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Sunday, December 21, 2008
Investing in our homes still pays off
By Mary Ferguson
12/21/2008
Herald Times Reporter
Quoted: NARI Vice President Paul Zuch, CR
As Realtors, we are often asked: "Does investing in a remodeling project pay off when it comes time to sell your home?"
Remodeling magazine, in cooperation with Realtor magazine, publishes an annual report breaking down remodeling projects and returns on those investments.
The results of the survey sent to Realtors throughout the country indicate that homeowners can expect to recoup an average of 67.3 percent of their investment in 30 different home improvement projects.
These statistics suggest that investing in our homes still pays off. The results vary by region of the country and are categorized by replacement and remodeling projects.
Focusing on results from the Midwest area survey, the following replacement projects lead the way: fiber cement siding, 79.3 percent; vinyl siding, 74.4 percent; and vinyl windows, 68.5 percent.
These replacement projects boost curb appeal, which is important once homeowners decide to sell their home.
The remodeling projects that seem to give homeowners the biggest bang for their buck in the Midwest are: midrange kitchen upgrade, 75.2 percent; attic-to-bedroom midrange remodel, 66.7 percent; upscale bathroom remodel, 64.5 percent; and midrange basement remodel, 56.5 percent.
Although in most cases these statistics come close to the national average, the Midwest region is typically lower than other parts of the country as far as return on investments.
"Renovating before they sell, homeowners get to enjoy the new space themselves, not just make the home more appealing to buyers," said Paul Zuch, president of Capital Improvements, a designing, building and remodeling company in Dallas.
Today's buyers have high expectations for the condition of the property. Gone are the days when a buyer would prefer a "fixer-upper." Most buyers today do not have the time or resources to commit to painting and remodeling projects.
Their expectations would be to have the property in move-in condition, which is less stressful for the buyer.
"People's homes are still one of their best, most solid investments," Zuch said. "Even though the markets have gone through some adjustments, it's still smart to invest in your home."
Some projects like siding, roof and windows could be considered normal deferred maintenance projects, which need to be addressed to keep the property in good condition.
In today's market we must consider that the finance contingencies that need to be met by today's buyers are getting more and more rigid from their overall credit scores to down payment requirements.
If properties have been well maintained and are in move-in condition, we increase the odds that buyers will not only be approved to purchase a home, but be approved to purchase your home.
Mary Ferguson is a board member of the Manitowoc County Board of Realtors.
Reprinted with permission from NARI.org
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