Your home is one of your most significant investments, and making improvements can have a profound impact on its resale value. According to the National Association of Realtors (NAR), a well-maintained home can increase its value by up to 25% in just one year.
However, not all renovations are created equal. A smart investor will consider factors such as the original construction cost, materials used, and the expected return on investment when deciding whether to renovate or hold onto their existing home.
The best time to invest in a renovation is often during a seller's market, when buyers are eager for quick sales and renovations can be done quickly without impacting the sale price.
A well-executed home renovation can recoup a significant portion of its costs at resale. According to a study by HomeAdvisor, a 20% increase in square footage can recoup up to $24,000 of home equity over the next five years.
Home renovations offer numerous benefits for homeowners and investors alike. By considering factors such as market demand, renovation costs, and expected returns, you can make informed decisions about how much and when to invest in your property. Whether you're looking to increase the resale value of your home or simply want to upgrade your living space, a smart renovation strategy can be a wise investment decision.
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