It can be tough to decide the right time to make improvements to your home. But the benefits are extensive: avoiding unnecessary disintegration and greater expenses later on; enjoying a comfortable, attractive living space with your family; and maintaining the curb appeal and structural integrity that’s vital when you decide to sell. Understanding the 5 D’s — distance, deficiency, distinctiveness, demand and degree — can help you determine when to remodel your family’s biggest investment.
Distance — a.k.a. “Curb Appeal”
View your house from the street to get the most accurate first and last impression people have of your home. Keeping your exterior well-maintained can be a good reflection of what’s on the inside. Sometimes you can judge a book by its cover, especially when it comes to the condition of a home.
You also want people to remember your home as they drive away. Up-to-date roofing, siding and windows create a house they’ll be tempted to look at again. First and last impressions are everything when it comes to curb appeal.
Deficiency — Room for Improvement
It’s important to be aware of your home’s shortcomings when you’re deciding whether to remodel since obvious deficiencies can lower your home’s value. Compare your home to similar ones in your area to find out where you can make improvements. Make sure you do so with an objective eye.
Don’t let good memories cloud your vision when it comes to areas that need fixed. You’ll be grateful when it comes time to sell, and you’ll benefit in the meantime with a home that’s more livable.
Distinctiveness — The Coolness Factor
What are the main features you describe when asked about your home? Every home should have characteristics that make it memorable when viewed alongside similar homes, especially when it comes time to sell in a competitive housing market. Houses generally appraise for more value if they have two or three special features that make them stand out.
Being “that one home with the interesting textured siding” can go a long way toward getting your home remembered whenever you decide it’s time to move. Keep in mind that people tend to buy based on emotion — “Wow, it’s cool!” — then back it up with rational decisions like “This is practical because…”
Demand — Will It Have Appeal?
Even with the need to stand out, there’s a cost to being too unique. Even if you’re in love with the idea of a room addition built around an existing tree, the demand for your home could be significantly reduced in the long run. If you plan to sell your home in the future, avoid spending a lot of money on a lot of features that are out of character for your neighborhood.
There’s a balance to be had between a few cool features and future buyers wondering what you were thinking. Your best bet is to keep your investment in mind when taking on home improvements that are less practical. Model homes can give you a good gauge of features that are unique yet marketable. Most have market research and customer surveys to back up their “Wow, it’s cool!” improvements.
Degree — Don’t Go Overboard
Consider the benefits of the project. If you won’t see a return on your investment, don’t undertake it. Also be careful not to overdo it. Over-improving can cost you time and money, and if the area in question is already well-maintained and attractive, you won’t come out ahead.
But be careful not to go overboard in your restraint either. Holding off too long on improvements to areas like siding and windows can result in larger, more expensive projects down the road. Exterior improvements, including new roofing, updated siding, renewed paint, the latest windows, custom doors and well-maintained landscaping, are the best way to give your home a facelift that will see a return on your investment.
The Bottom Line
So how do you decide whether to improve or not improve and to what extent? Basically, you should keep a 10-year rule in mind. If you are planning to stay in the house 10 years or more, most of your decision should be based on how much the enhancements will improve your quality of life. But, if you plan to move in fewer than 10 years, or if the project is quite large, pay more attention to the impact on probable resale value.
Unfortunately, horror stories associated with home improvement are common when it comes to untrustworthy contractors. That’s why it’s important to know what to look for to find a company that can offer you the kind of service you deserve.
Get It in Writing — Ask for written proof of contractor’s license, worker’s compensation insurance and general liability coverage of at least $1 million. Also ask if the company has been involved in any construction-related litigation in the past five years.
Ask for a Guarantee — Quality contractors will guarantee their work. Ask how long the guarantee lasts, what is covered and how quickly they’ll fix anything that goes wrong.
Do Your Research — Find out how long they’ve been in business under the same name. Also obtain references with contact information and do some calling. Be thorough in your questions and keep calling until you’re satisfied.
Set Ground Rules — You have a right to ask that only experienced workers are on your crew. You also have the right to insist that all workers are supervised and that quality control inspectors review the project upon completion.
Review Certifications — Ask what professional designations the contractor has earned. Memberships in trade associations and certifications are signs of professionalism. Participation demonstrates a commitment to clients and to the industry.