Back to Blog

Property Value, ROI, and Other Considerations for Home Renovations

Man and Woman Looking at Ideas for Home Renovations

Are you considering a home renovation project? It can be a huge undertaking—time-consuming, expensive, and stressful—but it can also be incredibly rewarding. A home renovation can bring new life to your space and increase the value of your property, but it’s important to consider the downsides before diving in. In this blog, we’ll discuss the potential benefits and pitfalls of a home renovation project. Then, you can decide if the pros outweigh the cons!

POTENTIAL BENEFITS

One of the most obvious benefits of renovations is that they can increase the value of your home. This is particularly true if you make improvements to the most important areas of your home, such as the kitchen and bathroom. These rooms are often considered the heart of the home, and buyers are willing to pay a premium for homes that have been well-maintained and updated.

In addition to increasing the value of your home, renovations can also make your home more comfortable and functional. Weatherization, which refers to the process of making a home more energy efficient, is a good idea when renovating a home for several reasons. First, weatherization can save you money on your energy bills. By making your home more energy efficient, you can reduce the amount of energy needed to heat and cool your home. A nice side effect is that by sealing gaps and cracks and insulating your home properly, you can reduce drafts and improve the overall comfort of your home. Finally, weatherization can also make it more valuable and attractive to potential buyers. Some Vermont towns, like Montpelier, are piloting home efficiency tests as part of the buying and selling process, which means your investment in weatherization in these towns may have an even bigger impact on the selling price of your home.

Another reason to consider renovations is that they can help you personalize your home to better suit your individual tastes and needs. For example, if you love to cook, you may want to invest in a new kitchen with high-end appliances and plenty of counter space. Or, if you have a large family, you may want to add an extra bathroom or expand your living space to accommodate everyone’s needs.

 

Mt Mansfield

Shop Locally and Save Money

Pay lower interest rates on local purchases with the VERMONT Platinum credit card.

See Our Rates

 

POSSIBLE DOWNSIDES 

Of course, renovations can be costly, and it’s important to carefully consider whether the investment is worth it. One way to determine if a renovation is a good idea is to think about how long you plan to stay in your home. If you’re planning to sell soon, then making some strategic renovations can be a good way to increase the value of your home and make it more attractive to potential buyers. However, know that in some cases the cost of the renovations may not be recouped when you sell the property, especially if the market is weak or if you over-improve your home for the neighborhood.

On the other hand, if you’re planning to stay in your home for the long term, then you may want to focus on renovations that will make your home more comfortable and functional for you and your family. In this case, it’s important to carefully consider your budget and make sure that you’re not overspending on renovations that won’t provide a good return on investment.

Another downside of home renovations is the disruption and inconvenience they can cause. Renovations can be time-consuming and messy, and they can disrupt your daily routine. You may need to temporarily move out of your home, or you may have to deal with construction noise and dust.

In addition, there is always the risk that something will go wrong during the renovation process. For example, you may discover that your home has hidden problems, such as water damage or structural issues, that will require additional repairs and increase the cost of the project. In a way, this could be good for you and your house, although discovering anything unexpected like this is almost certainly unwelcome news! Or, you may not be satisfied with the quality of the work done by your contractor, which can lead to delays and additional costs.

If you’re considering a renovation, it’s important to carefully weigh the potential benefits against the potential downsides before embarking on a project. Ultimately, the decision to undertake a renovation project is a personal one, and it will depend on your individual circumstances and goals. It’s a good idea to consult with a professional contractor or home inspector to get a sense of what improvements are most likely to add value to your home and get a better sense of the expenses and risks involved. With careful planning and the right approach, renovations can be a great way to improve your home and potentially increase its value.

Branch

Not a Member?

Join a values-based credit union that puts people over profit.

Join today
Mark Wright

About Mark Wright

With over 35 years of mortgage banking experience, Mark Wright is a mortgage originator who serves the mortgage needs of Vermont families in Northeastern and Central Vermont, including Essex, Caledonia, Orange, Orleans and Washington Counties. He enjoys helping Vermonters with their financial needs and assisting borrowers with their mortgages. Mark resides in Waterbury Center with his wife and has two grown children. He enjoys traveling, outdoor sports, and spending time with family and friends.
Reading on Phone

Stay informed

Stay up to date on financial tips, tricks, and tools that will build your financial literacy and help you live a more prosperous life.

Subscribe now!