Investing in your home will always pay off, for you or for the future owners, but are you uncertain about doing home improvements with the market’s decline? Have you done improvements and wondering if you'll get the return you expected?
Statistics show that nationally home prices have fallen an average of 7% in this past year, but the value of home remodeling projects has only declined 3.86% according to N.A.R.
In the bay area we see the highest rate of return on our home project investments on deck and kitchen remodeling and/or upgrades.
It may be a good time to do those projects that you have been putting off. With bargains and sales across the board right now from retail stores to restaurants, you may have more room to negotiate the price of labor and materials also, more than before. Don’t forget to get at least three estimates on every project and always work with people who have a license. I can’t stress this enough, you'd be amazed by the difference in price and approach.
When remodeling a front porch I made sure to get at least 6 different bids. There was over a $20, 0000 differences for the same job! I make it a point to keep maintaining and improve my property no matter what, and it's paid off and will continue to do so for decades to come. I know that it will maintain value far longer than if I didn't. I also save more money in the long run by heading off what may be bigger future repairs not to mention, receiving the highest rental prices in that market.
Need another reason?
If you're planning on moving, no matter in 2 years or 20, buyers look for what we call "turn key" properties, properties which don't need any work-and they're willing to pay for the luxury. Maintaining your property and making improvements will pay off in the end
Buyers are not shy about making reductions, (sometimes huge ones) in their offer price because they don't want to deal with the hassle or work of doing repairs or improvements themselves. That means the possibility of less money for you and a more complicated transaction.
Think of it in line with all the other maintenance in your life that pays off, your car, your mind, your body, your relationships and career. * Chart from NAR Cost vs. Value Report 2008
Statistics show that nationally home prices have fallen an average of 7% in this past year, but the value of home remodeling projects has only declined 3.86% according to N.A.R.
In the bay area we see the highest rate of return on our home project investments on deck and kitchen remodeling and/or upgrades.
It may be a good time to do those projects that you have been putting off. With bargains and sales across the board right now from retail stores to restaurants, you may have more room to negotiate the price of labor and materials also, more than before. Don’t forget to get at least three estimates on every project and always work with people who have a license. I can’t stress this enough, you'd be amazed by the difference in price and approach.
When remodeling a front porch I made sure to get at least 6 different bids. There was over a $20, 0000 differences for the same job! I make it a point to keep maintaining and improve my property no matter what, and it's paid off and will continue to do so for decades to come. I know that it will maintain value far longer than if I didn't. I also save more money in the long run by heading off what may be bigger future repairs not to mention, receiving the highest rental prices in that market.
Need another reason?
If you're planning on moving, no matter in 2 years or 20, buyers look for what we call "turn key" properties, properties which don't need any work-and they're willing to pay for the luxury. Maintaining your property and making improvements will pay off in the end
Buyers are not shy about making reductions, (sometimes huge ones) in their offer price because they don't want to deal with the hassle or work of doing repairs or improvements themselves. That means the possibility of less money for you and a more complicated transaction.
Think of it in line with all the other maintenance in your life that pays off, your car, your mind, your body, your relationships and career. * Chart from NAR Cost vs. Value Report 2008
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