It’s not your contractor. It’s not your designer.
It’s your realtor.
Because one day you’re gonna want to sell your home. You will want all that time and money you spent on the renovation to have added value. Having a great designer and using the best contractors are wonderful things to do, but only your realtor will know if the work you’ve done added value. And let me tell you, NOTHING you do to your house will get a 100% return on your investment.
Here are some things to think about as you plan a renovation:
- Don’t over improve. If you live in a half million dollar neighborhood, don’t pick million dollar neighborhood materials. Yes, buyers will love the unexpected upgrade but you will be effectively giving it to them for free. Always keep the level of materials suitable to what people expect for the price range of the neighborhood.
- Don’t add too much square footage. I have seen some crazy additions where people end up with the biggest home in the neighborhood. That’s never a good idea. The buyers that want such a big house will probably want to be in a house surrounded by similar sized homes. The people wanting to be in your neighborhood probably aren’t going to want to pay you top dollar for the extra square footage. Also, appraisers usually give credit for square footage tiered to the price range. That means the more affordable your neighborhood is, the less an appraiser is going to value your excess square footage because they will be using recent sales from the neighborhood for comparisons.
- Don’t make crazy compromises. I have seen some wonderful additions but due to the existing floor plan of the house, you have to do something crazy like walk through a laundry room to get to the amazing new space. Buyers don’t like that. Yes, you’ve gotten used to it and it works for you but it will be a deal breaker to a buyer. The flow of the addition is very important.
The bottom line is that you want your house to still fit the character, size and price range of your neighborhood. Be sure to go over your plans with your realtor before committing to the job.