The concept of value engineering in renovation has never been more essential than it is today. At the start of 2009 we can still hear all sort of commotion about slow economy and troubles in the real estate market. All this should awaken renovators who are planning to increase the value of their homes, that a small miss-calculation or an over-renovation could easily destroy their profit or worse result in a complete loss.
Let me be clear, slow economy and slow real estate market does not mean that you can not remodel your home to increase its value. What it means is that you need to know what to renovate and how much to renovate in order to turn a good profit. At first sight this may seem simple; However, there is more involved than a simple question from your local renovator. To fully maximize your profit you need to understand value engineering in regard to home renovation.
Simply put value engineering in respect to home renovation is the process by which you analyze to determine what renovations will bring in the most profit for your home. Here we are going to quickly discuss the steps that must be taken to determine how to maximize your profit.
1) The first step in this process is to determine the market value of your home as well as market value of renovated homes similar to your home in your area. This is done to find out whether there is any room to profit. If the price for your un-renovated home is close to the price of a renovated similar home nearby, renovation could be a waste of time and money.
Remember, the key words are "similar homes" and "in your area". There is no point comparing your home that is built on …Continue Reading