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You have a great idea for improving your home. You want to get started right away, but your practical side wants to know if the home improvement cost is justified. There are many ways to think of return on investment. There are the intangible benefits like how you will feel if you upgrade or add something new to your space.
Let's take an example and see cost to remodel house. What if you replace an old tiny window in your den with a giant picture window. In terms of dollar value, your home won't jump in value because you replaced a single window. If, however, you are really happy because you can look out at the sunset every day after work then the cost is certainly justified.
How about if you decide to replace your kitchen? Is the house renovation cost justified then? Well, as it turns out, the condition of your kitchen has a very large impact on the resale value of your home. One real estate agent once told me that it can account for a ten percent swing in the price. That's a lot of money. Replacing your kitchen is a big project, not one to be taken lightly. It is also very costly. Kitchen cabinets can run into the tens of thousands of dollars depending on the type of construction and dimensions. So as a rule of thumb, if you have an old kitchen, upgrading it will add to the value of your home.
There are lots home renovation blog of other projects that can increase your home's value. Adding a bedroom can increase the value of your home, especially if you have a home with only 2 bedrooms to begin with. In this case, the home improvement cost is outweighed by the fact that you need more space for children, a home office, etc.
Before you start any construction, be sure you know the costs involved. Find at least 3 reputable contractors and get estimates from them for comparison. Also, find out if your home improvement project will raise your taxes. This will factor into your final costs.
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