Homeowners embark on home remodeling projects for a variety of reasons:
- To increase your home’s value
- To improve your comfort and quality of life
- To save money on utilities
- To get ready to sell your home
If these reasons above aren’t enough to get you going on your desired home remodeling projects, here are 10 reasons that may inspire you to start improving your biggest asset.
1) Tax Credits for Energy-efficient Remodeling
Taxpayers who upgrade their homes to improve energy efficiency (energy-efficient windows, doors & insulated siding) or renewable energy may be eligible for tax credits. The U.S. government offers two credits: 1) the Residential Energy Efficiency Property Credit, and 2) the Nonbusiness Energy Property Credit. These credits can be claimed for 2016, and tax credits for solar energy investments are good through 2019. Check with your CPA and make sure that you take advantage of tax credits available through 2016, and work with your CPA to understand what your options are for tax years going forward.
2) Energy Cost Savings
One of the best ways to reduce heating and cooling costs is to replace old windows and doors that are leaking like a sieve. In addition to tax credits for these improvements, a home that’s better sealed lowers heating and cooling costs, too. For example, when you re-side a home with fiber cement, engineered woodk, stucco, or vinyl siding to your home, you also can add insulation under it, and potentially reduce your heating/cooling costs by up to 20-40 percent.
3) You’re Staying in Your Current Home Longer Than Planned
For a variety of reasons, homeowners who might otherwise have traded up and bought a new home are opting to stay in their current home and opt for home remodeling. In these scenarios, home owners often opt to fix or upgrade something they’ve never liked because they’re going to have to endure it longer than planned. Plus, if you do end up selling your home at some point, it will better compete and close in a shorter “on-the-market” time period.
4) Competition for Your Home Remodeling Dollars
In metro Denver, with a white-hot real estate market (at least right now), home remodelers are busy. But they are still in business, and they’re still looking for great clients and great projects. If you bring a clear vision, an appreciation of craftsmanship, and the right budget to the table, you can still get the attention of reputable home remodeling companies.
5) Manufacturer Product Discounts & Promotions
Despite the white-hot real estate market, you will still find plenty of great home remodeling products discounts and promotions. Watch for promotions on specific manufacturers, special features, spiffs, extras, upgrades, and volume discounts for siding, window, and door replacement projects.
6) Extend Your Current Home’s Livable Space
When home owners need extra space but aren’t in a position to buy a new home, a thoughtful home remodeling project can increase the amount of livable space. Building an addition or investing in custom decks projects can markedly increase the amount of livable space in and around your home.
7) Increase The Resale Value Of Your Home & Sell It Quicker
According to a Remodeling Magazine research study, some of the top investments that will enhance the re-sale value of a home are new siding and replacement windows. A related National Association of Realtors study indicated that a home will sell more quickly with renovations, and that some of the major renovation projects that return the most in resale value include replacing old siding with fiber cement siding. So, a savvy, cost-efficient home remodeling project can help maintain the current value of your home, increase its value, and help you sell the home more quickly, and at a higher price.
8) Refinancing Can Help Pay For Home Remodeling
Mortgage rates have been at historic lows in recent years. And even as interest rates finally start to rise, it’s expected that they will still remain below 5%. If you choose to refinance before interest rates increase, you may be able to parlay the savings and/or equity into the home remodeling project that further increases the value of your home.
9) Increase the Value Of Your Biggest Asset
Economic factors continue to push home prices upward in metro Denver and Colorado. So investing in home remodeling contributes to increasing the value of your home.
10) Love Where You Live
It may seem quite obvious. But one major reason for starting a home remodeling project is to simply love where you live. A remodeling project that transforms your outdated exterior into a home with high curb appeal, a kitchen into a culinary oasis, or a backyard from a mud bowl into an entertainment area, can be priceless in the quality of life it offers.
When you look at all the reasons to justify a home remodeling project, it’s an investment that makes sense for so many reasons.