Cost of Repair Vs. Resale Value

When looking at home renovations and repair, there are a few typical reasons people hire a contractor. The first being, something’s broken and it needs immediate fixing. This is understandable because some broken appliances can make life nearly impossible to live without.

Another is that you are tired of your home and you want it refurbished to give it some life. This too is completely understandable. Sometimes we get sick of things and if we have the means to do so, why not change things up?

The third is to add value to the home. Here’s where some math comes into play. In order to add resale value to your home, you must do some comparisons. First, what repairs add the most value to a home? Not all repairs are made equal. Some have more weight than others when it comes to the resale of a home.

For instance, new siding might add more value to the sale of a home compared to, say, a new kitchen. This is especially the case if some of your siding is covered by your home owner’s insurance. Siding that is damaged by weather like a storm or wind can be fully or partially covered by your home owner’s insurance. That means, by spending little to none of your money, you are adding to the value of your home.

Other types of home repairs you must consider the percentage of money recouped by the resale value added compared to the cost of labor. Window and roof repairs are high on the list as well, as they can recoup 80 percent of the value spent.

Now, like I stated earlier, not everyone is looking at the long term, even in these situations it is smart to consider the recoup costs, in case of unexpected moves because of employment or retirement. How do you find out the resale value added to a project? The answer is research.

Luckily, the Internet is filled with resources that allow you to learn what value a certain project will add to your home. You can then compare these statistics with the price of cost and labor. If you are skilled, you can possibly cut costs by doing it yourself, however, hiring out a master renovator will make the home more desirable upon selling. Unskilled work yields less profit.

For those that are considering doing some home repairs, Bauer Construction can help with all of your repair and renovation needs. Contact us today to learn about the services we offer and to get a quote on your specific project. We look forward to hearing from you.

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