Milwaukee Condo & Real Estate Scene

National Association of REALTORS®: Curb Appeal Matters Now More Than Ever, Say Realtors®

Home sellers, do you know what features are important to today’s buyers? Should you invest in your home by updating your kitchen? How about your bathroom? How about building a rec room in your basement?

These are all very good answers.

However, this year’s Remodeling Cost vs. Value Report suggests that curb appeal is the most important feature of a home. According to Stephanie Singer, writer for the National Association of REALTORS® (NAR) magazine, “for the second year in a row, [the findings in this year’s report, produced by Hanley Wood LLC, suggests] that exterior remodeling projects return the most money as a percentage of cost.”

At a national level, wood deck additions and siding replacement projects returned more than 80 percent of project costs upon resale. Sorry watchers of HGTV’s “My House Is Worth What?” In the vast majority of cases involving remodeling projects, it is unlikely that a home seller will make dollar for dollar on any improvements made to the property. Therefore, why make improvements? Most improvements are made for your own personal enjoyment. However, the law of averages will suggest that you will make just over 80 cents per dollar on deck additions and siding replacement.

Why is curb appeal playing such a major role the past two years? Home buyers in this market have many options. Inventory levels are very high throughout the country. To ensure the best result, sellers must make a positive first impression. This first impression is called curb appeal.

Window replacement and kitchen remodel projects also provide a decent return. Home owners recovered the least amount of their investment for home office remodeling projects and sunroom additions.

According to Singer, the annual Remodeling Cost vs. Value Report “compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country.”

The Midwest has always been protected by huge swings in housing prices. Therefore, it shouldn’t be too surprising that the East North Central region (which includes Wisconsin) returned one of the lowest returns in the country.

Hanley Wood and the NAR understand that improvements are only one factor that affects the value of a particular home. Other factors affecting resale include: home’s overall condition, availability (e.g. inventory levels), condition of surrounding properties, location, and regional economic climate, just to name a few.

If you would like to know your home’s value during the current housing market based on all of these criteria, please call me at 414.412.7980 or e-mail at dray@shorewest.com. I would be more than happy to provide you with a comparative market analysis. Consultation is free.

Singer explains the purpose of this annual report and what it means to home owners who are looking to make improvements to their home. Click here for more information regarding home improvement projects>>>


-----

Labels: Real Estate

posted by David Ray @ 11:50 AM