There will always be differing opinions on whether or not renovating is a good option for
homeowners, especially in a rapidly changing economic climate like ours today. Many
different factors can make the decision difficult and the outcome murky.
This compilation of the pros and cons of renovating is a great resource to share with
those clients that wrestle with the question of whether to renovate or not.
Freshens up the space
The first and most obvious pro is giving the home a little refresher. “Sometimes it can
get dull to see the same walls or interior design and shifting a few things can introduce
more comfort.” says Nick Good Broker/Investor with The Good Home Team
Can add value
Some major renovations, like a home addition, can actually add significantly to the value
of the home. “According to The National Association of Realtors, every 1000 square feet
added, increases your home’s value by 30%” quotes Richard Harless of AZ Flat Fee.
“Reducing the cost in your utilities not only saves you money, but it’s also a tax
deduction.” says Harless. HVAC systems, windows, lights and insulation can help
reduce the cost of energy and some types, like solar panels, include tax benefits.
Potential for recovered costs
That possible recouping of cost is largely based on the types of renovations done. If
renovations are in-trend and in-demand at the time of the sale, costs are more likely to
“If you are a prospective seller and want to make a profit off of your current property,
renovations may just pay off for you since the housing market is hotter than ever and
buyers are willing to pay a heavy sum for top rated property,” Eyal Pasternak, founder of
Liberty House Buying Group.
By now, we’re all acutely aware of the labor shortage and how inflation is making nearly
everything more expensive. This applies to home renovation as well. Costs of labor and
the raw materials are up right now.
“Renovating isn’t just expensive, it’s time consuming too. Changes that would take a
month normally can go up to two or even more months thanks to a lack of certified
workers,” says Pasternak.
“Too many people go overboard with personal customization and experiments that leave
a mess… and it later weighs heavy while selling the house,” says Good.
While the current economic climate is battered with inflation, labor shortages and supply
chain issues, many experts believe we are entering a recession which would likely
change most of what makes renovation wise or unwise.
Continue to stay informed about how economic changes impact new construction, labor
force, raw goods and renovation costs in your area. In this way, you can be educated on
how to advise your clients with accurate information–and always remember; each and
every client’s wants and needs are unique! The best way to recommend and advise is
to ask a lot of questions and truly listen!