Here are my top four worst reasons to renovate or upgrade your home.
It’s always exciting to renovate your home, but is it a good idea? I’ve seen plenty of people jump into projects they regret later, so, I want to go over the four worst reasons people renovate their homes:
1. You want to keep up with the Joneses. If you chose to renovate your home, it should be because you will enjoy the renovation, not to compete with your neighbors. Renovating to show off on social media is similarly misguided. Sure, it might be nice to rack up likes, but eventually, they’ll dry up, and you’ll feel like you need to do something else to continue impressing everyone.
2. You think you’ll get your money back when you sell. There is some truth to this since home renovations might improve the value of your home. However, you’ll almost never get a 100% return on your investment, so think carefully before you decide to finance your renovations. If you blindly take out a second mortgage or home equity loan to fund your upgrades, you could drain so much equity that you accidentally make it harder to sell your home.
3. You have a short-term need. I get it. Sometimes it’s hard to imagine that your current moment won’t last forever. However, that’s no reason to make a permanent change to your home to solve a temporary problem. For example, if you have a toddler, you could be tempted to add a playroom just to have somewhere to put all their toys. Next thing you know, they’re starting middle school, and you spent a ton of money on a room that doesn’t get used. Instead, I recommend temporarily repurposing what you already have.
“If you chose to renovate your home, it should be because you will enjoy the renovation.”
4. You can’t declutter. It’s hard letting go, but if you’re running out of room for all your stuff, adding more space is probably not the solution. Besides the cost of the renovation, you’re adding property taxes and a whole lot of stress to your life. Instead, focus on letting go of what isn’t essential.
Before you call a contractor, I hope you consider these reasons and make sure you’re renovating for the right reason. If you have any questions about today’s topic or anything else related to real estate, please reach out to me. I am always willing to help.