4 Remodeling Myths You Should Avoid When Building a Home Equity

4 Remodeling Myths You Should Avoid When Building a Home Equity
The Siliconreview
09 June, 2020

In order to get the most out of your real property, each ounce you put into it will count. There’s no doubt that home improvement is one of the best ways to add value to your property. Many shows inspire homeowners to attack their homes with creative and wild abandon. If you are planning a remodeling of your home in order to increase its value or to take a home equity loan for bad credit, there are a few factors you should consider to make sure your redo will surely maximize the equity that you build in your home.

The truth is that there will probably always be something that you can change in your house. How can you know which moves would be the best? There are many potential projects that you can choose among, and a never-ending number of experts that offer different guidance. To begin, I’m going to list 4 of the remodeling myths that you should avoid when building your home equity.

So many factors can be stressful and sometimes lead to poor decision making. By learning about these remodeling myths and mistakes before you even get a home equity loan and take on a huge home improvement project, you can improve the value of your home, make smart decisions to protect the equity that you’ve worked hard to build.

‘’You will get all of your home-improvement money back when you sell.’’

You’ll probably get at least a partial return of your home-improvement money, and the percentage mostly depends on what kind of projects you do and the quality of the work. Home improvements that generally have a high ROI (Return On Investment) include a bathroom remodel, kitchen remodels, and a roof replacement.

‘’Use the Best Possible Materials That You Can Afford’’

It’s generally ‘smarter’ to use certain quality materials that would be in line with the rest of your property and your neighborhood. It might sound good to you to splurge on high-end stuff, but that can lower your remodeling return on investment. It would be best to consult with a real estate expert that knows your area very well. You can also check ads for nearby homes that are for sale to discover the type of materials that are typical for your neighborhood. In case you get a home equity loan for financing your project, then you’ll have a set payment every month for a period that is usually between ten and thirty years. While crunching the numbers to determine your return on investment, you need to factor the total cost of the loan into the calculation.

‘’Remodeling Work does Not require Permits.’’

Remodeling can represent more than just a surface change. Neglecting the proper permits may cost you. A worst-case scenario would be that you’ll be forced to redo some of the work. You’re wondering how? A county or city inspector may stop by to check your permit. In case you don’t have one, then they can order a part or all of the work to be demolished and redone. Besides, you can get hit with fines and fees in addition to the cost of the redo. What remodeling requires a permit then? Perhaps you’ll need to have a license for home improvements that are involving moving walls, electrical work, plumbing, and creating new windows and doors. The good news is that a qualified contractor usually handles all permits. However, some of the works you may need to do that don’t include an all-out remodeling, like septic tank cleaning, don’t require a permit.

‘’You can Save Your Money by Using a Handyman to Remodel.’’

It can generally pay off, in the long run, to hire a qualified contractor that is bonded, licensed, and insured for their trade. What can backfire is to go with somebody that is unlicensed and who offers a low bid, although it may sound good at first. What I suggest is to hire a qualified contractor. You can check with the local government or state to make sure that they’re licensed and to verify that they carry personal liability, property damage insurance, and worker’s compensation.