Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Thursday, June 27, 2024
Given that so many homeowners have fixed mortgage interest rates below 4% (or below 3%) there are plenty of homeowners who are likely to stay in their homes for MANY years to come.
Staying in a home for many years to come will likely mean that at some point you are considering some home improvement projects...
- finishing the basement
- replacing the older carpet with hardwood floors
- remodeling a bathroom
- replacing and expanding your deck
- remodeling your kitchen
- building an addition on the main floor
The list could go on and on.
When asked by homeowners about the return on investment of home improvements I am quick to point out that they all typically offer only a partial return on investment.
That is to say that if you spend $25K on project X, your home's value might only increase by $15K. If you spend $85K on project Y, your home's value might only increase by $40K. You get the idea.
BUT... looking at the return on investment through that singular lens (change in home value) is only looking at part of the story.
Typically, homeowners make improvements to not only increase the value of their home but also to improve their experience of living in the house between now and at whatever future date they sell it.
Each of the potential home improvement projects noted above would provide you with some greater enjoyment of your home or greater utility from your home for the duration of your ownership of the home.
So... if you plan to stay in your home for a while, and are considering some home improvement projects, don't only look at how those improvements will affect your home value... also consider how they will improve your enjoyment of or your use of your home.
