Useful Guide - How To Propel Understanding of Home Improvement Investments
Saturday, February 28th, 2009If you have decided to remodel your bathroom then you should consider the costs of the bathroom remodeling versus the return on the actual investment. It will be very interesting for you to know that the average bathroom remodel throughout the country cost around $16,000 due to one of the popular remodeling journals.
In the case that you were to sell your house within a few years, you could recoup around $12,000 of your original investment. It means that this would translate into a $4000 loss to your pocketbook eventually.
Mentioned above will help you a lot as using these numbers for your bathroom remodel investment, you would recoup around 75% of your original investment. It should be also pointed out that if you know anything about investing money, this will not be a good rate of return and you won’t have any to invest if you keep investing your money in this way.
It is really important to remember that if you’re going to be selling the home within a few years. In the case that your bathroom isn’t in good shape and you’re not going to sell soon, you could remodel the bathroom and enjoy it for quite a few years. Doing in this way you wouldn’t be looking at this as investment but as maintenance costs.
If the reason you need to remodel the bathroom is it’s getting a little run down and will create you some problems when selling a home, so it is highly recommended to make minor remodeling. As concerning the situation that the toilet, fixtures and bathtub is in good condition, it is recommended to change the sink, cabinet, bathtub surround, flooring and some new paint would also renew your bathroom.
There is also a nee to mention that if you’re remodeling cost is now at $8,000, you would recoup at least $6,000 and would only lose $2000 on your original investment. As a matter of fact, now this still doesn’t make any sense, if you’re still losing money, why would you even want to remodel the bathroom. The natural question appears: Why not sell the home as it is without losing any money? Of course, this is not an easy decision to make and remember that these are average costs.
You should know that it is possible to recoup less or more than 75% of your bathroom investment costs. A lot of real estate professionals will suggest you to remodel the bathroom because of two reasons:
- the house will sell for a few more dollars and it will increase their sales commission;
- the home could sell faster.
So, if you are not in a hurry to sell the home and have the time, first of all, you should try to sell the home as is and after that to spruce it up, if you can’t sell it in a three months period.
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