If you are living in an area where the neighbors have made improvements to their homes, such as making an expansion or improving their garden area, it may be a good idea to improve your home as well.

Century 21 home for sale

Remodeling can add much value to your present home. Photo by brewbooks' photostream, flickr

So let’s take an example of some people I know who invested their money in remodeling. Alex and Kate were able to buy an old house from the 50’s era from a broker, during that time, the house was $60,000 and they were able to provide spot cash for it and were given an 8% discount. Technically, then, the house was sold to them for about $55,200. The neighborhood where they bought the house has a Mediterranean theme, and since it was an old house already they had to make some improvements. Their finances improved yearly, and they started to remodel the house and update some of the furniture that needed to be replaced. Eventually, they totally changed the facade of the house and changed all the details to suit the theme of their neighbors. They changed the plywood flooring and walls into marble, graphite, and cinder block.

They also changed the color of the kitchen, play room, bedrooms, garage, and the outside of the house. They even added two more rooms as they added another member to their family. With the changes made, the old house was now well adapted to their environment, where most houses have 4-6 rooms, including a master bedroom.  In 4 years, they made staggered improvements to their home, with an investment of $100,000, and now the house is valued at $400,000. That means with the cost of buying the house plus the renovations made, they have gained more than 70% of what they have paid out. Actually, if they plan to sell it now, they would not find it hard to look for buyers as the house can sell itself considering how attractive and beautiful the house has become.

More often, remodeling a house is less expensive than buying a new one. You just have to be creative, watch your budgeting and consider the great returns that you can get after all the effort and hard work (plus the patience) of living through the remodel.

We have free, online cost calculators to help you estimate the cost of your remodel.  Click here to use them.  We also offer a number of workbooks to help you plan your remodel.