A major home project, such as a kitchen or a bathroom renovation, is almost always a source of stress for those affected. Aside from the upheaval of accommodating construction phases and compromised living spaces during the project, the planning process can take up quite a bit of time and require a lot of big decisions.
As part of the planning, evaluating the project’s budget and its impact on value should be considered a top priority. Even if a homeowner is fortunate enough to have the means to pay any price, every major real estate improvement should be measured as an investment against its market potential.
For example, funding a major project may require a loan secured against the home’s overall value, now and in the future. So, regardless of how much pleasure, convenience or efficiency you may gain from a renovation, it’s important to know that you are making a measurable investment from your lender’s perspective. In other words, the bigger the project, the more mindful you must be about market trends and resale value. With that in mind, if a major home renovation is something you want to consider, don’t hesitate to call for a frank discussion about your plans – and your home’s resale potential.