Secrets of Profitable Remodeling
What is remodeling?
Remodeling is updating or altering the appearance and functional utility of a building. Home remodeling is big business. It accounts for about 40% of all residential construction spending and about 2% of the U.S. economy.
So to answer the question “Is it worthwhile to remodel my house?”
Probably; however, there are many factors to consider.
Why Remodel?
First you need to determine what’s your motivation? Why do you want to remodel? Are you remodeling for your self and your families enjoyment or to increase your appraised value?
Second do not expect a full recovery of your remodeling investment. Some estimates are as low as 40 cents on the dollar. Others, depending on what you remodel may recover more than 80%.
When to Remodel?
Other factors that will impact the return on your investment:
1. What sort of economic times are you experiencing? Are you in an up or down market?
2. How long do you tend to stay in the home? The longer the better for a good return on your investment.
3. How’s the housing market in your area? Are you competing against a lot of new tract homes?
4. How will the remodel will impact your appraised value? Find out before you invest your money.
5. How strong is the resale market? Ask a local Realtor for comparable sales for your area.
6. How soon do you plan on selling?
7. Do you plan to sell with full MLS service, FSBO, or Flat Fee MLS?
Who should remodel?
Ask yourself who will do the remodel? How good are you at remodeling?
If you’re not really handy, maybe find a friend and barter or trade services.
Are you going to do the work or hire the project out?
If you are considering remodeling, get three bids from local firms. Ask brokers, lenders, and appraisers if the cost of the remodel warrants completion.
The percentage of return on the investment for remodeling will change over time and vary from area to area. Ask the professionals.
Weigh carefully the expense of remodeling based on the return. Do only those projects which will bring you a significantly higher sales price or greater family pleasure.
Improvements and upgrades cause anguish for most sellers, because a seller wants to recover the full dollar value of the improvements. The industry standard suggests you will get back about 40 cents on every dollar. Don’t expect to recover the full amount.
For Example, if you put in improvements totaling $10,000, you should expect a net return of approximately $4,000. As a seller, you must remember that you put in that nice brick walkway because you wanted it, not for its resale value.
What should you remodel?
Average 2007 cost vs. a value report – average ROI
Deck – 85.4%
A major kitchen remodel – 78.3%
A bathroom remodel – 78.3%
Kitchen and Bath remodels are always safe to consider for good dollar return on your investment.
Know this answer; are you adding something to the home that will bring you and your family pleasure and enjoyment or are you adding something to add value?
Two very different considerations.
Areas of remodel that will bring you only marginal return on your investment are:
1. Home office
2. Sunroom additions
3. Family room additions
4. Master suite additions
Regional differences are also a consideration.
In the West Kitchens and baths are big.
East coast and North leans more to siding, dual pane window and energy types of remodeling.
The South is big on family rooms, sidings, kitchens and replacements.
And the Mid West leans toward kitchens, baths and decks.
Summary
Overall the two normally safe areas to consider upgrading and remodeling for the greatest return on your investment, are bathrooms and kitchens.
You need to answer these questions before you begin:
1. Why are you remodeling?
2. Who will do the remodeling?
3. What are you going to remodel?
4. How long do you plan to stay in the home?
5. How will you pay for the remodel?
6. What return on your investment are you expecting?
If you answer these questions and plan your project, you can probably recoup between 40 and 80 percent of your remodeling costs.
Article Source: http://EzineArticles.com/?expert=Wee_Dilts
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So How Do You Remodel A Bathroom?
How to Remodel Your Bathroom
Bathroom remodeling not only adds beauty and enjoyment to any kind of home, it also increases the value of your home when you wish to sell your house in the future. Bathroom remodeling is perhaps the most popular project for home improvement because it yields the highest return on your investment. Moreover, homeowners can enjoy their relaxing bathroom from the time they remodel until they decide on selling the house.
Tips for Bathroom Remodeling Design
The task of remodeling your bathroom is difficult and can be costly There are several key fixtures to consider when you work on your bathroom. And yes, most of them are expensive. There is flooring to consider, as well as the paint, and the result of anything going wrong is you will end up with place that you spend a lot of time in while not enjoying the room. So good planning is essential.
Of course, to be successful, you need to design your remodeling project well before you swing a single hammer. If you take the time to work out a well-planned bathroom remodeling design, a wonderful bathroom is sure to follow.
Map it Out
When you are working on the design for your bathroom remodeling project, make sure to take accurate measurements of your bathroom and create a map to work with. Mark where the plumbing is, mark where your fixtures are, and you’ll be able to better plan what you need to do. The key to a great bathroom remodeling design is good planning, and a map is a great way to keep you focused on exactly where everything needs to be. Draw it out and plan it on paper. It can be a good idea to cut out your main pieces and try them on your map to see how they fit and what they are likely to look like.
There is also software available that can help you plan a bathroom remodel. The simple packages allow you to do the same mapping exercise as above, and the more complex and expensive can even build a ‘virtual bathroom’ so that you can see the results of your planning.
Function Before Form
The secret of a comfortable bathroom is to put the function of your bathroom above what it will look like. No matter how gorgeous your bathroom looks, if you have a poor design, one that makes your bathroom uncomfortable to use, you won’t enjoy it. Throughout your bathroom remodeling design process, consider what you want your bathroom to do and work towards that goal.
Consider Your Fixtures
Make sure to learn exactly where your fixtures will go when designing your remodeling project; you will need the plumbing there to accommodate them. Your sink, tub, and toilet are going to be exactly where you have them right now, unless you can somehow move the the plumbing. In most cases, the location of your fixtures is going to be a hard limit, so plan accordingly.
Locate Things Sensibly
When you decide where smaller fixtures, such as the towel rack or even the toilet paper roll, go in the bathroom remodeling design, keep in mind that they should go in places that are sensible, once again going back to function over form. The towel rack might look nice by the door, but if it’s out of arm’s reach of the bathtub, then you won’t be happy whenever you get out of the shower, for example. With all things in bathroom remodeling design, if you design with an eye for common sense and space, you will be successful in your attempt to create a room that’s both stylish and functional.
Focus on your walls, ceiling and tiles because these three items can greatly influence the outcome of your project. Mix and match the colors by using pastel, earthy, contemporary or traditional colors that fit your taste. Be aware that whatever items, equipment and furniture you wish to add to your bathroom should add warmth and relaxation to the room.
You can create your dream bathroom by expanding the area and separating the toilet from the bath area. You can even add spa treatments, bathtubs, water jets and other more expensive bathroom add-ons. If you have no idea where to start and what items to add, you can always look at a home-improvement magazine and check out the latest bathroom trends.
Know Your Budget
The extent of your bathroom remodeling project will all depend on your budget. If you have a large amount of money for your remodel project, you can start designing your bathroom from scratch. However, you can still remodel your bathroom even with a small budget. Just change the light fixtures, accessories and bathroom furniture.
Designs, Accessories and Furniture
When you decide to start a bathroom remodeling project, it is quickest to organize your goals before shopping for materials. determine on what items you want to replace, add or take away from the bath area. Think about refinishing existing items such as bathtub, shower, sinks and toilet or renewing the tiles, tub and shower enclosure to give a current look to your bathroom even with little investment.
Bathroom Remodeling Check List Helps Keep Project On Track
Renovations in any part of your home can easily get out of hand, both in the terms of time and in costs, but using a bathroom remodeling check list, you can maintain control of your budget as well as keep the job on track. As part of your planning process, a bathroom remodeling check list can also help you determine how much of an upgrade you can afford.
Some of the major items on your list may include any electrical work you may need, plumbing changes or additions, heating and cooling as well as any walls that will need to be moved or repaired. As some of the first things listed on your bathroom remodeling check list, you can also determine the timing of contractors. For example, if you are going to replace an existing tub and wall tile, plumbing work will need done, but having a carpenter handy for installing modern drywall will need to be done first.
In addition to the major work, also listed on your bathroom remodeling check list would be any components, such as cabinets, fixtures and countertops. You should also list the type of countertops you plan to install as well as the floor, the sink, storage cabinets and any free-standing furniture.
Having a column on your bathroom remodeling check list that shows the amount budgeted for each item will help you stay in control of the costs of the project. When buying the items on the list and you decide to go over the cost for one item, you can always pick a cheaper model on another component to stay on budget. By looking at the costs before you go to the store, you can have a good idea of what you are likely to spend.
Once you have determined the exact cost of your project using the bathroom remodeling check list, you should budget another 10 percent of the total cost for contingencies. For instance, when you are cutting out the wall for a fresh fixture you accidentally cut through a water pipe and your current drywall is ruined. The contingency budget can pay to replace the cut pipe as well as the ruined drywall.
You may also plan on the time each item on your bathroom remodeling check list should take to complete as a way of keeping the project on track. You will know during the planning stage how much each item should cost, how long it should take as well as what part of your bathroom is not going to be touched during the project.
If you don’t have the money to hire an architect or contractor for your bathroom remodeling, you can do the work yourself by focusing on simple things that can give a dramatic change to the bathroom. For instance, add a vanity mirror or a shelf and display small items such as perfume bottles, soaps, bath salts, spa accessories and other items you wish to display.
Article Source: http://EzineArticles.com/?expert=Steve_Dolan
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The Pros and Cons of Bathroom Remodeling for Resale Homes
On each flip project a decision must be made as to whether or not the bathroom(s) need to be remodeled. The decision to remodel the bathroom of an investment property is one of the biggest you’ll make as it will also result in one of the largest costs in terms of time and money. The net financial result is what should concern you. Will the remodeling yield a profit on it’s own, or at least contribute proportionately to the overall profit.
The Pros of Remodeling the Bathroom of an Investment House:
Give it the WOW factor! The Wow factor is probably the major reason you would renovate the bathroom. There are three rooms that you want to be impressive; and the bathroom is arguably number one. Mr. and Ms. Buyer will often make their decision based on the condition of the bathroom.
Whether you choose to remodel the whole thing or just replace certain components should be based partly on the practicality of the bathroom in the buy-decision. Done properly a bathroom renovation could well be the deciding factor between getting your price and not selling your house.
An ugly, poorly maintained bathroom will have the potential buyers lowering their pricing expectations disproportionate to the amount it would cost to renovate it. A buyer purchasing a renovated house has expectations that certain things are in good shape – that’s why they’re buying a house that’s already been renovated.
Whether it’s a face lift or a total gut, that one room can make or break the deal.
If you’re working with a very limited budget you can decide which particular parts of your bathroom that you would like remodeled, such as the tub or the toilet or the sink.
If money is not an issue, you may make the decision to remodel your whole bathroom. In addition to deciding what parts of your bathroom you would like remodeled, you will also have complete control over the products and materials used.
For instance, if you wish to replace the toilet, you can choose the quality which suits the budget. What matters is that it’s new. Knowing that the toilet is new and has never been used is a big deal to some people. They may think “I will replace that toilet someday”, but it’s good enough to help facilitate a good overall impression.
Bathroom remodelling can be relatively easy to do depending on the depth you want to go. It is something an average handyman can do by themselves in order to save expenses.
Although you can save yourself money by doing your own remodeling, you may not want to or you may be unable to do so. If that is the case, you still have a choice. That choice is seeking assistance from a professional contractor.
Despite costing more money, your bathroom will be remodeled professionally and often in less time.
It is also important to mention that bathroom remodeling projects can help to increase a home’s value. That is one of the biggest pros to having your bathroom remodeled. The increase in value, if there is one, will depend on a number of different factors. Those factors include what type of remodeling is done, as well as how well it is done. Whether you choose to hire the services of a professional bathroom remodeling expert or if you have prior home improvement experience, the decision to remodel your bathroom could significantly increase the value of your home.
Although there are a number of pros to bathroom remodeling, there are also a number of cons. Those cons mainly include the cost of doing so. When it comes to deciding whether or not you want to remodel your bathroom, you will have to make up your own mind; however, when doing so you may want to keep the above mentioned points in mind.
The Cons of Remodeling the Bathroom of an Investment House:
There are two major cons to remodeling for a flip; cost and the impact of a poor job.
If you are contemplating a bathroom remodeling project, these cons may make you want to rethink your decision.
The biggest con to remodeling is the cost, particularly if you go high end on your fixtures. Remodeling for resale is not the same as remodeling for yourself. You must keep this in mind for a flip. The character of the end result should match the character of the house not your idea of what the perfect bathroom should be. Remember, you are in this for profit.
The extent to which you remodel will affect the price as well. If you gut the bathroom down to the joists you will be looking at a lot more than if you simply replaced the toilet and added a tub surround. In addition to the cost of supplies and materials, you also need to determine whether or not there will be any additional costs. For instance, if you make the decision to have your bathroom professionally remodeled, you will need to pay a professional contractor. Although a professional contractor often produces better results, you will find the cost of hiring one fairly high.
In addition to the cost of bathroom remodeling, it is also important to note the time that it will take. How long a bathroom remodeling project lasts will all depend on what is being remodeling. If you are simply looking to replace your toilet, you will find that your remodeling project takes less time than it would if you were planning on remodeling your entire bathroom. The amount of time it takes for remodeling will also depend on how much time can be devoted to it. If you make the decision to hire a professional contractor to remodel your bathroom, the remodeling will likely be done quicker. In addition to knowing exactly what they are doing, professionals can usually devote more time to work than someone who is only doing the work on the side.
Another one of the many cons to remodeling your bathroom is what it can do to your home. As you may already know, it is possible for a bathroom remodeling project to increase the value of your home. While an increase is likely to occur, it is not guaranteed. If your home’s value does increase because of a bathroom remodeling project, it will all depend on how much remodeling was done and the result of that remodeling. A professional or quality remodeling job is likely to produce the best increase in value.
What you need to be aware of is what a poor remodeling project can do for your home. There is a chance that a poor bathroom remodeling project could also decrease the value of your home. The chances of that happening are slim, but there is always a chance.
As previously mentioned, when having your bathroom remodeled, you have a choice as to whether you want to do your own remodeling or a have a professional do it for you.
When it comes to bathroom remodeling, you will find that are more cons to do it yourself bathroom remodeling.
As you can see, there are a number of bathroom remodeling cons. Although it may seem as if it isn’t worth it to remodel your bathroom, there are also a number of bathroom remodeling pros. These pros include a new bathroom and the possibility of increasing your home’s value. If you are interested in remodeling your bathroom, only you can decide whether or not it would be worth it and given your skill set and time, what the best approach would be.
Article Source: http://EzineArticles.com/?expert=Steve_Leighton
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