“Your home remodel will pay for itself!” You’ve probably heard this before—claims that whatever money you put into your house, you’ll earn it back someday when you sell. But the reality is more nuanced than that. In fact, remodeling strictly for resale value is usually only a wise move if you’re flipping a house—not if it’s a place you plan to stay a while. And while every homeowner wants to increase their home’s value, not all remodeling projects are created equal. Resale value is only one of several factors to consider when planning a remodel. Loving your home is another, and it’s an important one.
A thoughtfully designed, well-constructed home remodel will usually increase your home’s value. But not always. There are several factors to consider.
It’s important to get clear on your plans for the home: Do you plan to sell your home in the immediate future? Is this your forever home? Or do you think you’ll stay a while, but not forever? The answer you give will shape the way you approach your home remodel.
Because while resale value is important, lifestyle value matters too. If your home isn’t working for you now, remodeling it can help you solve that problem—when you focus on creating a smart, functional, beautiful home that supports your needs today.
These terms are often used interchangeably, but understanding each one will help you define your Lancaster home remodeling goals.
The best home remodels plan for an increase in all three of these areas. The potential resale value of your home may matter in your remodel, but if you plan to stay in the home a while, it must serve your needs well. Balancing your enjoyment of the home with upgrades that deliver a strong ROI and increase your home’s value is the remodeling sweet spot.
The reality: While it seems logical to expect a dollar-for-dollar return on your investment, the reality is more complex. Most remodeling projects do increase your home’s value, but not necessarily by the exact amount they cost. The details depend on a variety of factors like
What homeowners should know: The projects that consistently bring the highest ROIs include replacing the garage door and the front door, replacing or upgrading your home’s exterior to fiber cement or stone veneer, and doing minor to mid-range kitchen and bathroom updates. But don’t limit your remodels to these options. A good ROI is important, but it’s only one factor to consider. Your home’s functionality and comfort to you and your family are also critical.
The reality: While kitchens and bathrooms do perform well in terms of ROI, they don’t always have the highest percentages. In fact, high-end or very complex kitchen and bath remodels can have lower ROIs because the costs of luxury remodels are higher. Besides the exterior improvements discussed above, finishing a basement and filling “function gaps” (like adding a guest bathroom where it’s needed) are good options for increasing ROI.
What homeowners should know: While luxury kitchen or bath remodels don’t give you the same ROI as mid-range ones, that doesn’t mean they’re not the right move for you. The best remodel for your home balances ROI and financial goals with your dreams for your space. Financial goals + lifestyle goals + dreams for your home = the perfect remodel.
The reality: It’s actually moderate and mid-range improvements that tend to add more value to a home. Luxury and major upscale remodels can have a diminishing return on investment. There are a few reasons for this:
What homeowners should know: If you’re remodeling before selling a house, mid-range remodels will do better financially. But if it’s a place you plan to stay for a while, you should remodel with your own needs and wants in mind. Don’t do expensive remodels just for their own sake. Make remodeling decisions based on what you love and what will support your family. And if you need information about remodeling prices in Lancaster, PA, check out this price guide.
The reality: Unless you are actively planning to sell your home, this isn’t a good way to approach a home remodel. Here’s why:
What homeowners should know: If you’re not planning to sell right now, treat your home like it’s your home. Instead, focus on smart design, layout functionality, and quality materials that you love. Use your home remodel to enhance your own life, not plan for someone else’s.
The reality: While home improvement ROI is one factor to consider when planning a home remodel, it’s not the only thing:
What homeowners should know: The home remodels that are truly “worth it” are the ones that meet the homeowner’s needs. A good designer will help you think through all aspects of your project and align them realistically with your goals.
Consider resale value and ROI when planning a remodel. But remember that it’s only part of the puzzle. When you work with a design-build company in Lancaster, PA, you get a team that will help you make smart decisions for selling your home later while balancing it with the lifestyle value your home should give you now.
The best home remodels balance personal preferences, functionality, longevity, and broad appeal (when appropriate). Home remodels can keep ROI and resale value in mind while still creating a home that prioritizes your comfort and enjoyment. This can be a tricky balance to strike, but your design-build team will help you succeed. If your Lancaster home is ready for a remodel, we’re here to design and build the home you’ve been waiting for. Contact us today and let’s get started.