Financial Conversations with Fitz #19 - Home Remodeling Returns - 05/19/2009
Wow, A little cool this weekend… The soil is back to 50 degrees. Should warm up this week with 70 plus. Might even finish the beans.
I have been doing some loans and having discussions on home remodeling. Some getting ready for sale and some just fixing up a long put off update…..THE BIGGEST WARNING HERE IS “THERE IS NOT DOLLAR FOR DOLLAR RETURN ON IMPROVEMENTS”. According to the National Association of Realtors here are some common returns: Deck addition 76.8%, major kitchen remodel 80.4; bathroom 84.9; new roof 73.9; (I think that is high); family room addition 71.5; master suite 72.6%.
One of the biggest surprises is the replacement of Heating and cooling….Reason being is that each house should have one of these. Same with windows….I am in the process of finishing all the windows in my house that is 50 years old. I did it one window a year.
If you are getting ready for resale, painting is about the most one should do. You might do some touching up of the landscape and do some general cleaning. Better to rent space in local garage rental than be overcrowded in closets, garage and basement. The best way to appear to have plenty of room. No, No to carpeting unless it is real bad shape…..Be sure you don’t improve beyond the market value in your neighborhood. Don’t put cupboard in that doesn’t match the value of the house, same goes for bathroom. Kitchens and baths have the best return. If your remodeling is for resale be sure to check with your realtor before you make a lot of changes….They can be a great help in what works in your area.
Stop in to see us for the best way to line up some refi for remodeling. This is what one is supposed to use their home equity for. Rather than credit cards. ……We can show you what the monthly costs is going to be for your project. Than you can go visit your supply yard for material or your local contractor for bids.
Remember that you should deal with people in community banks and organizations that when they put something together for you that they will be sitting with them at ball games, church or community events. So, if in doubt give us a call.