Real Estate

Did you know that some home improvements lower the resale value of a home and decrease the number of potential buyers? If you are going to repaint the exterior of your home bright, traffic-cone orange and try to sell it for a high price, think again! Maybe, if the artist Pablo Picasso once lived there that might work, but probably not under any other circumstances.

Some things are counter-intuitive. A swimming pool is an example. Swimming pools are great and highly desirable for many people. However, others do not necessarily think so and only see them as adding unnecessary expenses for maintenance and upkeep.

There are general guidelines to follow, which give you a better chance to increase the resale value of a home by making certain improvements. If possible, work with your REALTOR® who understands the local real estate market conditions before making decisions about investing in renovations to increase a home’s resale value.

Be aware that the industry averages show a percentage of recoupment of the investment and no renovations make back what they cost, in terms of increased resale value. This means you should only consider renovations that you like for other reasons as well as the potential financial impact on the home’s value. The only way to profit from renovations is to do some work yourself.

Renovations — Partial Recoupment In Resale Value

Here are the top ten things to consider with their average installation cost, average increased resale amount, and the average recoupment percentage as ranked by Remodeling in the 2020 Cost vs. Value Report:

1. Manufactured Stone Veneer (applied to the front of the home)

Installation Cost $9,357 — Increased Resale Amount $8,943 — Recoupment 96%

2. Garage Door Replacement

Installation Cost $3,695 — Increased Resale Amount $3,491 — Recoupment 94%

3. Fiber Cement Siding (applied to the exterior of the home)

Installation Cost $17,008 — Increased Resale Amount $13,195 — Recoupment 78%

4. Vinyl Siding (applied to the exterior of the home)

Installation Cost $14,359 — Increased Resale Amount $10,731 — Recoupment 75%

5. Vinyl Windows (double-pane)

Installation Cost $17,461 — Increased Resale Amount $12,761 — Recoupment 72%

6. Wooden Deck

Installation Cost $14,360 — Increased Resale Amount $10,355 — Recoupment 72%

7. Wood Windows (double-pane)

Installation Cost $21,495 — Increased Resale Amount $14,804 — Recoupment 69%

8. Steel Entry Door

Installation Cost $1,881 — Increased Resale Amount $1,294 — Recoupment 69%

9. Composite Deck

Installation Cost $19,856 — Increased Resale Amount $13,257 — Recoupment 67%

10. Asphalt-Shingled Roof

Installation Cost $24,700 — Increased Resale Amount $16,287 — Recoupment 66%

The runner-ups, with their recoupment percentages, are remodeling the bathroom (62%), metal roofing (61%), a kitchen remodel (59%), a bedroom addition (59%), and a bathroom addition (55%).

Summary

Notice that the top ten items that make the most positive impact on the resale price are all exterior projects and most of them are visible from the front of the home. The wise adage of “curb appeal sells” seems to be true when it comes to renovations that generally improve resale value.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.

Buying a new home is a big step for individuals and families. This is a time for celebration as the new furniture gets moved in, everyone gets adjusted, and the honeymoon phase starts with the new home. On the other hand, buying a home also means that all of the responsibilities rest with the owners.

Here are a few common problems that new homeowners face.

Taking Care Of The Outside

Many homeowners are quick to realize that there is a tremendous amount of maintenance on the outside of the home. Now, the exterior is their responsibility and doesn’t fall on a landlord. Sure, it can be helpful to hire someone; however, this can be expensive.

Some of the common questions that homeowners have include how frequently they should water the lawn. There might also be questions regarding which type of fertilizer and when they should use this. Also, the issues caused by weeds can be substantial. When in doubt about these issues, simply reach out to a professional and ask for help. Someone is always willing to lend a helping hand.

Plumbing Issues Are Common

It is important to do a home inspection before buying a home. This will let the potential buyer know about any repairs they might be inheriting. Some of the common issues have to do with the plumbing system.

One of the most common issues has to do with clogs. Sometimes, the clog takes place in the sink when someone tries to force food down the drain. In other situations, toilets might get clogged if something other than toilet paper gets flushed down the toilet. While a basic plunger is a great place to start, it is also prudent to invest in some drain cleaner and a snake.

The Lights Go Out

Sometimes, people are shocked to see the power go out during a storm. In some cases, the power company may need to come out and handle the repairs. In other situations, it might be a tripped circuit breaker. When the power goes out, head to the circuit breaker and take a look at any fuses that might be turned off. Unplug some of the appliances and then turn the circuit breaker back on! This might do the trick, but if it goes out again, call an electrician.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.