When your home is damaged, the sales price might be decreased if you put it on the market. There are, of course, exceptions, such as for homes in an older or in-demand neighborhood where the land is worth more than the structure. Home builders are going to demolish the existing home to build a new one, so the condition of the structure doesn’t matter.
However, if your home is still worth more than the land, and you have structural damage like foundation issues, the market value of your property can take a nosedive. That’s why keeping up with your home over time is important. But if you have to sell your home, as in the case of a family property that’s owned by an elderly relative, home renovations and repairs can increase that home’s value.
Be clear about why you’re taking on this project. Much of that depends on whether you’re going to live in the home for the next five years or more. If you are, you can take on larger projects without worrying about whether you’ll get your investment back when you sell. Making your home more enjoyable is a great reason to renovate.
However, if you’re going to sell soon, there are projects that will return more on the investment than others and make your home more marketable. Taking care of routine repairs like holes in walls, broken doors, and peeling paint both inside and out will attract many more buyers willing to offer top-dollar bids, and that’s the end goal. Some improvement projects will return high on your investment, paying off when you sell, while others, like a new patio or swimming pool, won’t.
In the Austin area, real estate prices in some places have risen 40% since 2020, and renovations can be deceptive; but the rule still applies. Properties are being snapped up at above asking price with very few concessions from sellers. Don’t spend the money on anything you don’t have to, since, in some cases, the new homeowner is going to renovate the home anyway.
Now that you’ve decided to move forward, draw up some plans and make a list of any repairs that you need done. It’s always better to consult with an architect—especially if you’re going to be removing walls. However, many contractors can help you visualize what you want to do and help you prioritize based on needs versus desires.
Set a clear home remodeling budget, and stick to it. This gives you clear guidelines on what you can and can’t do; but don’t worry, most homeowners go over. Once you have your architectural drawings or your contractor has completed the visualization session, you can get a much more accurate estimate of what your project will cost. At this point, you can shift budget from one part of your project—for instance, new granite countertops for the kitchen, which may not need as much work as you thought—to a bathroom renovation. The process is fairly fluid at this point, so you have options.
It’s important to take care of repairs because some of them can turn into major issues if not caught early. If you’re going to stay in your home for a while, take care of the things that can affect the structural integrity of your home first. Foundation issues fall into that category. They are much easier to repair if caught early than when you start seeing cracks in your slab or along walls and doors.
Leaky pipes, termite damage, old siding, and paint are also issues you should address immediately because these can only get worse over time. After you address these repairs and have peace of mind knowing that they are taken care of, they may not wind up costing as much as you thought, and you can entertain the idea of adding a pool in the backyard, a deck with patio furniture and a view, a balcony with the bedrooms, or a fountain in the driveway.
If you’re leaning toward any additions, ask these questions:
These are all critical questions, and the answers will make it clear whether you should invest in the additions. If you don’t know, ask a real estate agent who knows your area to see what improvements they would recommend investing in.
Whether you’ve decided to get your home ready to sell or you’re planning renovations to live with for a while, reach out to the home remodeling experts in Round Rock, Texas. Freccia Group’s design and construction team can take care of your residential renovation projects. Call us at (512) 410-1342 for commercial construction and home remodeling.