If it is I’m afraid I have some bad news. According to the latest report published in the mainstream consumer media, CnnMoney.com, in it’s analysis of the 2010 Remodeling Cost vs. value survey.
“In general, anyone planning a home remodeling will pay a lot more for the job than they will get back in return when they sell. Only 60% of remodeling costs in 2010 would be recouped by homeowners, the report said.”
It seems that the payback on most remodeling projects will not yield the returns of years past.
So maybe it’s a good time to re-think the value of ROI in a broader perspective. The big picture might go beyond hoping the expense of the project can be recouped in the sale.
Consider, for example, the value of having the kitchen that is custom tailored and built to suit your specific needs. Or the master suite you’ve always dreamed of with the jacuzzi tub and dual shower heads. The advantages of a healthier indoor air and living quality for you and your family when investing in green products. The value of the relationships you’ve built over the years with your neighbors and the amenities you’ve grown accustomed to.
When considering the option of moving to a home “more suitable” to your needs, we need to factor in the expense of moving with real estate fees, actual moving expense, the unknowns of new neighborhoods, etc.
Another thing that should be taken into consideration is the fact that most people end up doing a substantial remodel on their new homes within 12 months of moving in.
So, do we go ahead and spend the money knowing the return might not be there? Spend the money on something that will produce a better return? Or do we opt instead for “greener pastures”?
Click Here for more on the survey.