Home Renovations: 3 Tips for Avoiding Over-improvement
Posted by 
Al Filippone Associates on Monday, September 28, 2009
Thinking of renovating that old bathroom, adding another bedroom, or sprucing up your ‘tired’ kitchen? An important question when planning a renovation project on your home is whether doing so will result in an over-improvement. A common misconception is that any improvement of a home will result in an increase in the home’s value. Unfortunately this isn’t necessarily the case. Depending on the neighborhood and the current market conditions, adding additional square footage, a new bath or upgrading the kitchen may not result in increased value. I have come up with a few key points to consider before you plan your next renovation to help you avoid the common pitfalls of over-improving.
1. Find out what the largest square footage is in your neighborhood. If you are planning to increase your home’s size be sure not to exceed the maximum in your neighborhood or you will risk not seeing a proportional return on your investment.
2. Try to remain consistent with the interior finishes that you see in your neighborhood. For example, if you plan to install high-end finishes such as granite countertops – check whether similar finishes are common in your neighborhood.
3. Never lose sight of improvement costs versus the potential gains…even if you are planning on remaining in the home for a long period. In today’s unstable job market you never know what tomorrow will bring. Budgeting conservatively for your renovation project will help ensure you see a return…even if you end up moving much sooner than you originally planned.
