How Much Will That Roofing Renovation Cost You? Surpassing even grocery spending, home improvement topped $420 billion last year. This is a lot of cash that consumers are willing to spend as anyone who owns a home wants to update it somehow.
Despite the economy shrinking 3.5% in 2020, home remodeling grew by 3% last year and is projected to rise another 4.8% through Q1 2022. Annually, about 800 million Americans claim their home needs at least one repair, renovation, or upgrade project. So, what’s driving this growth in home improvement? It’s not rising wages — wages have been stagnant for years.
It’s no secret why homeowners want to remodel their houses. To them, it’s worth the investment if they receive in return: a more comfortable home that meets their personal needs, a home that’s safer for children or pets, or a space that just looks better. But with so many options, how can you be sure you’re making the right decision and if the cost is worth it?
To help you make an informed decision, we analyze the investment potential of any home renovation project. We’ve summarized findings from Zonda’s 2021 Cost vs. Value report to shed light on the average upfront cost for common projects, and the potential return on investment (ROI) you could achieve upon resale. * Our expert reviewers dissect your project for improved areas and show you how to get the most return on every remodeling dollar.
Projects With the Highest ROI
Projects With the Lowest ROI
Top 3 Most Desired Improvements
Remodeling the Kitchen or Bath: Striking a Balance
The initial out-of-pocket costs for a remodel can vary widely, but the upfront costs for completing the project — including labor, materials, and any upgrades or additional costs required — are generally higher for a major remodel because of the design of the home requires it.
The most popular remodels tend to be the most expensive, and the more upscale the project, the lower the return on investment. If you’re considering one of the big two — a bathroom or kitchen remodel — keep in mind that the size and scope of the project will largely influence the cost and ROI.
So before you begin working on your bathroom or kitchen remodel, consider whether the investment is right for you. Before you begin pulling out all the stops (including pennies), take a moment to consider if you are truly going to benefit from the remodels. This means asking yourself questions like: Will this increase the value of my home? Will it make me feel more secure in my home? Is this something I would want to do myself?
The Takeaway
A kitchen or bath remodel may not generate as ROI as a new garage or stone veneer, but it’s important to remember that these projects exist in a category of their own and the result can be more valuable in the long run. The reasons for updating a kitchen or bathroom are drastically different than that of exterior enhancements. In many cases, renovations are necessary to keep pace with modern living, keep the peace within the home, or address safety concerns. Plus, if you’re thinking about resale, these are the two most important rooms that potential buyers look for in a new home.
Whether you want to modernize your kitchen or update your bathroom, remodeling your home is an exciting investment. Take the time to understand what you’d like to get out of a remodel and weigh these reasons against the cost to determine if it’s the right choice for you and your family.
Remember that the key is to strike the right balance between necessity and desire. For instance, a simple bathroom or kitchen makeover can be the perfect solution for a tight cash budget. A smaller, less-expensive bathroom may not need the same level of luxury and functionality as a more expensive version. Choosing a piece that blends in with your existing decor may provide the perfect amount of luxury for your budget while still delivering the look you desire. It’s also important to consider comparative homes in your area: You don’t want to price your home outside of the neighborhood.
Labor shortages and rising material costs are increasing the likelihood of project delays. Talk to professional contractors in your area to get a clear picture of the market, and weigh out these factors as you determine whether to move forward with your project.
Financing Your Remodel
Once you’ve decided on the perfect project for your home and once you know the potential costs, the next step is to figure out how you will fund your home improvement project. The first step to finding the right financing option for your home improvement project is to determine how much cash you can put into the project, and how much of the project you’ll need to fund with a loan or mortgage. Luckily, many of today’s homeowners have access to record-high equity, which can be tapped into to fund renovations. With the cost or value of your home as collateral, you are able to use funds from your home improvement loan for any purpose, such as fixing the foundation, remodeling a bathroom or kitchen, adding an addition to your house, or essential repairs due to https://www.owenscorning.com/en-us/roofing/contractors/contractor-profile/208160fire damage. According to CoreLogic, the average homeowner with a mortgage has more than $200,000 in home equity.
For anybody who’s ever thought about remodeling a house, we bring good news: You don’t have to live with that laminate topped kitchen counter. It can be replaced with your dream of granite countertops. If you’re interested in accessing the equity in your home to finance a remodeling project, please give us a call so we can discuss the best way for you to use your equity to remodel your home. Our service will be tailored to meet the unique needs of your project.
For all your roofing and home construction needs in Madison, Brandon, Byram, and Jackson, Mississippi call Watkins Construction & Roofing today at 601-966-8233.
.