When you are in the process of a home remodel you can have a lot of fun, but you can also get really carried away very easily.
I had a luxury client in Florida purchase a home for $9,000,000 and I knew they would remodel (It’s just who they are).
After doing so, inside and out, they invested over $20,000,000 into the project taking over 5 years to complete. On year 7 their lives were blessed with a child, and the home was not a place to raise children (due to several factors of their modifications). So when they went to list the home, and of course they wanted to do so OVER $30 Million!
The above is an extreme story, but place it into proportion to your situation. If you bought a home for $500,000 and put $200,000 into it, how much is it worth logically in your current market?
3 Tips for your home remodel
- Don’t over do it. If you don’t live in a million dollar neighborhood, then don’t build a million dollar home. Over building won’t get you a better resale return, it will just get you stuck with an overpriced listing nobody wants.
- Plan ahead. Know your goals, know your budget and know what you’re getting yourself into. When remodeling, it’s common to run into unforeseen problems with plumbing, electric, and more so plan for these contingencies in your budget. Also, be aware that you will be living in a constructions zone for months (or even years) depending on the scale of your home renovations.
- Enjoy yourself! If you enjoyed the remodel that is what it is ALL about. Don’t forget the reason you started this project – to make your home life more enjoyable.
Keep in mind that if you are staying in your home for the rest of your life, this advice need not apply.
