With the median home price down 22% since 2006, you might think this is an opportune time to trade up for the new master bathroom or other modern feature you want. After all, why not buy somebody else’s home improvement or remodeling headache at a discount.
But you can’t assume that you’ll easily sell your house in this tough market and then find a new place that has the exact features you want (and not a bunch of stuff you don’t want). And moving remains far costlier than improving, said John Ranco, past president of the Greater Boston Association of Realtors.
For starters, commissions and fees to sell a $400,000 home could run $25,000.
“You can get a lot of home improvement remodeling done for that kind of money,” said Ranco. “And that doesn’t even include the higher price you’re paying for the new house, the moving and relocation costs, or the inevitable painting and window treatments the new place will need.”
You get to enjoy the results
When it comes time to sell your place, chances are you’ll probably wind up having to do the sorely needed renovations you didn’t take care of earlier. Not only does that add a huge amount of stress to the process of putting a house on the market, but you still end up spending the money (quite possibly when contractor, materials, and borrowing costs are higher).
Why not get the benefits of a new furnace or an updated powder room for you and your family instead of buying them for the house’s next owners? And why not do the projects soon so you get as much time as possible to enjoy the results?
Unlike vacations, luxury cars, or other discretionary expenditures, your remodeling project might recoup a significant chunk of its cost someday.
Even so, home improvements aren’t purely investment decisions — you shouldn’t redo a kitchen or bathroom in the hopes of making a profit. You remodel your home because you want to enjoy it over the years and it’s money well spent.
Contact Freedom Builders & Remodelers 815-985-0310 for you in home consultation today!