Dec. 15, 2007 - Renovations

Renovations

 Should you invest money in your home if the prices in your neighborhood are flat or declining?  When prices are going up adding money to an asset is a good idea.  When the market as it is today it is important to take in all considerations before going ahead.

Get estimates and then factor in cost overruns.  (10-20%) 
Figure out how much more your home will be worth after the renovation. (Talk with your Realtor®)An appraiser can also tell you market specific what some of your renovations are worth.  Case in point the brand new Cost vs Value index is out.  Lets take a bathroom remodel the average cost for this in New England (CT, MA, ME, NH, RI, VT) is $38,617 and your cost recoup will be 65.9% but if you live in the Pacific ( AK, CA, HI, OR, WA ) the job will cost you $43,884 but your recoup here will be 83.5%  The national average across the board show the cost at $37,202 and the recoup is 66%.

The report showed these projects with highest national percentage of costs being recouped.

88% siding replacement
85% wood deck addition
81% window replacement (wood)
83% Kitchen remodel (minor)
Be sure any project you do has building permits, appraisal standards have tightened along with the credit and an appraiser may not count say a basement remodel as livable space if it was not done with building permits.  

If you are planning in the home for a long time it makes sense to add value to your home.  If you are planning on selling soon check with your Realtor® before you do anything major.  There is always the normal things you should do it to get ready to sell your home.  Paint inside if needed, clean carpets, take down personal pictures and de clutter.  It might not hurt,with the market the way it is to bring in a professional stagger. The outside should have the bushes trimmed and toys and trash put away.  The first view of the house is the most important.

Feb. 9, 2008 - RE: Renovations