With home prices at an all-time high and limited in availability, many homeowners are asking themselves if remodeling is preferrable to moving when the country seems to be heading into a recession.
To begin with, it is important to remember is that even in a recession, your home is a long-term investment. However, there are other factors involved that should be weighed when making the decision to remodel or spin the wheel and try your luck in the thin Twin Cities housing market.
Do you like where you live?
This is the question Minnesota homeowners need to ask themselves before starting a remodeling versus selling. Do you enjoy your neighborhood, property and neighbors? If yes, remodeling might be the wiser choice, especially if you are already located in a high-demand neighborhood.
Like where you live? Great! However, you’re probably in the same boat many current homeowners find themselves in today. Working from home, or at least trying to. In many cases one or both homeowners are working at least part-time from home, which ultimately puts a strain on space, privacy and professionalism. If we are honest, Zoom is great at changing our backgrounds, but they fail miserably at squashing nerf battles that are strangely attracted to our kitchen workspace. As a result, our cultural shift has seen us turn to modifying our homes to accommodate our new work paradigm. Today it is common for homeowners to renovate garages or create whole new home additions to gain the workspace needed to function properly. While necessary, those renovations are not netting the greatest ROI (return on investment).
Renovating home exteriors nets the greatest ROI
If the decision is made to remain and remodel, then the next question is often “what renovation will net the greatest return?”
Interestingly, it might not be what you would expect. It is a common belief that kitchen remodeling nets the largest returns of any home remodel project. This couldn’t be farther from the truth. HomeAdvisor took note of it.
The Minneapolis region cost vs. value report identified stone veneer siding as capturing the top ROI spot in the area, with a 93% return on investment versus only 52% for a kitchen remodel. Furthermore, exterior doors and windows garnered a 70% and 68%, respectively, in ROI. These statistics clearly demonstrate the real value in remodeling home exteriors in Minnesota, regardless of economic climate.
Financing may still make sense
Thanks to the tight job market, lenders continue to make financing readily available to homeowners. We have found the lowest rates to be offered by online lenders that do not have the expenses that their rick and mortar counterparts incur. Many of them pass on those savings to borrowers in the form of low interest rates for home remodeling loans.
Thinking about making your remodel a reality? Review your renovation ideas with a project manager. Let your project become our passion!
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