If you own a home at some point you come to the crossroads of whether to remodel or move. There is so much to consider with either choice. For example, what is about your home you want changed? Is it dated? Have you outgrown it? Do you just want something different?
Those are three of the primary factors that will have you thinking about moving, but then there are those that tug you in the opposite direction. The emotional attachment to your house and even your neighborhood could be strong. Will you have to sacrifice a great location to find what you can afford? How disruptive would a move be to your children?
As a remodeling contractor, I naturally have a bias toward staying put and making improvements to your home. However, unless you buy new, the chances your next home won’t be “perfect” and you might want changes even before you move in.
If you are making improvements to your home with the expectation that it will increase its resale value note that while that is true, but only to an extent.
Upgrading a kitchen, for example, will definitely increase its “curb appeal” but don’t expect a 100 percent Return On Investment (ROI). Remodeler Magazine publishes an annual Cost Versus Value assessment each year for regions and sub regions across the United States. A minor kitchen remodel in the St. Louis metro area costs an average of $21,000 but increases the home’s resale value about $15,000 (72 percent). An upscale remodel averages $62,000 with a 62 percent ROI.
A midrange bathroom upgrade costs $19,000 with a 61 percent ROI. Expect to pay around $58,000 for a new upscale bathroom but expect only a 48 percent ROI.
Improvements that reap the best bang for the buck: midrange deck, 83 percent ROI; midrange entry door replacement, 84 percent ROI; upscale garage door replacement, 90 percent.
As you can see, there is a ROI on remodeling and will certainly help if you are reselling. Or, it might look so good it might compel you to stay where you are.
See the entire Remodeling Magazine report here.