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Carol Darby, ERA Justin Broker Co-owner shares market insights about home renovations for sellers. Due diligence should be considered prior to beginning major renovations. The firm is known for their listing and sales activity throughout Bergen, Passaic, Essex and Hudson counties.
ERA JUSTIN REALTY REVIEWS BEST DOLLAR-FOR-DOLLAR IMPROVEMENT RETURNS
“It would be nice if you could count on getting one dollar back when you sell your house for each dollar you invested in renovations. In reality, many improvements return less than the amount invested.
For example, in a past Cost Versus Value Report, published by the National Association of Realtors, as reported by Inman News, nationally, the average percent recouped on a bathroom remodel was 90.1 percent. It was 88.1 percent for a deck addition, 81.2 percent for a family room addition, and 79.4 percent for a major kitchen remodel. In the current real estate market, the ability to recoup large investments will be modified even more.
Does this mean that remodeling is a waste of your time and money? No, but it’s important to do due diligence investigations before embarking on a remodel project. There are many variables to consider,” explained Carol Darby, Broker Co-owner of ERA Justin Realty Co.
Ron Darby, Broker Co-owner added, “First, consider that the figures quoted were national averages. The amount recouped on a remodel depends in large part on where you live and market sales in your area. The return on a remodeling investment will also depend on the value of your home, particularly in relationship to the value of homes in your neighborhood that have sold and closed. It’s important to keep costs in line so that you don’t end up over-improving your home for the neighborhood. Current market conditions dictate that buyers discount a home that’s priced above the value of other homes in the neighborhood. Before remodeling, it’s also important to consider your competition. In some areas, certain remodeling projects are taken for granted. For instance, if you’re in an upscale neighborhood of older homes where most homeowners have remodeled their kitchen and bathrooms, you may be penalized price-wise by the market if your home is outdated. With this in mind, you’re more likely to recoup your investment over the long term. This factor is often referred to as pride of ownership. And, don’t discount the value of creature comfort, a certain sense of well being to be derived from a home that suits your lifestyle. Despite these factors, from an investment standpoint, it makes sense to consider resale value before making an investment in a major renovation. If you’re aim is to recoup as much of your investment as possible, it’s wise to consider home buyer preferences in your area. If your remodeling is not in tune with what buyers want, it could actually decrease the value of your home. Also keep in mind that while trends change, quality and good taste are timeless. The NAR Cost Versus Value Report was based on professional judgment rather than on actual sales data. Therefore, the report is somewhat subjective. However, it does point out the importance of carefully considering before remodeling.
At ERA Justin Realty the words, ‘There is a difference in real estate companies’ is more than a phrase. We live it every day. Because of our daily priorities, we proudly received the prestigious ERA worldwide 2003 through 2010 ‘Commitment to Excellence Award.’ For these reasons ERA Justin Realty has been selected by thousands of buyers and sellers as their Realtor of choice, during our 61 years in business.”
All of the ERA Justin Realty full service sales professionals can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Additional cutting-edge real estate technology also information awaits you at www.ERAJustin.com and www.ERAJustinRealty.com.
