Thank you Jennifer H for your question!
"Ok, here's a question: how to do you know if you're over-renovating your house? I have many more projects I'd like to do, but I'm at risk of coming near my purchase price! I also have no plans on moving in the near future"
If you spend any time at all reading about remodels on the internet, you'll quickly find this is one of the most frequently asked questions that people have when it comes to remodeling. I think the reason people find it so hard to find a satisfying answer, is because there is no one right answer that applies to everyone in every situation. I have to admit, it bothers me a little bit when I read articles that state as fact that anyone considering a remodel should limit their budget to no more than "x" percentage of the value of their home "in order to get the maximum return on their investment". The truth is, the National Average Cost of for a Major Kitchen remodel in the US for 2011 was $82,000, and for many homeowners the typical 20% percentage amount would severely restrict their options for a remodel, or possibly not allow a major remodel at all. What these articles don't make clear is that an "investment" based budget is really only appropriate when your
main, and possibly your only motivation, is to improve the value of your home. But, what if improving the asking price of your home is not your primary goal?
What if you're not planning to sell your home any time soon? What if you are motivated to simply improve how you and your family enjoy your home? What if you have the means and you want a little bit more of that "Want" side of the pie. Our homes are our most personal spaces, it's where we spend a huge amount of time, and it's where we make a statement to our friends, family and colleagues about who we are. How do you quantify that? I think we could all look around our homes and see things that we've purchased because we enjoy them, not necessarily for their investment value.
If someone truly is remodeling strictly to improve the value of their home for re-sale, then the absolute best thing they can do is not rely on any vague catch all formulas, but speak with a Real Estate professional who knows their area really well, and who can assess for them what improvements their home truly needs, and what return on investment their neighborhood can realistically accommodate.
I've written a little more on this topic on my website,
www.shyloprestondesigns.com under Tips & Info / Priorities.
