:
As you can see not every home improvement project is created equal. Does this mean you can never have an in ground pool? Of course not, but you have to understand that your $10,000 or more investment will likely be for your own pleasure alone and you will most likely not recoup the cost if you sell the property.