Tips To Determine Which Home Remodeling Projects Sell Your Home
The secret to successful pre-sale home remodeling for real estate sellers is to keep up with the Jones', but keep it all in balance. Whether you want to make more money than you spend, or just recoup your remodeling expenses when you sell your home, know what's standard in the neighborhood.
Buying Is About Location, Location, Location
Begin by taking in to consideration which home remodeling projects will fit the overall home values in your neighborhood.
What home remodeling projects can your real estate neighborhood carry? Splurge on granite and you may have your entire neighborhood "oh and awing" over it, but you won't get your money back at resale unless you are in a mid-to-upper range neighborhood. At the same time, if your home in a high-end neighborhood? Put in laminate countertops and your house will sell for less than full value, or worse yet, linger on the market for months. Granite counters, an indoor workout room, and a person home spa may well not pay off in the average neighborhood. Kitchen and bathroom remodels continue to be two of the best investments you can make in your house. They are rooms everyone uses daily.
Don't Let Your Neighborhood Down By Missing Basic Home Upkeep
Invest in your neighborhood by caring for your home, everyone benefits. While there is a modest balance to find, you don't want to be the last responsible household on the block to remodel. Most homebuyers cannot see past wear and tear that brings a dreariness to a home. Buyers will pass up your property in lieu of another home in the neighborhood where the work of taking on the home improvements and repairs isn't so staggering. Fix-up homes generally sell for less money, because of the work and remodeling costs the new homeowner must put into the home.
While it may be more exciting to dream of new luxury amenities, make sure your basic home maintenance needs are covered first. In conversations with Realtors, contractors and architects, the take on home remodeling decisions is unanimous. If the roof is leaking, or the driveway is in extreme decay, potential home buyers will have a tough time getting beyond that. Having just completed a stunning gourmet kitchen won't matter in comparison.
Don't Let Your Neighborhood Down By Missing Basic Upkeep
Before you sign a significant contract with a home renovator, visit neighborhood Minneapolis open houses and newly constructed model homes. Ask the home builder to show you a spec home - he will be glad to answer questions. Consider researching Remodeler Magazine's annual Cost VS Value report to see you have the right remodeling project in mind and which home remodeling projects sell your home.
Tend To Your Home's Exterior
Either paint your home or go for a siding replacement. A vinyl siding job may cost around $7,239 with a vinyl average resale value of $6,914. That means a percentage of cost recovered: 95.5 percent. Your home's curb appeal is the buyer's first impression. It makes a statement to everyone who travels by about the home's condition and how it has been maintained or neglected.
Compare Your Home's Equity To A Minor Kitchen Remodel Costs
A minor kitchen model will cost of in the mid-range of $14,913 with an average resale value of $14,691. It may require some homework to know what is comparable in your neighborhood, and what price range your home is anticipated to fall in. It doesn't take much to overspend when remodeling the kitchen, but you can't go too low-end or the kitchen will indeed be and look cheap. At the same time sellers don't need to spend thousands for professional-grade appliances unless you own a luxury home in a high-ended neighborhood.
Attic Bedroom Remodels Give High Returns
According to Remodeling Magazine's attic bedroom remodeling projects are carrying the best value. The cost of an average attic bedroom remodel runs around $39,200, with an average resale value: $36,649. That means that the percentage of cost recovered was 93.5 percent. Turning an unfinished attic into a 15x15 third or fourth bedroom with a 5x7 bath really pays off in the Minneapolis real estate market where older, highly sought after neighborhoods offer homes with easy commutes but tighter living quarters. The payoff for remodeling your home's existing space is higher than money required for doing a home addition to gain new space. Even putting in a modestly priced master suite addition typically costs about twice as much as finishing an attic.
Midrange Bathroom Remodels
If your home was a newly constructed home - years ago, today it may be missing sufficient bathrooms. Very high on home buyers wish lists is the convenience of a healthy ratio of bathrooms per the home's number of bedrooms. Midrange bathroom remodeling projects carry an average cost of $10,499 with an average resale value of $10,727. Ending with a percentage of cost recovered of 102.2 percent. Spend money to remodel your bathroom and it's likely to come back to you when you sell, particularly if you focus on the master bath. You may be deciding if it is better or sell your home or remain and renovate it. Either way, another bathroom almost always is a sure return on your investment.
You don't have to buy a $500 Toto toilet or designer hardware if you are remodeling fro resale value. Consider that adding a bathroom to a one-bathroom house in a local neighborhood where most existing homes already have two may not return as much as remodeling an outdated bathroom in that same community. A recent article titled Which Home Improvements Pay Off? posted on HGTV says, "The markets in Washington, D.C., Minneapolis, Chicago, Atlanta, San Francisco and San Diego also offered triple-digit returns on a bathroom remodel."
Remodeling Begins With Basic Home Repairs
Basic house upkeep and repairs must be done first. If you're thinking about sinking some money into home improvement projects this year, keep a few things in mind. What you'll get back on your investment depends on:
the current market value of your house
the value of houses in your immediate neighborhood
how much equity your have in your home
your city's housing market
how soon you sell after making improvements
how relevant the remodeling project is to the buyer pool
the quality of the project itself.
"The three main things in real estate are location, location and location," says Nancy Jones, a Realtor with Hunt ERA Real Estate, Williamsville, N.Y. "Some homes will sell no matter what they look like depending on the location and, of course, the right home price. The basic things to keep in mind when choosing your remodeling projects are: neutral colors, clean, and classic style. Then you can almost always count on recouping your investment."
Increasing Home Equity Means More Income For Remodeling
If home prices continue rising in 2013 as is predicted, homeowners can expect to gain home equity that would additionally offset the costs of home remodeling projects. If you are considering selling your home, today we have a Minneapolis home sellers market. It is a great time to tackle your remodeling gain an advantage with home buyers.
Know Your Real Estate Demographics Before Remodeling To Sell
Every home buyer is unique; you will be much clearer once you better understand your local real estate demographics. Some have a limit on what they can spend for a house. Your best decisions will come from a big picture view. If the average real estate buyer knew they don't have to spend money on the upkeep of basic systems, then they're more likely to buy the house and may even prefer upgrading the kitchen or baths themselves. Over70 percent of buyers who purchased existing homes knew what they were going to remodel before they even closed on the deal, according to HanleyWood's Housing Continuum Study, conducted in 2002 in conjunction with Harvard's Joint Center for Housing Studies. The same study showed that 30 to 40 percent of buyers of existing homes made home improvements within six months after purchase.
Harvard Study On Home Remodeling And Housing Improvements
Harvard University's Joint Center for Housing Studies estimates that spending on home improvements increased about 9 percent in 2012. With the US economy and housing market recovering, homeowners are able to investment in their homes more and home remodeling projects are picking up. After languishing for several years, the home renovation and remodeling industry appears to be headed upward, according to the January 23rd report titled "U.S. Housing Stock Ready for Improvement".
After a home's basic repairs are covered, Harvard's study showed where the largest segment of home remodeling project landed: "More than 40 percent of expenditures were for replacements (such as roofing, siding, windows, and doors) and systems upgrades (including plumbing, electrical, and HVAC)". More than a quarter of remodeling spending was discretionary, meaning the projects could have been deferred. Discretionary remodeling went for projects like kitchen and bath remodels, room additions, and structural alterations - each carrying the potential to help a home sell.
Contact Home Destination and ask for Jenna if you are even considering selling real estate in the near future; we can help! Read the full article on which home remodeling projects sell your home.
Jenna Thuening, a residential Realtor and Certified Distressed Property Expert helps Twin Cities families find local real estate listings.11200 W. 78th St
Eden Prairie, MN 55334
Jenna's home page: homedestination.com
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