One of the popular questions we get from homeowners that are considering a remodel is what options will give them the most return in the future, should they someday choose to sell their home. Although our ideal clients tend to be individuals that are not intending to move – those that have found their “forever home” and plan to live the rest of their life there—it is still a good idea to know what projects will provide the greatest ROI in the event that a move is necessary. Most contractors and realtors will probably tell you that a kitchen or bathroom remodel is going to be the best investment in regard to ROI. This is true, however, it’s important to know that this is only the case if you move a minimum of 10 years after your remodel. Moving within a 1 to 5 year timeframe is simply not a wise decision from a financial perspective, as the expense will be greater than the return within such a short time. For that reason, we typically are not the best fit for those that are working with investment properties or flip houses.
While it would seem that any update to your home would be good for your ROI, you should be aware that there are some projects that can actually lower the value of your home! Our owner, Mike Sr, will tell you that many times when he meets with a potential client to discuss a new project, he will spend the majority of the discussion trying to talk them out of it. If what they are thinking might serve an immediate need, but the long-term effect of the project on the value of the house will be a negative, he tries to get them to look at alternatives to serving their need. This might sound blunt, but our goal as a design-build firm is to provide our clients with honest facts and guidance when it comes to major home remodeling decisions. We want to educate you on the pros and cons of your potential project to help you choose the best option for the long-term!
Here are five home projects Mike Sr almost always tries to talk clients out of:
Choosing between remodeling your current home or moving into a new home can be a difficult decision, as are most decisions that involve large amounts of money. Unfortunately, this is a decision a typical family might have to face more than once.
The first time is when babies are born — most Americans buy a small starter home, which quickly feels too crowded once a child arrives.
This problem occurs again when the kids become teenagers and need their own space; sharing bedrooms becomes an invasion of privacy.