Home renovation usually is deemed to be more practical and certainly less expensive in the Greater Springfield Missouri markets than buying a brand new home. It is also generally looked at as an investment precisely because renovations make it easier and faster for people to sell their houses. In other words, it increases, often quite dramatically, your home’s equity.
If you are one of those people who look at renovation as an investment, you have to be aware that there are several things which need to be taken into consideration. For instance, if the market value of your home is higher than the average for your neighborhood, chances are you will have a low return on the renovations you made. However, if your home is lower than the average for your neighborhood, you can expect that your return on the renovation will be higher. Bottom line is – renovations will work in your favor if your home is located in an appreciating area.
It is also good to take particular notice of how many rooms do the homes in your neighborhood generally have. If most homes from your neighborhood have three or more bedrooms, then it pays to renovate your home and add in some more rooms.
If you are really bent on making an investment out of your renovated home, heed the advice that renovations should not increase the value of one’s home higher than 15% above the median sale value of other homes in the area. Setting a limit of a 15% increase when you do renovation is said to allow you to have a maximum resale value.
Another important consideration that you should make before deciding on renovating your home is that you should have understood fully well the financial details of your planned renovation. You need to know the costs so get quotes from contractors and architectural firms in your area.
Are you looking for financing assistance to effectively renovate your current home or a home you are interested in buying? If “yes”, then interestingly enough, PrimeLending in Springfield offers Rehab Loans. Some realtors call this Rehab money. These loans are specifically designed to help the homeowner cover the fees of renovating their homes. Contact us today and find out the opportunities we have in store for you.