How does a homeowner know when to spend a lot of money on a home project versus when it is all right to go a cheaper route? When taking bids for a renovation project, it can be tempting to take the lowest offer, but if the highest bid comes in at $75,000 and the lowest is $30,000, there could be a reason the low bid is so low.
Check out HouseLogic’s collection of articles on ‘nickel and diming’ homes. Speak with some homeowners in your area who have completed renovation projects and if or where they regret trying to save money. Ask a REALTOR® about renovation projects that have caused problems at resale and how those could have been avoided.
There are many ways for homeowners to approach remodeling projects and even more ways to analyze the projects’ successful outcome. Below are results from the National Association of Realtor’s 2017 Remodeling Impact Report which shows how much of the cost of the remodel is recovered when the home is sold and the percent of realtors who recommend the remodel. Sometimes taking the higher bid saves more money in the long run.
Add New Bathroom
New Master Suite
Attic Converted to Living Space
Complete Kitchen Remodel
Basement Converted to Living Space
New Wood Flooring
Hardwood Floor Refinishing
Below are different types of exterior remodels, the percent recommended by realtors to complete before a home sale, and the actual value that would be recovered after the remodel. The results are from National Association of Realtor’s 2017 Remodeling Impact Report.
New Vinyl Windows
New Garage Door
New Vinyl Siding
New Steel Front Door
New Wood Windows
New Fiberglass Front Door
New Fiber-Cement Siding
Source: NAR Newsline in Story Ideas by Jane Dollinger