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Remodeling For Resale Value
Michigan home owners who remodel
their homes or make improvements to their property
naturally hope to recoup any costs when it comes
time to refinance or put their home up for sale.
However, when it comes to financing and the real
estate market, some remodeling jobs are more
valuable than others. If your main goal in doing a
remodel is to raise the sticker value of your home,
you might want to do some research on which remodels
give you more bang for your buck.
Kitchen and
bathroom remodels are a surefire bet, since they
are valuable to home buyers today. These remodels
usually pay back about 95% of their own cost when it
comes time to appraise the home. Kitchens and
bathrooms go out of date quickly, and are two of the
most-often used rooms in a home. If you're planning
on a remodel, this is the first place you should
look.
Other remodeling jobs, although they might be pricey
and they may sound great, simply don't have much
impact on the home's market value. Building an
outdoor pool, for example, is not a good investment
for today's home owners. Buyers simply aren't
looking for pools in their yards nowadays, and
you're not nearly as likely to get your money back
if you go to the trouble of installing one. It's
ironic considering that a minor kitchen remodeling
will most likely cost you thousands less than a
pool, and yet it will be reflected in your market
value at a much better rate. Installing a fireplace,
which generally costs around $3,000 or less,
depending on the home, can be a great step. While
not as lucrative as redoing your kitchen or
bathroom, or building a new room or a patio, a
fireplace in the family room will guarantee you a
higher than average return on your money.
Very surprisingly, refinishing your basement is a
remodeling job that pulls hardly any weight in
today's market. Whether it's because basement rec
rooms are out of style, or because more people have
found the value in leaving the basement as storage
space, a basement remodel will probably only bring
you about a 15% return on your investment. This is a
surprising statistic, considering the fact that
remodeling the basement can add square footage to
your living area. If you're interested in adding
square footage, you would be much better off
investing in an additional bedroom or a front porch.
The remodeling jobs will be more expensive, but
you'll be much more likely to recoup your losses
when it comes time for a sale.
So if you're looking to remodel for the purpose of
selling your home, or getting it appraised for
mortgage purposes, do a little research on current
housing trends. You may very well find that a
remodeling job you thought was too expensive will
end up paying for itself in the long run.
About the Author:
Kirsten Hawkins is a real estate expert from
Nashville, TN. Visit
http://www.king-of-real-estate.com for more
information on real estate, mortgages, and finding
the house of your dream..
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