Why Renovating Your Home May Be a Good Idea
Is now a tough time for renovating a home? We will discuss why now may be the best time to renovate and the best type of renovations to consider.
Remodeling Your Home in 2022
US news authored an article regarding 3 things you should know about renovating in 2022. They are as follows:
- Renovations need thoughtfulness, patience, and cash.
- The price gap between renovated and unrenovated homes is widening.
- Four questions to ask yourself before you renovate.
The four questions involve the following:
- Connections?
- Do You Need Another Place to Live?
- Vision?
- Bandwidth?
Now, all the above questions involve the type of renovation that is large and disruptive to daily life. There are less expensive renovations that can still increase the value of your property. The important thing that is noted is the importance of remodeling in today’s market.
“We have definitely noticed a trend which favors properties that provide instant gratification,” Chingas says. “Recently built homes or those that have been remodeled to mirror the taste of today’s buyers are getting the most offers and selling the fastest.”
Renovating Your Home During a Recession
There are many articles being written about whether we are currently in a recession. But this is not what we will focus on.
But if we are in a recession, does it reflect the same reasons for renovating a starter house as it did back in 2009. According to this article “a recession is a pretty good time to renovate that starter home, as long as the project will add good value for minimum investment.” Now suppose you have been living in your home for a long time, even better. You may be adding value to your existing home which can improve the equity.
The ROI of Renovations
To dive deeper into the ROI of home improvements, we cite the balance. For example, a 2022 study from the National Association of Realtors and National Association of the Remodeling Industry, looks at interior and exterior remodeling projects.
Here, we list the top five in each category.2
| Interior project | Recovery cost percentage |
| Hardwood floor refinishing | 147% |
| New wood flooring | 118% |
| Insulation upgrade | 100% |
| Basement conversion to living area | 86% |
| Closet renovation | 83% |
One of the latest updates that are gaining a lot of interest is the home office. After experiencing the pandemic move to remotely working, we can understand the appeal.
Before we go, we will leave you with the takeaway from investopedia.com. The most important approach is to do the research before you jump into renovating. Not all renovations send the sale price soaring!