Is a Major Renovation a Good Investment?
Here's a good rule of thumb to consider. Most experts have historically calculated the immediate cost value relationship impact on a home, which is regularly between 60% to 80% (rate of return) on the initial remodeling investment that same year. Consider that most homes increase in value at a rate equal to or higher than most price indexes. That said if your home value appreciates at a rate of 3% +, the cost difference between the cost and expected rate of return will be offset the longer you remain in the home.
Neglecting routine maintenance can create issues that can also develop into a major home renovation, which may have been avoidable. These types of maintenance issues are often associated with structural problems, such as foundation settlement, rainwater leaks coming from the roof or siding, and bug or termite infestations. These remodeling issues require a significant investment to fix the problem. When maintenance is left for extended periods of time, the sad truth is a homeowner will spend a lot of money to put the house back to where it was. An exception to this may be a new roof. Buyers like knowing a roof is new, even the cause of the new roof was years of neglect from water or weather seeping in. So long as all repairs relating to the roof have been fixed. The longer the most severe maintenance concerns are left untouched, the more it will cost the homeowner just to get back to square one. If you're planning to sell your house, be prepared to disclose certain types of known maintenance issues.
Not All Home Improvements Are Created Equal
Once justifications and motivations have been satisfied with the time test, take it into serious consideration which areas of your house you can or should improve. Consider which products or features are essential to you. When remodeling a kitchen as an example. Often times, the kitchen is in the center of the home. If you update your kitchen but leave the rest of the adjoining rooms as is, the kitchen may look disjointed or out of place. Working with a design to make sure the rooms blend from one to another is a crucial and oftentimes overlooked and under-considered element to a successful renovation. Will a remodel solve for any of your spaces' functional problems?
When working with your designer, she will (or should) ask you many questions about the lifestyle you're hoping the remodel will bring to your family. What are the goals and considerations that you need to happen in order to move forward with the design and renovation? Can you achieve enough of an update with a fresh coat of paint? Is your rehab coming from a place of form or function, out of necessity due to maintenance issues or has the space become unusable due to your family (growth or age of kids can change how a room gets used).
In the end, a major or minor home renovation is subjective. From my experience, I see that (for most) homeowners, the desire for restoration comes out of necessity in making the space more functional.
If you have questions on the viability of a remodeling project that is right for you, send me an email. Provide details and pictures to help me get a full understanding of the room(s) and how you use them, what you'd like to see happen (and why). I am happy to help in any way I can.