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Home Value and Remodeling Now

Posted by Woodrow Aames ~ May 14, 2010

When economic times are topsy-turvy, more people choose to remodel their homes than put them up for sale. But you'd be surprised how many keep their eyes on the time when they expect a rebound. I've seen many blog posts about how tricky it can be to gauge the time to a more favorable market and whether you can count on the full return on your remodeling investment come the thaw.

If you're committed to selling, you just may be committed to waiting now, undertaking small improvement projects to dress up your home or add features buyers are likely to covet. Getting a comparative market analysis (CMA) from a Realtor may influence your decisions. A CMA weighs considerations like lot size, square footage, and number of rooms. Then your home is matched against sales of homes in the neighborhood that offer similar features.

Pricing Your Home

Real Estate.com offers solid tips on how to price your home. They suggest that you calculate value based on the following variables: Interest Rates, Supply and Demand, Economy, Location, House Condition, Size, Tax Rate, Amenities, and Terms.

    Authors also suggest that your list price should fall between 2.5 and 5 percent of the final price you're willing to accept.

    Choosing Renovations

    Often your choice is made for you by economic realities. Making your home more comfortable for your family may not map directly against the wish list buyers will have when the market turns. Can you turn lemons to lemonade without busting your savings account?

    One way to be safe is to renovate and repair with a mind toward eliminating negatives. For example, if the sound of nearby traffic has grown, check your windows for tightness and sound ratings. If there's visual pollution from a nearby eyesore or adjacent neighbor, consider new fencing and landscaping. If the crime rates are up in your neighborhood, think about installing outdoor lighting, security gates, or home security systems.

    I've blogged in recent months about projects that currently seem to have a decent return on investment, like basement remodeling projects. Small kitchens and small bath improvements and additions are also faring well in the current economy.

    There are many variables to consider right now-equity notwithstanding. Submit your plans to several bidders and gather estimates. We can help you to understand your price quote.

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