The economy is on its way to recovery, so people have started to think about remodels to increase the value of their homes or properties. Overall remodeling has benefitted from rising home values, and overall, many folks put off upgrades to their homes during the tough economic times. The latest news from to the National Association of Home Builders (NAHB) and its Remodeling Market Index (RMI) shows it climbing modestly in Q3 of 2013 – up two points to 57, the highest reading since the first quarter of 2004. As far as regions, gains have showed up in the Northeast, Midwest and West, while the RMI was down slightly in the South in Q3 after a 2 point gain in Q2.
This most recent RMI shows that major additions and alterations increased from 51 to 55, minor additions and repairs from 55 to 58 and maintenance and repair from 57 to 59.
In fact, NAHB economists predict that within the next ten years the funds spent on home remodeling jobs will surpass that of new home construction. Lower construction costs have a hand in the upturn, especially when these costs are measured up against house values that are now finally stabilizing.
There are many things that factor into how much a home is worth – from location to square footage to the number of bedrooms and bathrooms and even the community or school district, which is a factor that cannot be controlled. The one thing that you can control is how your home looks and functions.
What can you can do to improve your home's value? The two most popular areas in a home to remodel include the bathroom and the kitchen. Many people today are upgrading their kitchens. Let’s say your home is 20 years old. Some renovations could entail repairs like fixing the deck, maybe adding a Jacuzzi, or building out a basement or attic. But do you want to go the extra mile and expense to remodel the kitchen?
New Homes versus Remodeling
On the other hand, what about simply buying a new home? Maybe it is better to let someone else buy your old home and fix it up. Remember that potential buyers will compare your home to ones newly built. Therefore, you'll want to look at the design trends and amenities being built into new homes.
This single story 5,564 sq. ft. luxury house plan features a country mountain style with a large main floor plan with kitchen and dining areas adjacent. Great rooms with an open kitchen and family room, and higher ceilings are just a few of the features sought by today's home buyer.
Just remember that even though remodeling makes your home a more enjoyable place to live, the intangible value of this pleasure needs to be considered, right along with any resale value you hope to gain.
So when it comes to remodeling to improve the sale of your home, real estate experts say that a remodeling investment should not raise the value of your house to more than 10 to15 percent above the median sales price in your neighborhood. The general rule of thumb is that any remodeling project that brings your home up to the level of your neighbors' homes is a good investment.