Home improvement projects are giving homeowners a greater return on their investment when it comes time to sell. If you haven't already decided to renovate, here are 3 reasons why you should consider it.
1. The housing market is on the rebound. No one wants to put money into a house and never recoup the cost. Now that the market seems to have stabilized and home values are again on the rise, it may be the perfect time. By renovating, you can make improvements that could further boost your equity and potential resale value.
2. Costs are holding steady while value is rising. The housing market is going up, the cost of remodeling projects seems to be holding steady. The annual cost vs. value report issued by Remodeling Magazine found the cost of home remodeling projects peaked in 2009 before coming down in the year that followed. 2014 saw a very slight increase in remodeling costs from last year and may indicate prices are on the rise. Best to squeeze in your project now in case this is the start of an upward trend.
3. Interest rates are still low. Rates may not be at historic lows anymore, but they are still very good. PrimeLending is offering awesome rates on renovation loans. With rising equity and home prices going up, take advantage today of the lower rates while you can. Either on a purchase or refinance your current home mortgage, the options are endless.
What projects improve the home’s value?
While some remodeling projects can significantly increase the value of a home, don’t expect that on all of them. For example, adding a swimming pool in Minnesota will not give you the same return as if the property was sitting in Texas. However, an outdoor kitchen/patio may be a great improvement.
2013-2014 Cost vs. Value Report found the following improvements provide the best return on investment. The percentages reflect how much of the project cost you recoup in terms of the increase to your home’s value. Keep in mind, these renovations were completed by a licensed contractor, not the homeowner.
· Steel entry door replacement: 96.6%
· Wooden deck addition: 87.4%
· Attic bedroom: 84.3%
· Garage door replacement: 83.7%
· Minor kitchen remodel: 82.7%
· Basement Remodel: 77.6%
Some experts noted that 2013 saw a trend in remodeling that was more toward personal tastes rather than resale value. These findings are probably due to the fact that homeowners are staying in their homes longer, therefore less concerned with having a house they can sell and more focused on one they love.
PrimeLending has renovation loan options for buyers and existing homeowners. Contact me today to discuss a renovation possibility for you! www.kristathomsen.com
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