One of the big questions homeowners in the Naples area ask when considering a remodeling project is whether the change makes financial sense. That’s a smart question to ask. It’s important to consider the return on investment when you spend money to update your home.
Historically, there are certain home remodeling projects that pay a higher dividend when it’s time to sell your home, and it’s a good idea to keep an eye on how the improvements you make to your home can affect its future value.
In the 2016 Cost Vs. Value Report, different remodeling projects were ranked based on their potential job cost and cost recouped to the home for resale. Here are their findings, ranked on the popularity of the remodeling projects and showing the average ROI for each project.
There is another kind of return on investment that is difficult—if not impossible—to measure in terms of dollars and cents. This kind has more to do with enhancing a home’s comfort, security and convenience, as well as an owner’s enjoyment in the home.
NARI (The National Association of the Remodeling Industry) calculated a “Joy Score” for each project, based on the happiness homeowners reported with their renovations. What’s interesting (and we think significant) to note is that some remodeling projects that didn’t “pay off” quite as well financially actually brought homeowners more joy!
That’s the big “X” factor in home remodeling. Your home is more than an investment. It’s the place you live and build memories and enjoy being—whether it’s for your own personal comfort or while entertaining others. So, while it’s a good idea to keep your eye on the bottom line, it’s also important to look beyond the bottom line to determine the real return on your investment.