Are you already starting to think about your goals for 2016? If home renovations are in your plans for next year, make sure you know how those renovations will affect the value of your home
Major Renovations Can Increase Your Tax Bill
Every area is a bit different, but major renovations can affect your home’s value and increase your tax bill. If you’re renovating with the intention to sell, this might not bother you, but for those who simply want a more comfortable or luxurious home, be aware. Added bathrooms, refinished space, bigger rooms – if it increases the living space, allows more people to live in a home, or does anything to increase a home’s worth, be prepared for your taxes to go up.
When in doubt, talk to the Property Appraiser’s office to determine what, if any, impact your improvements will have. It’s better to be warned about the increase than surprised when the tax bill comes due later.
Some Renovations Can Decrease Your Home’s Value
Some changes you make to your home help your current lifestyle. If you plan to live in your house for the next 30 years, that might not be so bad. Most people don’t stay in one home that long and that great idea you had for a remodel a few years ago could decrease your home’s value or make it harder to sell.
- Eliminating bedrooms can lower the price you’ll receive for your home. Many buyers are willing to pay more for more bedrooms.
- Turning your garage into living space can turn off buyers. Over 70 percent of buyers say a garage is important to them, according to a recent survey.
- Getting rid of closets is always a bad idea. You might have wanted the extra space, but potential buyers are going to want closet space.
As you get ready to end 2015 on a high note and make plans for a spectacular 2016, don’t plan your home renovations without doing your research. Reach out to your Realtor or contact the property appraiser’s office to find out what your planned renovations might do to the value of your home before you hire your contractor.
Leave a Reply