If you’re planning on a remodel of your home this winter or spring, you might want to think hard about what you plan on doing if you’re thinking on selling your home any time soon.  When I go on listing appointments, sellers make sure to impress upon me the improvements they have made to their homes.  Sellers often feel that because their home has been remodeled, it should be worth more than one that is not.  This is not always true.  Every remodel job has two components:

The first is structural like adding square footage, installing a new furnace or roof, adding a bath.  These projects will add to the value of your home and will continue to contribute to the value for the longer term.

The second component is decorative or style-related such as choice of colors, cabinets, countertops, flooring, etc.  A remodel done in the style of the moment will sometimes return more than its cost, or at least command a higher price, but only if you sell immediately.  After a few years, as colors and materials lose their cutting edge, their return diminishes. The improvements you made, although still functional, may be completely out of style and will net you a small fraction of the cost if anything.  When the remodel becomes out-dated, the not-so-recent improvements may actually subtract from the value.

Sometimes a house in its original condition is worth more than one that has been remodeled.

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