Which Improvement Projects Have Best Returns?

February 9th, 2014

Projects that turn unused space you already have in the basement and attic into a finished room and those that boost curb appeal give you some of the biggest bangs for your remodeling bucks, according to the newly released 2014 Cost vs. Value report from the National Association of Home Builders and Remodeling Magazine.

Complete data from the Remodeling 2014 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

The very highest pay-back nationally came from replacing your front entry door, which returns 96.6% of its $1,162 cost when you sell your home. “Low initial cost combined with the positive effect on curb appeal is likely responsible for the high ranking,” the magazine said.

Kitchen remodels are among the most popular upgrades homeowners tackle. Doing a minor kitchen remodel (new appliances and countertops and refacing your existing cabinets) returned 82.7% and cost $18,856 on average.

Turning unfinished space into finished space also had good returns. Adding an attic bedroom cost just under $49,438 and returned 84.3%, while remodeling the basement cost $62,834 and returned 77.6%.

Local Vs. National

While the national figures tell you what the median returns were for homeowners across the nation, you can also look at the data for 120 cities and nine regions. That will tell you what’s going on in the local market.

For Philadelphia area, you may click the image below to view or download the report

2014 Home Projects cost  vs value Report Philadelphia

But to get the best possible return on remodeling, your project has to fit the neighborhood and your home. You wouldn’t expect to recoup the cost of putting gold-plated faucets in an entry-level home and peel-and-stick tile isn’t the best flooring choice for a luxury condo.


To get Real Estate Updates, sign-up to my e-newsletter by filling out this form. You can also subscribe to my Market Insider and get access to valuable market data which could help put you in control of your real estate transactions. Visit my website www.greaterphillyhomes.com for more details.

Amy Sullivan

Amy Sullivan, Keller Williams Main Line Realty

Amy Sullivan, ABR,ALHS,CRS,e-PRO,GRI
Keller Williams Mainline Realty
720 W. Lancaster Ave. Bryn Mawr, PA19010
Cell:610-331-4245|Ofc: 610-520-0100
     
Click Here to Search for Homes
Download My Mobile App

Rising Interest Rates Pushing Some Buyers Off The Fence

January 7th, 2014

Sales of new single-family homes dropped 2.1 percent in November, according to the Commerce Department’s latest new-home sales report. New-home sales reached a seasonally adjusted annual rate of 464,000 units for the month. Still that’s up 16.6 percent from November 2012, and last month’s numbers were close to October’s revised sales pace of 474,000 units — the highest level for home sales since July 2008. “The very low supply of new homes on the market and tight credit conditions for home buyers shows that builders are still cautious about getting ahead of themselves,” says Rick Judson, chairman of the National Association of Home Builders (NAMB). The report followed a Commerce Department report showing that new-home construction hit its fastest pace in five years. Housing inventories, though, remain tight at a 4.3-month supply, with inventories of new homes hovering at a four-and-a-half-year low. Sources: Reuters and NAMB

Though borrowing costs are increasing as interest rates have lifted from their historical lows, some real estate professionals believe the rise may boost home sales. “It will get people sitting on the fence to decide, ‘We better do something or it’s going to cost us money,’” says Margaret Dixon, a real estate sales associate with Crye-Leike in Tennessee. At the end of 2012, Rates on 30-year fixed home loans averaged 3.52 percent. At the end of 2013, Freddie Mac reported that 30-year rates averaged just under 4.5 percent. “A 1.0 percent increase usually affects around $30,000 in buying power,” says Todd Reynolds, a real estate professional with Goodall Homes. Higher interest rates, along with higher home prices, may prompt more home buyers to act quickly before costs rise any more. “They realize the house of their dreams may never be cheaper than it is today,” says Reynolds. “It creates a sense of urgency.” Economists are predicting that rates will likely rise to 5.0 percent or 5.5 percent in 2014. “Most people realize the 3.0 percent-range interest rates are gone, and they’d better be glad to get 4.5 percent,” Jay Bradshaw, an agent in Cumberland, Tenn., told The Tennessean. Source: The Tennessean


Home prices surged 11.3 percent this year compared to 2012, the latest housing data by the National Association of Realtors® shows. A rise in home prices has pulled more home owners out from underwater with the return of equity this year, NAR notes. On NAR’s Economists’ Outlook blog, researchers explain that a borrower who bought a median-priced home in 2004 and held it for nine years – the average tenure in a home – would now have $28,114 in equity (includes combined price appreciation and paying down mortgage principle). A home owner who purchased a median priced home in 2012 would have more than $23,000 in equity, according to NAR research. Home owners who purchased in 2006 and 2007 – during the peak of the market – have faced the biggest falls in home prices, but NAR researchers note they are “nearly in positive equity” territory. A home owner who bought a home in 2006, for example, and owned through 2012 would have been underwater by about $28,200. However, by this year, that downfall has lessened to $4,700. Home owners who bought since 2007 are mostly in positive equity, according to NAR research. Source: NAR

Reposted from Real Estate Report

Amy Sullivan

Amy Sullivan, Keller Williams Main Line Realty

Amy Sullivan, ABR,ALHS,CRS,e-PRO,GRI
Keller Williams Mainline Realty
720 W. Lancaster Ave. Bryn Mawr, PA19010
Cell:610-331-4245|Ofc: 610-520-0100
     
Click Here to Search for Homes
Download My Mobile App

Market ZIP Code Report

November 25th, 2013


Check out my market ZIP code report for October 2013.

Sales report by Zip Code Oct 2013

You can also subscribe to my Market Insider and get access to valuable market data which could help put you in control of your real estate transactions. Visit my website www.greaterphillyhomes.com for more details.

Amy Sullivan

Amy Sullivan, Keller Williams Main Line Realty

Amy Sullivan, ABR,ALHS,CRS,e-PRO,GRI
Keller Williams Mainline Realty
720 W. Lancaster Ave. Bryn Mawr, PA19010
Cell:610-331-4245|Ofc: 610-520-0100
     
Click Here to Search for Homes
Download My Mobile App

Start Your Search Here

November 6th, 2013
Click here to view property quick search. Click here to view property grid.