People sometimes confuse house remodeling and house renovation with each other. This is understandable, as both are ways of home improvements, include rebuilding some parts of an existing house, and require time and money. However, homeowners must be aware of the differences between remodeling and renovation and how they affect the real estate value separately.
Remodeling vs. Renovation
To put it simply, renovation refers to the physical upkeep of a house’s construction to prevent it from deterioration. It focuses on the restoration of the house to a good repair, which includes replacing an old damaged door with a new and sturdier one, or repairing holes in the walls and ceilings.
However, remodeling refers to the change in structure of a part or the whole of the house. It sometimes includes demolishing a part of the house so the new floorplan would be easier to construct, especially if the existing wirings and pipework are going to be affected by the new layout.
How does renovation affect your real estate value?
You might think that if your renovation costs $10,000, then your real estate value just goes up by $10,000. It does not work as easy as that, but do not worry—your real estate value, as well as your Return on Investment (ROI), can still increase.
Homeowners can expect an increase in real estate value depending on the designated cost percentage (a.k.a. recovery rates) on the area of the house they have renovated. However, recovery rates depend on the laws of the state. For example, in some parts of the USA, a roof replacement would have 50% recovery rate, which means that if you spend $10,000 renovating your roof, you can expect a $5,000 increase on your ROI. If you put your house on the market, however, the reselling price of your home could still be affected by other factors despite the renovations you made.
How does remodeling affect your real estate value?
Real estate market history and records show how remodeling affects the ROI and the house’s reselling price greater than renovation does. This is because remodeling costs more and has more visible and functional results than renovations. For example, a remodeled backyard could go from a plain garden to a backyard complete with landscaping and a pool with an outdoor hot tub. In this case, a pool is more than just a decoration so the property could look more beautiful—it can be used for swimming exercises, pool parties, and other recreational activities.
If you just renovated or remodeled your home and you are interested in finding out if there are any changes in your real estate value, you can go to http://propertyvalue.vegas/.
For assistance in putting your newly renovated or remodeled Las Vegas homes for sale in the market, you may get help from a trusted real estate team.