There are many reasons to have a solid remodeling plan before you even choose a start date. One of these is to avoid over-improving your home. In today’s post, local remodeling contractor DreamMaker Bath & Kitchen of Southern Lakes takes a look at how you can avoid this mistake with your next renovation project.
What Is Over-Improvement?
Over-improving a home means investing more money into a remodeling project than can reasonably be recouped at resale. House values are affected by factors such as location, size and condition. While home improvements generally increase a house’s value, there are some projects where the homeowner will get little to no return on their investment.
Common Mistakes That Result in Over-Improvement
Bigger isn’t always better. The following are some of the most common mistakes that lead to over-improvement:
- Adding too much living area. Increasing square footage during home remodeling can help increase utility and make the home more spacious, but overdoing it can make it more difficult to refinance the house in case you need funding for future home improvements.
- Not conforming to the neighborhood. Everyone wants their house to be unique, but there’s a fine line between that and sticking out like a sore thumb. Be mindful of what is typical for your neighborhood and try to stay within those parameters.
- Too much customization. While remodeling can be considered a form of customization—you are making changes that suit your style and tastes—one can easily venture into over-improvement if the changes are too niche or too personal.
How to Avoid Over-Improvement
Avoid over-improvement by asking yourself the following questions when planning your home remodeling project:
- How long are you planning on staying? Think about whether you see yourself in the home in the next five to 10 years. Major life events such as having children or having elderly family members move in can change your home requirements. If you’re planning on moving to a bigger home within a few years, consider focusing on projects that can increase resale value.
- What is the average value of the houses in your neighborhood? You may have heard of “comps,” also known as comparable sales. They are used by real estate professionals to help determine a home’s value and list price. This gives both buyers and sellers a look at the average market value of houses in a specific neighborhood. Even if you’re not planning on selling your home, knowing its value can help you determine whether a remodel is worth doing.
Let’s Start a Conversation!
DreamMaker Bath & Kitchen of Southern Lakes values your health and safety during these challenging times. Start a conversation and schedule a virtual or in-person appointment by calling us at (262) 923-8721, or use our online form. We serve homeowners in Salem, Sturtevant, Somers and Union Grove, WI, as well as the surrounding communities.
