You probably didn't but homeowners spent $130 billion on remodeling last year -- the largest amount since 2007. And more and more people are starting to update their home as the economy begins to move forward. In fact, Harvard’s Joint Center for Housing Studies expects double-digit gains in this spending category through the remainder of this year.
And there is some good news about remodeling depending on what you do. Consider this: According to the annual Cost vs. Value report from Remodeling.com, when you sell your home, you’re likely to get back as much as 97% of the money you spent (back) on some improvements -- but only around 50% on others.
To put that in perspective, it means if you spend $125,000 on a project, you could see as much as $120,250 – but also as little as $36,500, in your sale price. It's tricky business so take a look around your neighborhood, find out what projects are being done and what price people are getting once their homes are remodeled. Use this information as a guide.
A recent project in the Racquet Club Estates in northern Palm Springs is a great case study. An investor purchased a classic mid-century for $365,000. It had been on the market for more than 90 days and was in pretty bad shape. But after a fairly extensive remodeling, the owner sold the property for $570,000 in just a few days after going on the market.
Thinking about a remodel? Call us and we can help you with an assessment of the possibilities. And one more thing,.... remember that one key to success is, as they say,... location, location and location.
Michael is an award winning interior designer based in Palm Springs, CA. He is a Professional Member of the American Society of Interior Designers and a member of the ASID College of Fellows.
As a Certified Aging In Place Specialist, he creates smart looking spaces that are safe and secure and create homes for a lifetime.
And with thirty plus years in the profession, he has honed his humor, elevated his passion for design and sharpened his wit to not take anything too seriously except his design work.