Over the last few days we’ve looked a several personal finance factors involved when it comes to home remodeling and renovation projects, from setting a home remodeling budget to determining how much you can actually afford to spend.
As I continue this blog series on home renovation projects, I wanted to answer yet another question in the home renovation planning process: Are home remodeling projects worth it? This is an important question because the last thing you want to do is regret your decision to move forward with a home renovation project and not be 100% thrilled with the results.
To determine whether or not a home improvement project is worth the cost, you must first define what you mean by WORTH.
As I mentioned in a previous home improvement article, you’ll almost never get your money back in resale value when it comes individual home improvement projects. In other words, if you spend $40,000 on a kitchen remodeling project, it is unlikely that your home’s resale value will increase by $40,000 (all other things being equal).
A better way to look at whether or not a home renovation or remodeling project is worth it is to look at what value that project will bring to your life. Will it make it you and your family’s life easier? Will the renovation give you a warm fuzzy feeling in terms of how the project looks? Does the project address a need that your house is currently lacking like adding a second bathroom or bedroom?
It’s hard to quantify exactly how much value a project may be worth as each family’s needs and priorities are different. The important thing is taking the time to communicate with your spouse and identify exactly what you’re trying to accomplish and whether or not the bid proposals you’ve received are worth the price; not just in money, but in the time and disruption the home renovation project will cause during construction.
Having a clear picture of the end results and an idea of how they’ll address your needs will help take the stress out of deciding whether or not it makes sense to move forward with your home remodeling or renovation project.
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