Every homeowner has probably thought to themselves, “Geez, I need a new kitchen” or maybe said, “Hey honey, let’s redo our bathrooms” The thought then creeps in, “How much is this little project going to cost me?”
Well a better question might be, “How much of my investment will I be able to recoup?” Generally, there is always an amount that can be added as value put into your home. The trick is to make sure that the project does not exceed the value of the comparables in the area.
For instance if an Irving Las Colinas homeowner decides to remodel their kitchen and finds out they will be spending $25,000, then the formula needs to be calculated as follows.
In the neighborhood they live in, properties of similar size and features that have been remodeled, generally sell for $250,000. The homeowner bought the home one year ago for $225,000. If they spend the $25,000 on the kitchen, there is a pretty good chance that the money they spend will be recouped upon the time when they sell the property,
It is important to get an idea of what homes are selling for in your area before you start a large project and put in a lot of money. That being said, if you are going to live in the home for the next 30 years you will likely have the appreciation over the years that will make up for the costs.
There is one more reference that homeowners in the Irving area can use. Although the stats are for the Dallas area in general, Remodeling Magazine Online puts out a Cost vs. Value Report. This tells homeowners what percentage of certain projects they can expect to recoup.
Happy Hammering.
Well a better question might be, “How much of my investment will I be able to recoup?” Generally, there is always an amount that can be added as value put into your home. The trick is to make sure that the project does not exceed the value of the comparables in the area.
For instance if an Irving Las Colinas homeowner decides to remodel their kitchen and finds out they will be spending $25,000, then the formula needs to be calculated as follows.
In the neighborhood they live in, properties of similar size and features that have been remodeled, generally sell for $250,000. The homeowner bought the home one year ago for $225,000. If they spend the $25,000 on the kitchen, there is a pretty good chance that the money they spend will be recouped upon the time when they sell the property,
It is important to get an idea of what homes are selling for in your area before you start a large project and put in a lot of money. That being said, if you are going to live in the home for the next 30 years you will likely have the appreciation over the years that will make up for the costs.
There is one more reference that homeowners in the Irving area can use. Although the stats are for the Dallas area in general, Remodeling Magazine Online puts out a Cost vs. Value Report. This tells homeowners what percentage of certain projects they can expect to recoup.
Happy Hammering.
