Most people who are preparing to move out of their house or into a new one might be thinking a little bit about remodeling, but it can be a little expensive. However, the economy today has many homeowners reeling – do they remodel before they move or do they save their cash?
Well, no one says you have to rebuild your house before you move. In fact, you shouldn’t! The very basic repairs and upgrades are all you need if you want to sell the house and move out. If you are moving into a new house and plan to be there a long time (at least ten years), then you should consider remodeling.
Depending on where you live, the payback on your investment will vary. The highest payback rate is actually in the Pacific area – Oregon, Washington, California, Hawaii and Alaska. On average, any remodeling project in these states has a return of about 71%. This is despite the fact that the costs are higher in this region.
The second highest payback region happens to be the West South Central region of the country, which includes Oklahoma, Texas, Louisiana and Arkansas. The construction costs are low, resale values are pretty high, and the average return is almost 68%. Third in line is the South Atlantic area – the Carolinas, the Virginias, Florida, Georgia, Maryland, and Delaware – where you can get a return of about 67%.
If you want to sell your home and move in the New England, East South Central or Mountain regions of the country, the depressed home prices and high construction costs might not make the remodel worth your investment. Other regions of the country garner below the national return average of 57%.