BEST 2018 DOLLAR-FOR-DOLLAR IMPROVEMENT BENEFITS

BEST 2018 DOLLAR-FOR-DOLLAR IMPROVEMENT BENEFITS

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. Most people hope for more than a dollar-for-dollar return. In reality, many improvements return more or less.

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.

“It’s important to do due diligence investigations before embarking on a remodel project, just as you would if you were considering buying a new home. There are many variables to consider,” stated Teresa Kriston, Realtor agent with ERA Justin Realty Co.

“Consider that the figures quoted are national averages. The amount recouped on a remodel depends in large part on where you live. There’s significant variability from one city to the next, according to the NAR report.  For instance, nationally, homeowners recouped possibly 90 percent on a bathroom remodel. But, the amount recouped for the same job was 109.7 percent in New York City, 100 percent in San Francisco on average.  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. If you have a small home in a neighborhood of larger, more expensive homes, you could come out ahead by enlarging your home. However, it’s important to keep costs in line so that you don’t end up over-improving your home for the neighborhood. Buyers tend to discount a home that’s priced above the value of other homes in the neighborhood. In areas where home prices are stable, you’re likely to recoup more on your remodel investment than you would during times of meager appreciation.

There’s a subjective factor that can’t be overlooked when remodeling. This factor is often referred to as pride of ownership, but don’t discount the value of creature comfort. There’s a certain sense of well being to be derived from a home that suits your lifestyle while aptly reflecting who you are. Despite these factors, from an investment standpoint, it makes sense to consider resale value before making an investment in a major renovation. This doesn’t mean that you should remodel your home with someone else in mind. But, if your aim is to recoup as much of your investment as possible, it’s wise to consider homebuyer preferences in your area. 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.”

Teresa concluded, “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  ‘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 its 68 years of operation.”