Have you considered moving because of your home’s outdated fixtures, scuffed surfaces or cramped spaces?
If you love your location but not your house, it may be worth considering a remodel instead. A report by the National Association of Realtors® found that after remodeling, 65 percent of people surveyed enjoyed their home more and 75 percent had a greater desire to spend time at home.*
Could remodeling revitalize your home, too?
Find your motivation for remodeling
Not quite sure if a home remodel is right for you? Here are some great reasons to remodel:
Your home is in need of an upgrade.
Maybe your home feels like it’s stuck in the ‘60s. Or you don’t have the proper space to host guests. Or perhaps you’re getting older and need better accessibility. A renovation could solve these problems without the hassle of moving.
It’s cheaper than buying a new home.
In most scenarios, you’re likely to save money by renovating rather than buying a new home. This is especially true in the current U.S. housing market, as many tax benefits for home buying have been reduced or eliminated and prices have become unfavorable for buyers.
You’ll be better prepared for selling.
If you still find yourself unsatisfied with your home after remodeling, at the very least you’ll have increased the value and demand of your home when it comes time to sell.
Financing is affordable.
If your remodel will require financing, now’s a great time. With home prices rising, that means you can borrow more against the equity of your home.
A home makeover project can easily go over budget, take longer than expected and not come out as planned. Here are a few tips if you choose to renovate:
Do your research.
If you plan to hire any remodeling contractors, research their credentials first. Do they have good reviews, at least three years of experience and membership in the National Association of the Remodeling Industry?
Don’t count on a great return on investment.
Many renovations don’t recoup their entire cost. According to the Remodeling 2023 Cost vs. Value Report, the national averages for regaining money spent on renovation projections were as low as 39.8% for a deck addition and as high as 102.7% for a garage door replacement.**
Create a budget.
Determine how much you can afford to spend on your project and then make purchases as if you’re aiming for 90 percent of it. This will provide you with a monetary cushion in the event of the unexpected.
Save money for the renovation.
You can reduce the debt you take on from your renovation by stockpiling cash in the months prior. Place the money in a secure savings account and you can start earning interest, too.