Most homeowners have certain projects on a list that they hope to complete. Maybe you need to add space for an aging parent or you want to add a bathroom to accommodate your grown child that just moved back into the home. Whatever the project is, it’s important to review the cost versus the value it adds to determine whether to pull the trigger now or continue to hold off until better days. Most home remodeling project costs exceed the value they add to your home. However, there is a way to create more value and wealth by remodeling your home.
Taking Control of Your Own Projects
Probably the best way to make certain your remodeling projects end up with a positive return is to manage them yourself. When you take on the general contractor role for your home improvement projects, you save. This savings can translate into thirty to forty percent depending on how you handle it. Not only do you save the general contractor’s markup, but you also save if you do some of the work yourself or have friend’s that can help. Let’s take a look at some of the projects that can actually increase the value of your home when you manage them yourself.
A new mancave can be a great addition to any house. On Saturday afternoon the mancave takes on the role of the local sports pub while during the week, it’s the kids play area. Finishing a basement is one of the most economical ways to add space to any home. As long as you have a basement and i’is currently unfinished, you can build the space for as little as ten dollars per square foot as an owner builder. A professional contractor would charge you a minimum of twenty dollars for the same level of finish. This gives you an instant savings. According to Remodeling Magazine’s Cost vs. Value Report, 2010-11, the typical basement remodel returns seventy percent when completed. So add in your owner builder savings and you come out ahead for this project.
An attic bedroom can be another great, economical way to add space to your home. As long as you have open trusses or rafters, you can finish off the space for slightly more than your basement. The costs are slightly higher as you typically need to add heat, stair access and floor framing. Even with the added costs, adding a bedroom to your attic can be financially rewarding. According to Remodeling Magazine’s Cost vs. Value Report, 2010,11, the return on the attic bedroom remodeling project is 72.2 percent. So if you manage the process yourself, you could easily add thousands of dollars to the value of your home.
A major bathroom overhaul can be a great project for an owner builder to create instant equity. If you can keep the plumbing and electrical in the walls as is, you can save big money on this project. A total bathroom overhaul including frameless glass shower enclosure, shower tile, tub/shower faucet trim replacement, floor, light fixture, quartz vanity top, designer stock vanity and faucet, and new paint can cost less than five thousand dollars if you do most of the work yourself. The best part is, your equity in the home will increase up to five thousand dollars with the completion of the project. According to Remodeling Magazine, the typical bath remodel costs sixteen thousand dollars and returns about ten thousand when you sell your home.
You can increase the equity in your home when you tackle your own remodeling projects.
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