How do you choose which home remodeling projects are the right ones if you’re selling your home? Although there are a lot of variables to consider—including time for completion, current remodeling trends and whether or not the project will help bring your home in line with other area homes—you can pick the best projects by examining your financial situation, thoroughly researching your options and having a discussion with your real estate agent.
First and foremost, you’ll need to determine how much you can afford. You certainly don’t want to extend yourself, especially if you’ll need that cash for the costs associated with a new home, such as a down payment or furnishings. Although financing your projects is an option—such as using a home equity loan—make sure you don’t get in over your head in terms of the total cost.
Once you’ve figured out how much you can afford, you should then consider what remodeling projects you need to complete versus what remodeling projects you simply want to complete. Spending money on a new shower in your master bathroom or adding on a sunroom may not be the best idea if your kitchen hasn’t been updated since the 1970’s. Prioritizing your projects may be critical to your sale.
Next, look into how much of your costs you’ll recoup when you sell. You probably won’t recoup all of your remodeling expenses, but according to Remodeling magazine’s 2018 Cost vs. Value Report—which is a survey of average cost and resale value for remodeling projects in 149 markets and can be found at www.costvsvalue.com—you may be able recover a good chunk of them. The sample below from the report shows two popular projects that may be cost-effective—and one project that may not be.
Finally—and possibly most importantly—you’ll need to discuss your options with your real estate agent. Their knowledge and expertise is vital when it comes to choosing which remodeling projects are right for you, your home and your particular neighborhood. You should certainly do your research into which area of your home needs to be upgraded, but before you make a decision on any project, talk to your agent and allow them to guide you in the right direction.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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