If you’re thinking about a home renovation project, Remodeling Magazine just released its annual Cost vs. Value Report. The report ranks remodeling projects by their return on investment – aka their value on resale vs. their original cost. According to Remodeling, here are some home renovations worth considering right now:
Energy-efficient upgrades
Making energy-efficient upgrades to your home can help cut your energy bills in the long run. Some upgrades can even qualify for a federal tax credit. According to Remodeling, converting from an oil or gas furnace to an electric heat pump is the most cost-effective project in 2023, returning 103.5% on the investment if you decide to sell your house. We’re doing one of these projects now!
Exterior renovations
Remodeling Magazine rates exterior renovation projects such as adding stone veneer, replacing exterior doors, and installing new garage doors among the highest returns on investment. For us, those projects are often accompanied by adding decks, porches, or patios, which also add significant value to your home.
Kitchen remodel
A kitchen remodel is one of the most popular home renovations, and for good reason. Done properly, a new kitchen can increase your home’s value significantly. But the best reason to redo your kitchen is to live better in the home you love. “A kitchen remodel usually includes other changes like removing walls or adding access to the outdoors, both of which can change how you live in your house,” says Pete Cooper, our CEO. “So, a kitchen remodel pays off in more intangible ways, too.”
Bathroom remodel
A bathroom remodel is another excellent way to improve your home’s value and functionality. New bathrooms are more energy-efficient than older ones, and they can also make your home more accessible for people with disabilities. We’re also seeing clients adding luxury touches like Japanese soaking tubs, curbless showers, and even chandeliers!
Additions
An addition is a great way to increase your home’s usefulness and value. Adding the right kind of space – a mudroom, an additional bathroom, a home office, or a larger kitchen – can make your house more livable and enjoyable.
Other considerations
This is still a great time to remodel your home. According to Realtor.com, in June 2023 the median home price in Chester County was $575,000, up 9.5% from a year ago. The average 30-year mortgage rate in the first week of August 2023 was 7.62%, compared to 4.7% a year earlier.
These two facts alone should let you breathe easier if you’re thinking about a remodeling project. If you live in Chester County (or any of the Philadelphia “ring” counties), It’s very likely that your home is worth more than ever. That means borrowing against it to finance a remodeling project is easier, and you’re probably able to borrow more than you could have a year ago.
There’s more good news: labor and material costs are starting to come down. After two years of skyrocketing prices, the cost of materials and labor for home renovations is dropping. The supply chain has eased and new home construction has slowed, so materials are generally more available than before.
Financing
This is a good time to remind everyone that we now offer financing for our projects through our partner, Renofi. RenoFi‘s Renovation Loan is tailored to the needs of many of our clients because it’s based on the value of your home after renovation. This means that if you’re still building equity in your home you can borrow against its future value. This effectively lets you get the most money and the lowest monthly payment for your renovation compared to other types of loans.
So, if you’re thinking about a remodeling project, now might be a great time to dive in. Give us a call if you’d like to talk it over!
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