With home prices rising all around the Portland area, now is a great time to think about remodeling your home. Prices in Portland and outlying areas like Tigard and Tualatin have risen by as much as 23% in the last year. You may be looking to remodel your home to add value for a sale or just to modernize your space. Either way, you’re probably wondering how you can get the best return on your investment, or ROI. Remodeling can sometimes be costly, but at T.H.E. Remodel Group, we believe in working closely with you and respecting your budget so that you can get the most bang for your buck. Read on for 4 tips to keep in mind in order to maximize your return on investment when remodeling your home!
#1 Remember why you’re remodeling
There are two main reasons why you might want to remodel your home. You’re either interested in improving the liveability of your current space, or you’re interested in capitalizing on today’s hot market. Depending on your reasons for renovating, you’ll have different priorities.
If you’re planning to sell as soon as possible, remember that today’s remodel is tomorrow’s project. Your kitchen might look fantastic after a remodel. However, 5 years later, a prospective buyer might think it seems dated. In a hot market like Portland’s, that timeline could be even shorter than 5 years. If you want to maximize your return on investment, you might benefit from T.H.E. Remodel Group’s design-build services. We’ll make sure your design is on-trend, but also future-proofed. We focus on emerging trends, rather than ones which have almost run their course.
However, if you plan to stay in your home for a while, you might have a more flexible schedule. In instances like that, consider what changes to your home will make you happiest and find a contractor who is client-centered and willing to work with you, like the talented people here at T.H.E. Remodel Group.
#2 Keep the budget in mind
Remodeling can be expensive. If you’re investing in an updated living space, you want to be sure your money is actually adding to the value of your home. You might see a $20,000 or higher price tag and wonder if you really need an updated kitchen or entertainment room. In moments like these, it’s best to think long-term. $20,000 might seem like a lot of money, but when spread over 10 years, it only comes out to around $160 a month. You might pay more for your cable or car insurance. If you’re renovating your home with the intent to live there long-term, then thinking of price in this way is helpful. The increased function of a remodeled kitchen or the comfort or a new master bath might just be worth that monthly cost, especially if you’ll be in the house for 5 or 10 years.
On the other hand, if you’re remodeling to sell, there are different ways to approach your remodel. You might focus more on surfaces and fixtures with the intent of making your home on-trend for interested buyers. On the other hand, even a minor bathroom remodel can result in dramatic return on investment. Spending $9,000 to update your bathroom can result in an ROI of almost 200%. In other words, updating your bathroom could lead to an $18,000 increase in home price. Not bad!
This is where it’s important to consider project scope. A complete structural remodel, which can involve adding or removing walls, will affect your budget differently than a pull-and-replace. When planning your budget, consider whether or not your home has good bones and would benefit from a pull-and-replace or if it needs more serious structural changes. In fact, with some homes, it may not even be worth remodeling. If you’re thinking of tearing everything out and starting fresh, you might consider just building a new home instead of pouring money into a remodel. Your home should suit your needs. Remodeling is just one of the ways to achieve that.
#3 Remodel the right rooms
If you’re interested in selling quickly and want the biggest bang for your buck, there are two rooms in the house that deserve special attention: the kitchen and the master bathroom. We mentioned it above, but it’s worth repeating. Bathroom remodels can sometimes have a 200% return on investment. Meanwhile, kitchens often provide a triple-digit return on investment too. A $15,000 investment can increase a home’s sale price by around $27,000. Sure, you’re spending money, but it’s giving you a dramatic boost in sale price. Other remodel items, like an expanded patio or new garage, might seem appealing, but projects like these usually don’t result in the same kind of ROI. In fact, patios might have as little of a return on investment as 30%. It’s not bad, but it’s nothing compared to a kitchen or bathroom remodel.
On the other hand, if you’re remodeling your home for yourself, you might not need a new kitchen or bathroom. Maybe you’re more interested in an updated entertainment space. You should remodel your home with your wants and needs in mind. But that doesn’t mean you shouldn’t think about an updated kitchen or master bath. The kitchen is the heart of the home and a poorly-designed kitchen is almost worse than no kitchen at all. And remodeling your master bathroom can transform it into an escape, with a big shower or comfortable tub where you can forget your troubles for a little while.
#4 Pick the right contractor
It’s important to find a contractor who understands the market, offers years of experience, and has a finger on the pulse of design. While this might sound like a lot, thankfully you’re in the right place! T.H.E. Remodel Group is perfectly positioned to help you get the most out of your remodel. Our unique design-build method allows us to help you make the best possible design decisions starting from day one. We don’t want your kitchen to be out of style as soon as it’s done. Additionally, our excellent customer service is about more than just answering your questions. We want to understand the end goal for your remodel and find the best possible way to achieve it. Whatever your remodel looks like, we can help you maximize your budget and get the best possible ROI. With more than 30 years of experience in the Portland area and a history of working within your budget and on time, we can make your dream a reality!