House Construction Cost Estimates to Calculate the Return on Your Investment
Planning on remodeling your home to increase its curb appeal? Return on investment calculations for renovation are complex and inaccurate. That doesn’t mean you shouldn’t do home improvements to enhance home value, but you should do in-depth research first. Once you know an exact cost estimate for a home improvement project, consider the return value in terms of both personal satisfaction and real estate value. Neither can be correctly calculated but you can reach rough house construction cost estimates of the return on investment. Look for expert advice and reliable figures, but also always remember the real estate rule: Home value always relies on location, location and location.
Where to Research Before Renovating a House
The annual Cost vs. Value Report is the most reliable and widely used guide to calculating return on home remodeling investments. Many Remodeling Magazines publish the guide based on surveys conducted with the help of realtors. The surveys ask about the changes in expected resale value based on specific renovation projects. The results state that the worst return on investment comes from a home office remodel, which recovers just 50 percent of the cost.
So, you should pay attention to the cost estimates for each project on the Cost vs. Value report. Not all renovations offer the same home resale value. A new countertop may raise the home value, but a granite countertop may be almost as valuable to a buyer as a much more expensive Italian marble counter top.
Regional Value Differences in Home Improvement and Additions
In some particular regions, window replacements are worth more than kitchen and bathroom remodels. While in others, siding replacement slides the cost-value scale way down, and kitchen renovations top the list. However, there are further variations within regions and cities. Therefore, consult local contractors and experienced remodelers about the most famous and valuable projects in your area. Their experiences and house construction cost estimates may differ from the Cost vs. Value report.
Before sinking some money into home remodeling projects this year, try to keep a few things in mind. What you’ll receive on your investment depends entirely on your home value, the value of houses in your region, the housing market where you live, how soon you sell after making improvements, and the quality of the project itself. Installing a $20,000 stove in a $300,000 house, for example, just doesn’t make sense. Nor does it make sense to remodel your kitchen if your house is the only house in the neighborhood with just one bathroom.
The Cost vs. Value report renders valuable estimates for the return on investment of a variety of home remodeling projects, but fixes the numbers based on local expertise.