Solera Home Improvement provides remodeling services in and around the city of Sunnyvale, CA
Home Remodeling – Sunnyvale – Does Remodeling Make Financial Sense?
If you are remodeling your home because you want the improvements for you and your family and you plan to stay in the home for many years to come, this article does not pertain to you.
This article pertains to you if as a fairly large part of your remodeling project, you wish it to enhance the value of your home and you are thinking it will allow a higher sales price when you do eventually sell.
From a purely financial perspective, you need to gather and compare the following sets of numbers:
- If you sold you home today, as is, what would you expect to get?
- If you bought a house in your neighborhood similar to what you will have after your remodel is complete, what would you expect to pay?
- What will it cost to remodel your home from what you have to what you want?
- If you bought a house in a different neighborhood similar to what you will have after your remodel is complete, what would you pay?
By comparing these numbers, you can decide which course of action makes the most sense for you:
- Do nothing.
- Sell here and buy there.
If you will recoup at least ninety percent of the value of the remodel, remodeling makes financial sense.
However, there is one important caveat to keep in mind.
If your house is less valuable than other homes in your neighborhood, you are very likely to recoup most if not all of your remodeling costs when you sell.
But, if your home is already one of the nicest in your neighborhood, this is no longer true, and if you remodel your home into THE nicest home in your neighborhood, you lose your ability to determine a sales price, because there are no homes in your area to compare to.
Again, I repeat, this is a purely financial perspective on the question, and there are other reasons people remodel.