A home renovation is often thought of as something that brightens up our living space, expands our living space, or improves our comfort. Consider an upgrade, a new bathroom, or a fresh coat of paint. These renovations come under the second concept. They are bringing new life to our home and have a “wow” factor that we enjoy showing off to our friends and family. These renovations often help to raise the value of a home, and people will discuss the return on investment associated with them, i.e. the cost of the renovation versus the increase in price if the home were to be sold. Have a look at coatings for more info on this.
However, there are occasions when a much more significant home renovation is needed, which sadly falls under description number one. It’s the dull renovation, the maintenance renovation, the “restore to a former better condition” renovation – and the financial cost to “wow” factor ratio stinks. This form of renovation involves items like a new roof, foundation repairs, pointing, insulation, and wiring – typically unseen renovations – and is usually the top priority of any home owner, regardless of their situation.
Take the example of a satisfied homeowner who wants to remain in their home to raise a family because they enjoy the neighborhood’s community spirit, it’s close to work, and there are plenty of amenities nearby. What is more critical in the long run? Is it more important to stop the basement from leaking or to get a new kitchen? Of course, the response should be self-evident: renovating (restoring to a former better state) the basement is not only a required precaution against major damage to the building, but it is also a necessity for peace of mind.
What happens if a homeowner is attempting to sell their home? A new kitchen is well-known for providing the highest return on investment and greatly increasing the value of a home. It might be tempting to renovate this small profit generator first in order to raise more capital and make the house more appealing, but there is a catch: if there are any unresolved structural or major maintenance problems, the prospective buyer, if they have any sense, will discover them during a structural survey. Depending on what the issue is, there could be one of several outcomes: a request for a reduction in price, a request for the work to be completed and re-inspected at the homeowner’s expense, or, as is quite often the case, a permanent retraction of the offer. It’s a bitter pill to swallow for the seller, since a realtor’s price appraisal of their home usually does not include the cost of this extra work, and yet there seems to be little gain of getting the work performed in terms of increasing the house value. Of course there is; the problem is that the rating was set too high in the first place.