Existing home sales rose slightly in November, indicating a stabilization in housing, according to the National Association of REALTORS.
Mortgage interest rates are near historic lows and the most current data shows decelerating price declines, along with a modest reduction in the number of homes on the market.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.21% in November from 6.38% in October! The rate in November of 2006 was 6.24%!--
Monday, January 21, 2008
Monday, January 14, 2008
When it comes to remodeling, it's what's outside that counts!
Many buyers judge a house by its exterior. Three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades.
The most profitable project on the national level was upscale siding replacement, recouping 88% of costs upon resale. Wood deck additions and wood window replacements also returned more than 80% of costs, at 85% and 81%, respectively.
On a national average, the only interior project to return more than 80% of remodeling costs this year was a minor kitchen remodel, returning 83% of project costs at resale.
Three other exterior projects were tested. Nationally, adding a back up power generator only returned 58% of the investment on resale, although Texas had a 68% return. Midrange garage additions returned nearly 70% nationally, while an upscale garage addition returned approximately 65% nationally.
The least profitable projects were a back-up power generator, sunroom addition, and home office remodel.
When considering a remodeing project, particularly with an eye toward resale, it's important to evaluate your home's current condition, how the project will change the existing space in your home, as well as how your remodeled home will compare to other homes in your community.
For example, using a breakfast nook to expand the kitchen seems like a good use of space, but using the same space to add a first floor bathroom in an older home that doesn't have one will draw more buyers.
The most profitable project on the national level was upscale siding replacement, recouping 88% of costs upon resale. Wood deck additions and wood window replacements also returned more than 80% of costs, at 85% and 81%, respectively.
On a national average, the only interior project to return more than 80% of remodeling costs this year was a minor kitchen remodel, returning 83% of project costs at resale.
Three other exterior projects were tested. Nationally, adding a back up power generator only returned 58% of the investment on resale, although Texas had a 68% return. Midrange garage additions returned nearly 70% nationally, while an upscale garage addition returned approximately 65% nationally.
The least profitable projects were a back-up power generator, sunroom addition, and home office remodel.
When considering a remodeing project, particularly with an eye toward resale, it's important to evaluate your home's current condition, how the project will change the existing space in your home, as well as how your remodeled home will compare to other homes in your community.
For example, using a breakfast nook to expand the kitchen seems like a good use of space, but using the same space to add a first floor bathroom in an older home that doesn't have one will draw more buyers.
Know Your Closing!
KnowYourClosing.com is an educational website created by LandAmerica to assist buyers in understanding the closing process. Written in easy-to-understand language, the site contains valuable information to help homebuyers make the important decisions involved in what is often the largest financial transaction of their lives. It includes a glossary of terms, links to dozens of helpful resources, and a helpful Q&A section.Check out KnowYourClosing.com, a public service from LandAmerica
Subscribe to:
Posts (Atom)
