There are some remodeling projects that may not provide the best value for homeowners. Real estate experts typically point to expensive additions – such as home theatres, swimming pools and wine cellars – as the riskiest remodeling projects. The key to determining if such luxurious projects will add sufficient value to the home and allow the homeowner to recoup the value lies in assessing what is right for the neighborhood. For instance, a home with two bathrooms could gain significant value when a new bathroom is added if all the surrounding properties have three or more bathrooms. Likewise, if you reside in an area where swimming pools are expected, prospective homebuyers probably won’t see your addition as an unnecessary liability.
Most importantly, keep in mind that renovations and remodeling projects may not be as simple as they seem. It is wise to weigh the risks and to consider what is best for your local market before starting any project. If you are unsure what types of remodeling projects would add value in your neighborhood, consult your local Coldwell Banker real estate agent to get a better understanding of what your buyers will value.
