When renovating a home, it’s always important to have a good handle on what your home is worth before you start and what it will be worth, or at least should be worth, when the work is done. We often see people spending  too much money on their renovations and then when it comes time to sell their property, they realize that they’ve priced it “out of the market”. For instance, if you buy a home for $300K and spend another $150K on renovations and improvements and at the end of that work, value of the property is $425K, you’ve priced it out of the market by about $25K

Of course, it’s important to consider how long you plan to stay in the house too. If you plan to stay in the house for several years, then you will obviously have more time to realize a better return on your investment. It’s also important to consider your lifestyle. For example, perhaps you’ve always dreamed of having a fantastic pool and even if the market doesn’t indicate that your property can warrant the expense of a pool, the value may be there for you and your family.

We would always suggest that you speak with a professional before embarking on any kind of major renovation. This is a value-added service of a Realtor. We help guide our clients through their decision-making process and help them sort what the best investment is going to be, balancing their own needs while protecting their investment. Remember, it’s always important to plan your renovation with the market in mind!