One very important question when considering a remodeling project is “how much will I make on this investment”? This can be a difficult question to answer, so I hope to shed some light on a resource I use.
I look to the Remodeling Magazine’s Cost vs. Value report each year. Remodeling Magazine submits bids to hundreds of contractors to calculate average job costs. They then work with real estate professionals to see how much the project has increased the value of the house. It is not a perfect formula, but it does provide valuable guidance when considering a project.
For example, I feel the job cost for some projects are too high in the Cost vs. Value report. According to the 2011-2012 report, the average job cost for vinyl windows in New England is $11,647.00. At Classic Window Systems, we have windows that can be installed for much less without sacrificing quality.
The first thing to consider is how long you plan to stay in your home. If you are moving within a couple of years, you probably shouldn’t sink a ton of money in the house unless it truly needs it. On the other hand, if you plan to stay in your home long term, over 10 years, most projects are a good investment.
There are certain projects that will make money right away. Landscaping will almost always make a profit no matter when you are moving, as long as you don’t go overboard.
Almost every project that is done right will appreciate over time. One thing to consider is style. When you remodel a kitchen it will most definitely make you money over time, but at some point it will start to decline because of style. Thank goodness we don’t have olive green appliances anymore, understand my point? Projects like installing a good quality window that will last a lifetime will keep appreciating with the house for longer than you need it to.
Overall, it’s best to do your research on any project and this is just one component to consider when investing in Your Home in Maine
Thanks,
Doug
