As a homeowner, you are probably like many of us, anxiously watching each new report on the housing market, wondering where is this headed and what is my home going to be worth when it is all over? Uncertainty of the current or future value of our homes makes many of us reluctant to invest more funds into renovations.
Encouragingly, in case you’re wondering whether it is wise to invest more into your home, surveys show an increase in the remodeling market. It may seem surprising, but makes sense. Many homeowners are taking advantage of less expensive materials and construction rates to fix-up their homes for future gains. “Homeowners interested in remodeling are in the driver’s seat compared to a few years ago, when swamped contractors might not have even returned their calls.” -The Boston Globe
Remodeling is still advantageous, but which renovations are recouping the highest rate of return? As this survey conducted by REALTOR Magazine discovered, exterior renovations are actually more cost effective right now. The survey used an 80% return as a baseline for projects worth attempting, and the only interior project that reaped a return greater than 80% was a minor kitchen remodel. Other than that, siding replacement, deck additions, and quality window replacement were the winners.
This data, collected from over 65 markets throughout the country, show that buyers are paying more attention to the exterior structural condition of homes, and that curb appeal is definitely important. Landscaping is also cost effective, as there are several affordable possibilities in this area. Studies still show that minor interior projects are worth the investment as well; just be cautious. Request free estimates from prescreened contractors to make your improvements.