5 Home Remodeling Considerations

Monday, June 22 at 10:30 AM
Category: Personal Finance

Before you break out the power tools to remodel your home, answer these five questions.

How long do you plan to live in your home? If you plan to stay for the next 20+ years, then consider the changes that will occur during that time and anticipate the space and other needs the entire time you plan to reside there. Do you anticipate more children, aging parents or any other additions or subtractions to the members of your household? Knowing how long you plan to live in a home will impact not only the floor plan but also the materials you use. If you plan to live there for a long period of time, you may consider spending more on quality materials that will last the duration of your time in the home so you don’t have to remodel again before you move. 
 
What’s the return on investment of upgrades? Appraisers take a home’s square footage and the number of bedrooms and bathrooms into account, among other considerations, when determining the value of a home. If you do remodels that increase the number of bedrooms, bathrooms or/and square footage, then generally your home will be appraised at a higher value. If adding a room or square footage isn’t an option, then check out, “Home Improvements That Make the Most ‘Cents,’” for ideas of which existing rooms make financial sense to remodel.
 
Are you trying to make your home nicer than the neighborhood? If your remodel is far nicer than the other houses on the block, you probably won’t get the return on investment you expect. You actually want your home to be the smallest in the neighborhood because your neighbors’ houses will drive your home value up. Make sure and look at all of your options because it may make more sense to move to a nicer neighborhood than to remodel your existing home. 
 
Are you being realistic? Ask yourself an honest question: do you really have the skills needed to complete the remodels to your home? If the answer is no but you want to do some hands-on learning, are you willing to live with the imperfections in your final project? If you already have the skills, do you also have the time? You and your spouse may be handy with power tools and a hammer, but if you each work 60 hours a week those remodel projects won’t likely be completed anytime soon. Be realistic about your skills and time and don’t be afraid to hire a qualified professional to do the job!
 
Do you have the money? With home remodels often costing tens of thousands, and in some cases of major upgrades over $100,000, many home owners just don’t have the cash on hand to put toward these valuable renovations. Luckily, there are more options than just paying cash for a remodel. Visit your local Arvest Bank to learn about home equity lines of credit. 
 
As you answer these five questions, you’ll become more informed and prepared to make a decision on when and what remodels to consider for your home.

Blog edited by Blog Admin on 7/22/15.

Tags: Home Loans, Mortgage
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