First Person: Home Remodeling Is No Longer a Good Investment

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As a remodeling contractor in rural communities for many years, I often won bids over competitors by adding services that homeowners would find helpful. One service I performed was taking the project blueprints to the bank or finance company to get a projected cost versus value estimate for the potential client. Until the mid-nineties, a remodeling job often led to an improved bottom line for the homeowner, and being able to show proof on paper gave me the edge in securing a contract.

By the turn of the century, the cost of labor and construction materials had skyrocketed, adding thousands to what once were cost efficient remodels. This made the task of convincing the homeowner to go ahead with the project (even though money would be lost) a difficult sell. Today, the idea of adding equity to your home by adding onto it or by doing a kitchen or bathroom remodel is virtually non-existent.

Now, the cost of a major remodel job will cut thousands from your bottom line. While the cost versus profit ratio varies from region to region, in every case, loss is evident. This chart from, Remodeling Magazine, offers comparisons related to the average cost of the most common remodeling projects in different regions of the United States.

That is not to say, you should let maintenance slide. If your home is on the market, the chances of it selling are greatly increased if the home is eye appealing and not in need of repair. If you do not want to spring for a contractor, and are handy with your hands, you can turn a good buck by tackling projects yourself.

According to the National Association of Realtors, the exterior of your home should be the first area to receive attention. If the paint is peeling, the lawn is not mowed or has a lot of weeds, and the roof looks old and tired, perspective buyers will be turned off.

There are many things a homeowner can do himself or herself that require little more than common sense. Loose siding can be reattached; peeling paint can scraped and repainted. The lawn can be mowed, edged, and reseeded. Driveways can be patched, and windows can be caulked.

Once the exterior is cleaned up, move inside. Check walls and ceilings for cracks and if necessary, fill with spackle and repaint. Move out the clutter to present an airy open look. Clean the windows, and make sure the screens are intact. You may even want to hire a professional cleaning company until your house sells.

Once you have done all you can to improve the home, your odds of selling will be better and you will rest easier knowing you have done your duty and saved a substantial amount of money by taking matters into your own hands.

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First Person: Home Remodeling Is No Longer a Good Investment