Remodeling your home may or may not bring a payoff on Home Services

Dec

Remodeling your home may or may not bring a payoff

posted by admin in Home Depot

Question: Allison, we’re thinking of remodeling our Summit Cove home to be able to sell it for more money. Can we get all the money we put into it back out when we sell?Answer: Good question. Many sellers are in your shoes and wonder how much they can re-coup from remodeling. Remodeling magazine’s 2006 “Cost vs. Value Report” shows that homeowners are spending more on home improvements, but recouping less when they resell their properties. The average mid-range kitchen remodel cost $54,241 this year, with a return of 80.4 percent. In contrast, homeowners who spent an average $43,862 last year achieved a 91-percent return. Homeowners saw a return of 85 percent on the average $12,918 bathroom remodel this year, down from 102.2 percent on the average $10,499 project in 2005. Mid-range vinyl siding replacement returned the most at 87.2 percent, and the lowest return was 63.4 percent on a home-office remodel. How much of a return homeowners will achieve when they remodel is based on the overall property value, according to National Association of Realtors President Pat Vredevoogd Combs. You may or may not get all of your money back out when you sell, but if you can enjoy the upgrades you do for a while, that may make it worth it!What can we do to make our place more “user-friendly” for buyers?Question: We want to remodel our property in Frisco to make it more “user-friendly” for potential buyers when we are ready to sell in a few years. Any suggestions?Answer: According to The Chicago Tribune, of the 60 percent of Baby Boomers who plan to stay put during the next five years, 65 percent expect to undertake home improvements, according to a recent Home Depot poll. National Association of Realtors chief economist David Lereah says Baby Boomers are not downsizing because they had families late and do not plan to retire right away. While some are including universal design features in their remodels to help them age in place, others are being reminded by their design contractors that it is important to install such items well before they are needed. Among other things, experts recommend higher toilets and dishwashers, first-floor master bedrooms and bathrooms, shower benches and grab bars, roll-out shelves, and open floor plans to allow wheelchairs to pass through. Boomers can get help from the National Association of Home Builders’ 1,000-plus certified aging-in-place specialists, who understand the importance of aesthetics when it comes to universal design. Survey finds more owners opt to remodelHomeowners, reacting to a real estate market with low inventory and rising prices, are remodeling their homes instead of moving into new ones, according to a survey by RemodelOrMove.com, a Web site for homeowners.The survey of 5,000 homeowners in the fall shows a trend toward large remodeling projects and an increase in the percentage of homeowners planning to do it themselves. The reason, at least locally, is that a housing boom has pushed up prices, making it more difficult for families to “trade up” for a larger home. “If I sell my house and want to move up to at least something as good, it’s going to cost me as much if not more, so I’m better off remodeling my home,” said Tom Maeser, market analyst and president of the Fortune Academy of Real Estate.That’s good news for remodelers, who say they’ve seen business increase in 2006 and expect a good year ahead. Indeed, many builders are reopening the remodeling segment of their business - which they may have closed during the building boom of the past several years, Maeser said.Of homeowners considering remodeling or moving, 50 percent plan to remodel, up from 33 percent last year. About 32 percent said they plan to do their own remodeling, up from 25 percent in 2005. Local remodelers say business is staying steady or picking up. Tom Lee, owner of Southern Home Designs in Myrtle Beach and Florence, said master bedrooms and kitchen renovations are the most common remodels lately. Also, more customers are asking for mother-in-law wings added to their homes, said marketing director Johnnie Greene.Author of the national survey and founder of RemodelOr Move.com, Dan Fritschen, says homeowners who wanted to remodel are becoming more cost-conscious.”With housing prices falling and interest rates higher than they were a few years ago, homeowners are still remodeling, but with an emphasis on managing costs,” said Fritschen.Nationally, remodeling activity picked up in the third quarter of 2006, according to the National Association of Home Builders Remodeling Market Index.The index increased from 45.6 to 47.8 on a seasonally adjusted basis and future expectations moved up by nearly two points to 45.4.The Remodeling Market Index measures remodeler perceptions of market demand for current and future residential remodeling projects.Trillions of dollars in homeowner equity combined with the growing age of the housing stock means that the remodeling market will remain relatively strong in the face of a slower housing market, said Remodelers Council Chairman Vince Butler, a remodeler from Clifton, Va.But a recent study by the National Association of Realtors shows that resale value of many remodeling projects has not kept pace with the cost of the projects.For answers to your real estate questions, call Allison at (970) 468-6800 or (800) 262-8442. Email Info@SummitRealEstate.com or visit their web site at www.SummitRealEstate.com. Allison is a long time local in Summit County. Summit Real Estate ï¿½ The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.