As Tyler, Texas‘ trusted local insurance agency, Bosworth Insurance knows that rental insurance, medical insurance, car insurance, insurance premiums, and deductibles are major household finances many people are thinking about today.
If you’re a homeowner, chances are the real estate market is also on your mind.
If you’re a property owner with a home or rental property that needs renovating, you’re probably also thinking about your home’s resale value.
When you renovate, always keep an eye on increasing your property values. What renovations add cosmetic resale value?
What renovations add functional resale value?
Before you start construction, be sure to contact us here at Bosworth to discuss what additional coverage may be needed such as a builders risk policy, etc.
You’ll want to focus on a “return on investment,” or ROI, when planning and designing your home renovations.
Suppose you’re looking at doing important structural remodeling, such as upgrades and necessary replacements to old or outdated kitchens, bathrooms, doors, decks, or even windows. In that case, you can make a valuable return on your investment by putting money into renovating these areas of your home.
A general rule to follow – to recover the cost of the materials, etc., you will need to be “fixing” an issue.
If you don’t have the cash on hand to do the renovations but are planning to recoup it after the sale, it’s a good idea to investigate a home equity loan. This will allow you to make interest-only payments until you’ve sold your home and can reclaim your financial investment.
When you’re looking into home renovations, do your homework. It will save you money in the long run.
What are other home resale values in your neighborhood? You might have big plans to renovate and sell your home at a profit.
However, if you make improvements beyond the value of the houses around you, it might cost you money in the long term. Even though you’ve made your home more valuable, it still won’t be reflected in the sale cost because of its location.
It’s good to remember that the cost of a home generally mirrors that of the neighborhood homes around it.
It’s also important to research costs in your region and consider how that might impact your cost-to-return ratio.
Are you an investor hoping to earn back construction costs on rental properties?
Making specific decisions about which upgrades you choose can mean you gain money not just via the sale but also through rental rate increases for renovated properties.
Certain specific renovations generally always provide returns on investments you made in renovations to your home.
Aside from focusing home renovations on these practical issues to add resale value to your home, it’s important to look at what’s trending in home buying at this moment in history.
Since the pandemic, people have been spending more time than ever at home. As a result, homes are now our offices, gyms, and places to entertain.
How is that reflected in home buying trends? How could it be an advantage for the upgrades you choose for your home?
Here’s a short list of renovations you might consider for your home that has ROI value:
Before you begin your home renovations, make sure you speak with your local insurance provider and find out how these renovations might impact your homeowner’s insurance, rental insurance, etc. It’s also good to know what’s covered before beginning any home construction.
Contact your insurance agent today, and start planning!