Home remodeling is an expensive ordeal and requires a substantial investment. Controlling construction cost requires carefully selecting house remodeling ideas that will add value to your property while enriching the owner’s lifestyle.
In addition, when planning a major home remodel project, it also should be your goal to wrap in house maintenance projects of products that are at the end of their service life.
An example of this is replacing the composite roof shingles because there near 30 years of age and scheduling the replacement of siding and exterior painting within the same project schedule.
By including multiple projects together, the owner can save some money, reduce consequential damage to other related parts of the house and get a completely new updated look at the end.
This article is focused on combining house remodeling ideas together when planning a home remodel.
One of the greatest underappreciated features of a major Houston remodeling project is that it should be synchronized with replacement of obsolete house products like new roof shingles, windows and appliances.
The results of combining the required obsolete product replacements with a major home remodel project can save you a substantial amount of money and future inconvenience.
Understanding the financial impact of combing projects is important in getting a complete appreciation for the direct and indirect total cost of the project. Once this total cost is captured it should be added back to the existing mortgage balance to determine the owner’s equity in the property.
The owner can compare the equity balance to the comparable house sales prices on the market. The result of this comparison can indicate how favorable the house remodel improvements will result in the future investment return.
We will discuss the different kinds of financial benefits and the way they are measured that can be obtained from house remodeling ideas that are combined and contribute to a greater future value of the property.
Learn how combining home replacement products with house remodeling ideas can boost your home financial results
Economies of Scale
The principles of economies of scale are an economic theory that suggest that the cost of producing one unit is less when many units are produced at the same time.
So, in the case of combining multiple home improvement projects, the owner experiences more competitive cost advantages then they would experience doing these projects independently.
This condition that benefits the owner are the direct results of the general contractors buying power, the cost of capital to finance the combined projects and project managerial economies.
Production builders provide an excellent example of how purchasing power can afford the builder better pricing on buying in bulk.
Also, by including product replacements into the house remodel project, service cost associated with product replacements such as hourly rates, trip charges and minimum charges dissipate.
The economies of scale can contribute to the house remodeling ideas return on investment.
Energy Cost Savings
Major Houston remodeling projects by their nature commonly involves the removal of sheetrock, windows, old appliances and equipment’s.
Home remodeling ideas provides opportunities to reduce the owner’s energy conception in the future by introducing more energy efficient products into the rebuilding of your house.
There are many intelligent energy efficient improvements that can be introduced into a house remodel project. The thing to determine is the length of time that it will take to return your investment.
This can usually be determined by calculating the total savings and dividing it by the cost of the product. This will yield the period of time required to recapture the investment.
Examples of these types of energy efficient house remodeling ideas are;
- Windows & Doors
- Air Infiltration Seals
- Insulation – Foam & Blanket Batts
- Kitchen & Laundry Appliances
- LED Lighting and the Use of Dimmers & Low Voltage
- Multi Zone – High SEER Air Conditioning Systems
- Increased Attic Ventilation During New Roofing Membranes
- Solar System
Homes Resale Value
We have all heard that your house will increase in value if we hire a remodeling contractor to make improvements.
This is not always the case, but during a period of rising house values it makes it easier to recapture your home remodeling investments sooner. It also depends on the types of remodeling ideas you undertake.
Buyers react differently to the various types of home improvements commissioned relative to the age of the house.
From a prospective buyer’s point of view, when older homes are not updated or have older house products that are near their service life expectancy, they commonly become subject to buyers discounting their market values during the sales process.
They understand through the requirements of mortgage financing house compliance inspections, that there is an anticipated need for additional future investments after the purchase of the home.
This prompts the buyer to request the seller of the house to discount the asking price for compensation for the needed improvements.
Tax Credits & Tax Savings
Although tax deductible savings and tax credits are seldom the driving motivation behind why an owner should remodel their house, they can be an attractive benefit to consider when planning a project over buying a new home.
The tax laws change every tax year but we will list some of the common home improvements that are recognized as tax credit worthy; energy efficient windows and doors, wall & roof insulation and high efficient air conditioners.
There are also certain types of heat reducing roof membrane components that are also eligible for varies tax credits.
In addition, other home remodeling products that justify tax savings are furnaces, natural gas water heaters and certain types of back up energy systems like solar systems, geo thermo and generators.
It is important that the products you select are energy star certified to comply with the tax code.
It is also note worthy that your home be evaluated for additional low cost energy savings products like deeper depth of attic insulation, exterior caulking and ceiling fans. All of which will pay for themselves in a short period of time.
Insurance Claims
Insurance disaster claims supplies homeowners with another type of opportunity to save money on house remodeling projects.
This is not to say that you should wish for your home to experience a disaster, but rather if you are unfortunate enough to suffer from an insured home disaster, an opportunity exist for subsidizing a much more extensive home remodeling project at a substantially less total direct cost.
Another advantage of making the best of a bad situation is that you will likely be displaced from your home with a major house insurance claim disaster.
Using this displacement time to improve a larger scope of your home lessens the likelihood of being inconvenienced in the foreseeable future by a major Houston remodeling project.
The major advantage is that your insurance claim benefit actual subsidizes your remodeling project. This is a situation that only occurs as a result of an insurance claim event.
So, if you were actually considering a major home project, it is well worth evaluating the impact that one of these cost savings mechanisms may have on your planning and total home renovation cost.
Conclusion
The effect of combining major house remodeling ideas will have a favorable result on the financial outcome on the return of investment.
Depending upon the home remodel projects the benefits will differ and may not enjoy all of the indirect total cost savings, but if properly managed will result in a higher equity base value of your property.
With the guidance of a professional home remodeler, a well detailed construction plan and the right remodeling ideas, an owner will substantially be better off financially on the ultimate value of their homestead.
