Renovations and remodeling are on the rise and it might get you thinking about tackling that project for your home.
1. Why should I think about remodeling?
If you haven't updated your home, chances are pretty good that you're behind. Part of selling a home is looking at the competition. A home seller would likely need to see if there are renovations going on in the neighborhood and choose based on the most popular.
2. What factors are responsible for the uptick in remodeling budgets lately? Why is remodeling going to be an increasing trend?
The increase in housing prices is causing people, whether they own a home in Ann Arbor or Atlanta, to consider updating/remodeling their current home vs buying a new home. A home owner has to jump several "stages" in purchase price in order to see the benefit of selling currently. It's also very hard to downsize without going to a less desirable area. All of these factors would encourage someone to "love the one you got."
3. Why you should consider budgeting and tackling remodeling projects you've put off in recent years?
To remain competitive.
What are the advantages of pursuing a remodeling project now vs. a few years ago (e.g., better return on investment/resale value? There's no real value to doing something now vs a few years ago, except that housing prices are much higher, so the theory would be that if your return was 80% on a $400K home, it's now 80% on a $500K home (in some areas). I personally think when the market turned down the first time it caused a lot of would be "move up" families to stay in their home longer. Now their kids are in set in their school (this is true of the mill creek area) and the areas have built up for 7 or so years. So essentially, their time horizons for moving have all shifted. Now they are waiting until kids graduate or the market shifts again.
4. What are some relatively safe home remodeling projects homeowners can consider that offer higher return on investment/payback potential?
It's different for each region of the country but in the South, you can get the most bang for your buck on a deck, screened-in-porches. Bathrooms and Kitchens are always good. Additions can add direct value. It's rare that a renovation would return more than 100% of its cost. Can you provide an example that includes costs and expected ROI? One great example is upgrading to granite/stone/solid surface countertops. In a neighborhood called Hamilton Mill, located in Dacula, just 30 minutes (15 miles) northeast of Atlanta you can change the counters from the laminate to granite and nearly increase the value by $5,000 to $10,000! The reason is that the upgrade has become an expectation. New home buyers always perceive upgrades/renovations to cost more than they do. In Atlanta, as a seller, you're going to have to compete with all the new homes in Atlanta that are going up. If you lived on Marco Island, for example, chances are good you'd have a different set of upgrades.
5. Other Thoughts On Why There Is An Increase In Renovation?
I think the downturn 7 or so years ago is directly related to people staying in their homes longer. In addition, it'd be good to remember that there was no new construction during that time either. New construction is very expensive right now, so it makes sense that people are simply updating their current homes or buying homes and renovating them vs buying the very very limited new construction homes (or the more expensive).
