Remodeling
Success 101

Q: What remodeling projects deliver the most value for the money?

A: Many factors work into determining the value (or "payback") of a given remodeling project including the following among others: the acceptance or novelty of the project in your geographic area, whether the homes in your neighborhood are comparable in size and features, and how soon after the project you plan to sell your home. Future issues of this newsletter will explore the "cost versus value" debate, but the projects with the best and most consistent paybacks include replacing your exterior siding, remodeling your bathroom, and making kitchen upgrades.

Among the many virtues of remodeling your home, one of the most prominent is the ability to update or remake your living space or curb appeal without the expense and hassle associated with moving to a different or newer home to suit your lifestyle needs.

Sure, any remodeling job costs money, but how does that expense compare to the process of moving to another house? Considering various real estate, utility, and mortgage fees related to the selling and buying of two properties (your existing home and the one to which you're moving), there's also the likeliness of a more expensive home with a heftier monthly mortgage payment (including higher taxes and insurance premiums), the costs of moving your belongings, and probably a few cosmetic changes at the new place.

Even if you need a home equity loan or other financing to pay off the project, your current mortgage holder is likely to offer an attractive loan program with more favorable terms (and less time, hassle, and extra processing fees) compared to a completely new mortgage loan package associated with buying a different home.

The little stuff adds up: While you may have to order in or eat out while your home is being remodeled, that cost pales in comparison to the myriad expenses associated with moving your entire household to a new address.

All of those numbers still don't include the time required to meet with real estate agents, mortgage brokers, and title officers, not to mention to get your house in shape to "show well" and inspire a buyer, search for a new place to live, and pack up and unload all your stuff.

In addition to money and time, there are other considerations to calculate. Even if all of the expenses associated with moving to a different home match up with the cost of remodeling your existing home, you may be giving up precious "intangibles," such as a familiar neighborhood or schools in which your kids are settled.

Other considerations...Is your new neighborhood going to appreciate as rapidly and as consistently as your present location? Will your equity position increase or diminish when you move into your new home? Will the value of your current home increase due to a high-quality remodel?

Add it all up, and you might be surprised to find the balance of even an extensive remodeling project, such as a room addition or kitchen renovation is a more affordable and attractive option than moving to a new or different home.

Warm regards,

info@highcraft.net
www.highcraft.net

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