One of the advantages of buying and remodeling a home is that you have complete control over the appearance and functionality of your home. This means you can completely customize the house to your liking.
Remodel to your taste
Most renovations take place in the bathroom and kitchen. Those areas quickly become dated. With a new floor and painting, your house will look like new again! If you want added value from your renovation, consider adding dormers and building extensions to the house. This way, you increase the living space. Nice while living, and it also increases the value of your home.
Costs of renovation
A disadvantage of remodeling is that the costs are high. When buying a dated house, the costs of renovations can add up quickly. This is because you will spend money updating the home with all of today's conveniences in addition to styling and decorating. By planning and budgeting well, you can understand how much the remodel will cost.
The cost of remodeling can vary widely. An average renovation can cost about €750 per square meter, while luxury remodels can cost up to €1,750 per square meter.
The remodeling quote
If you want to finance part of the renovation with a mortgage, you should make a first rough estimate of the renovation costs. You do not have to have fully developed plans for this, but it indicates value-adding aspects of the renovation. As shown here, you then use this to draw up a renovation estimate. Finally, you mail this renovation estimate to the appraiser when he appraises the house for house value. The appraiser then values the home as it is now, in its current condition, and estimates the value after the renovation as specified in the quote.
Please note that you can never borrow more than the appraised value (in current condition) and usually only borrow around 60% more than the costs specified in the renovation specification. So above all, don't be too conservative in estimating costs!
Increase in value
Not every element of remodeling will pay for itself immediately with an increase in the value of the home, whether in terms of appraisal value or actual resale value. For example, luxurious faucets or shower heads enrich your living experience more than the resale value. This is because there is a limit to what you will get back in terms of appreciation, and the local market determines that. If that local market is very average in home design, then your fully decked-out home will become the most expensive in the neighborhood. That may make the home popular but does not translate proportionately directly into a resale value well above the current neighborhood maximum.
The invisible renovations
Renovations that cost a lot of time and money but that you see little of, only bring in more at the time of sale if they significantly reduce the monthly cost of the home. After all, the energy efficiency of the home is becoming increasingly important. But, again, there is a cap determined by the neighborhood and by the energy performance of the home. Triple glazing adds excellent comfort to the home but does not translate as an inordinately higher home value than if you have HR++ double glazing.
A remodeling estimate is required if you plan to remodel and want to have the costs paid for within the mortgage loan Continue reading →
The key transfer takes place on the transfer date. This is the date buyers, and sellers include in the preliminary purchase agreement when the property is transferred from sellers to buyers. Continue reading →
How much should I offer?
When buying a house, it's not just about finding the perfect home, but also about navigating the complex purchasing process. Luckily, there's Walter, your reliable digital purchasing agent who assists you with every step you need to take. Continue reading →