4 Things to Look For When Investing in Home Renovation Projects

4 Things to Look For When Investing in Home Renovation Projects

  • Nicola Taylor
  • 08/3/22

Thinking about home renovations can seem easy in concept, especially with so many people pushing DIY projects. However, here are a few things worth considering before diving into your latest renovation project.

Return on Investment

When you’re renovating a home, whether it's to upgrade it so that you can live in it now or because you’re looking to sell, one important thing to look out for either way is what the return on investment will be for that specific project you want to work on. Home renovations can come with a large price tag in many scenarios, so it’s always good to look at whether or not this cost is worth what it is that you will get out of it in the end. Many home renovations have fantastic potential and opportunity to increase the value of your home if you decide to sell it, however, some have been found to not have a high return on investment or any at all. Doing your research on this can help you immensely.
Naturally, you might now be wondering which renovation projects are the ones that typically can give homeowners a high return on their investment. Some of them that have been proven time and time again to have the highest returns include kitchen renovations, upgrading hardwood floors, making more functional spaces, and renovating bathrooms, according to Forbes. Even just small renovations that are practical, can also have good returns, such as fixing the roof. There are some renovation projects though, that can be the exact opposite. These are ones that either have a low return on investment, or you can end up losing out money, decreasing the value of your home. One common example of a renovation project that does not typically have a high return on investment is the addition of a swimming pool. Having a low return on investment does not necessarily mean you should not do these renovations under any circumstances though, especially if you plan on staying in your home for a long time. If this renovation is important to you and your family’s lifestyle then it may be worth it to you. It is good to be aware of it and to know what it is that you want out of your renovation. Depending on what your priorities for this potential upcoming home renovation project are, return on investment might be a factor you should look out for.

The Hidden Costs

While knowing something has a generally high return on investment is an excellent start, there are many hidden costs that the average person may not think of right away when it comes to home renovations. Knowing exactly what the home renovation project you’re taking on requires financially can help with planning and knowing if the project is worth it a lot. Home renovation costs can add up a lot more quickly than what you might originally expect because there are a lot of different things that go into these renovations that cost money. Everything will have a price tag, from any professionals you hire to any permits or contracts that might be needed, the materials to actually do the renovation, and more.
If you miss any of these costs, then you might underestimate the total cost of the project you’re thinking of undertaking. Once you’ve done some research on the cost of the type of home renovation project that you want to take, then you can look into the costs that are associated with whatever project you want to do. After that, you can create a more accurate plan and a budget that you can try to stick to, and decide if the total cost of the renovation project is worth it to go ahead with.

Time of the Project

Time is precious, so when you’re considering a home renovation, it can be a good idea to think about the timing of it all. Serious questions you can ask yourself and do research on are, “How long is this project going to take?” and “How will this impact your day-to-day living?” Some renovation projects are certainly bigger than others, so it is good to know what to expect and if it's possible for you at the moment. Once you know the estimated amount of time it should take, you can help yourself and your family plan for this.
Home renovation projects can range from anywhere from a few hours to weeks, or even months potentially. If it’s a project that will take weeks or months, plan for how this might impact your day-to-day life when it is going on. If you’re not home a lot of the time or are generally busy, this can sometimes make it difficult to get larger renovations done. Therefore you really have to plan and make sure you know what the expectations are before you go into the actual renovation process. Really think and reflect on whether or not it's feasible for you, and what you can do to make it fit with your current lifestyle if you foresee it being an issue.

Getting it Done

If you’re planning for a renovation, someone is going to have to carry this renovation out. Is it a renovation you want to do yourself or with people you know, or will you hire a professional that will do the renovation project for you? This answer is of course going to depend on a variety of different factors and can be very personal to you and your situation. If it is just a small repair or it is something that you are experienced and comfortable with, you might be okay to do this by yourself. It is a good idea to consider hiring professionals for larger and longer home renovation projects or even smaller ones that you don’t have the experience or comfort with.
There are many benefits to hiring professional help to carry out home renovation projects. The first is that it’s just less work for you. Even more importantly though is that you will know that you are being safe. Safety is always important, and if you carry out a renovation without using the proper equipment, having professional training, or having the right protective gear, there are many risks involved. Hiring someone else also means you also have a much higher chance of the job being done right, with no mistakes. Some mistakes can end up costing you a lot more money depending on what it is. By hiring a professional, all of these things are ensured, you will know that you are being safe, and you are much less likely to run into large errors. So it’s a good idea to find referrals from people you trust to find the right workers who specialize in whatever type of home renovation project you are looking to do.

Looking for a Real Estate Agent?

If you’re doing a home renovation project and are planning to sell your home soon, it can be a good idea to get some support from an experienced real estate agent. If you’re looking for a Potomac or Bethesda real estate agent, be sure to get in touch with Nicola Taylor. She can help you find the luxury home of your dreams!

Let's Work Together

As an accomplished real estate consultant and investor in the greater Washington, D.C. area, Nicola has more than thirteen years of experience. She is a radiant, warm and joyful Jamaican native who has grown her career over the past decade with an abundance of sold homes in the greater Washington D.C. area.