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How can one be sure than an expensive home renovation project will increase the value of the home?

Asked by Trulia Fort Lauderdale, Fort Lauderdale, FL Thu Dec 13, 2012

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Answers

5
You can not!
Why?
Because you have not provided sufficient data for ANY determination to be made.
Even if such details were provided, the quality of those renovations is crucial.
If the home was expensively and lavishly renovated to meet the needs of an NBA ball player, the rest of the population will simply be too short to enjoy those 'larger than life' attributes.
There is way too much we do not know.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Mon Jan 7, 2013
If it is your intention to sell the home after you renovate, employ the services of a local real estate agent before you spend any money. S/he will know what will provide the best return - some improvements will make the property easier to sell but may not provide a 100% return.

If you intend to continue to use the home for your own enjoyment, spend the money where you will get most personal value - if you would really like a pool,then put in a pool. When you do come around to selling the pool will add some value (either price-wise or marketing-wise) but will not provide any substantial return on your original investment but how much value did you, your family and friends get out of it for all those years of use?
0 votes Thank Flag Link Mon Jan 7, 2013
Trulia,

Here are two great resources for more information on home renovations:

Zillow: The Value of Home Improvements
http://www.zillow.com/howto/ValueOfHomeImprovements.htm

HGTV: Biggest Renovation Mistakes
http://www.hgtv.com/home-improvement/25-biggest-renovating-m…

Sometimes just clearing clutter can help sell a home faster. Here's a great blog on the topic:
http://luxurylivingfortlauderdale.com/clear-clutter-to-sell-…

Good luck with your renovations!

Chad Gray PA, Realtor
Luxury Living Fort Lauderdale
Coldwell Banker Residential Real Estate
754-300-6040

100% of clients rated our service as "EXCELLENT"!
http://luxurylivingfortlauderdale.com/what-clients-are-saying/

.
0 votes Thank Flag Link Fri Dec 14, 2012
Not all renovations all equals (in added value); It is easy to go overboard/over improve (based on the neighborhood' property value), so watch out...

For details, check out Remodeling Cost vs. Value Report 2011-12 at:

http://www.remodeling.hw.net/2009/costvsvalue/division/south…

Meir Aloni & Team

CRS (Certified Residential Specialist)

CDPE (Certified Distressed Property Expert)

RECS (Real Estate Cyberspace Society)

Successfully selling Broward County since 1986!

Direct phone# 954-338-5220 http://www.WeSellBroward.com

All Star Realty Inc.
0 votes Thank Flag Link Thu Dec 13, 2012
Renovations will surely increase values of properties but there are many factors that will affect increases in values after a renovation. Also, one must understand the expectation of those increases of values.
1- Best buy: Buying a property at the right low price and renovate it is the way to do it but the catch is to know which property to buy at the right price. That is an art. Most people think they can do it but they fail.
2- Neighborhoods. Not all neighborhoods hold the same value trends: For instance, properties on the east side of Federal Hwy can host eclectic properties (an old 1955 rancher house on a canal, completely redone, value in an average of $1.2 to $1.5 million next to a newly built 2 story mac-mansion valued at $3.5+ millions). But there are neighborhoods west of Federal Hwy where property values have to remain fairly consistent. There is no such a thing as a $300K house next to a $700K house.
3- Long-term investment: Now-a-day, we are seeing again many flip properties but those properties were bought by professional investors who, somehow, bought chunk of toxic assets directly from lenders at only a few cents on the dollar. Then, they have fluffed up those properties and turn-them around for a nice quick profit. But, for the very small investor (the "only one or two property owner") who want to buy a fixer upper and fix it, that's OK as long as the buyer is willing to live in the property for a few years and eventually sell it at a moderate to handsome profit.
Quality of improvements: People can do a Home Depot, do-it-yourself, low budget improvements in a house in Coral Ridge while a neighbor on the same street with a similar house may have hired professionals to improve the property from A to Z; that property can fetch $200K more than the other one. However, the Home Depot special guy is convinced (due to pride) that his improvements are just as nice as the neighbors and he will have the audacity to ask nearly the same price as the neighbor's, and house is not selling, even after reducing the price two or three times. HELLO!!! But that's human nature.
0 votes Thank Flag Link Thu Dec 13, 2012
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