Remodeling your home offers a world of benefits. It allows you to transform your living space into an environment that perfectly suits your family’s needs, achieves your interior design goals, and lets you unwind at the end of the day. But home remodeling can also have financial benefits, like increasing your property’s resale value.
The return on investment (ROI) you can expect from a home remodel depends on numerous factors. If maximizing the ROI of home remodeling is your main goal, expert home designers can help you achieve it. But keep in mind that home remodeling also offers life value aside from simply monetary value.
Learn more about the ROI of home remodeling, including what to expect and how life value also plays a role in your ROI.
Does Home Remodeling Provide a Good Return on Investment?
Home remodeling generally provides a good return on investment because major remodels can increase your property value. A recently remodeled house will sell for more than an identical house with outdated designs and materials. As a result, you can expect to gain back some of your remodeling costs when you sell your home.
Home renovation returns depend largely on the changes you’re making to the home. Generally, your remodeling investment value will increase if you’re fixing a design or structural flaw in the home rather than just making changes according to your preferences.
Factors Affecting the ROI of Home Remodeling
Many factors affect the ROI of home remodeling. Your home designers can help you determine how much value your remodel will add to your property based on the following factors:
Neighborhood
One important factor to keep in mind when considering the ROI of home remodeling is your neighborhood. Your house likely won’t sell for much more than the highest listing price in your neighborhood, even if you’ve spent hundreds of thousands on remodeling. But if your neighborhood is desirable for your area and homes tend to sell quickly, you may have more leeway in raising the price ceiling.
Market
The housing market at the time you list your home will also impact your sale price independent of the renovations you complete. You’ll likely be able to get more for the home when you sell it in a competitive market. During periods of economic stability, more buyers may be interested in raising their budgets to afford a recently remodeled home like yours.
Costs
The costs you put into your remodel directly impact your ROI. If you end up spending more than you were expecting because of unforeseen issues or hidden costs, your ROI will decrease. However, working with a seasoned remodeling company can help you make strategic material choices, circumvent problems, and adjust your budget accordingly when issues arise.
Design Choices
Your home is your family’s space, so you should opt for interior design styles that make you happy — not necessarily what is trendy. Your design choices will inevitably impact your resale value, as some bathroom design ideas or kitchen designs are trendier than others, and potential buyers often lean toward current trends. But you can’t know what trends will be like when you decide to sell your home, so your kitchen design ideas should reflect your personal style goals rather than current fads.
Adding Monetary Value vs. Life Value
Your home remodel will likely boost the resale value of your home, but it adds a lot more than monetary value. Home remodeling also adds life value to your property.
Life value is a measure of the usefulness, enjoyment, and meaningfulness your home remodel brings to you and your family. A high-quality home remodel will focus more on life value than monetary value, as remodelers will choose each element of the design with your family’s goals and preferences in mind.
With your home remodel, your family will be able to enjoy a space that is attuned to your lifestyle, fosters healthy living, encourages relaxation, and feels like home. They will have access to the unique amenities they need to feel comfortable, process emotions, feel calm, and be at peace in their environment.
Life value isn’t something you can assign a price tag to, but it’s an important benefit to keep in mind when considering the ROI of your home remodel. You won’t only see financial returns; you’ll also see the fruits of a personalized home design curated specifically for your family.
Euro Design Build: Maximizing the Value of Your Home Remodel
At Euro Design Build, we specialize in home remodels that provide holistic benefits for our clients. We’ll help you remodel your home to add life value and monetary value, personalizing your designs to suit your family’s lifestyle and goals in the most seamless way possible. Our high-quality, durable materials and expert craftsmanship further improve the ROI of home remodeling.
If you’re looking for an “interior designer near me” in the greater Richardson, TX, area, call Euro Design Build today at 972-470-0303 to schedule a consultation.
