Saturday, January 10, 2009

Invest in Your Home


My friend Brian Ramsay (www.realtytrust.com/brianramsay) is a savvy real estate agent who keeps his fingers on the pulse of what is happening in the market. He sent me some great info on how to improve your property value.
You can't go wrong with a minor kitchen remodel. Since remodeling magazine first introduced the minor kitchen remodel category in 2004 it has consistently remained among the highest return on investment (ROI) projects. Last year, the minor kitchen remodel had the highest ROI of any interior project.
Consider living space additions. A remodel that increases living space is gernerally a good investment. When repurposing a room, the gerneral rule of thumb is that unused or storage areas should be converted to livable space, such as a bedroom or bathroom. Keep in mind that repurposing a bedroom is typically a bad idea; home office additons offer a low value return.
Some other good advice from Brian:
Home values made a historic jump in the past decade, and a home remains the best long-term investment opportunity. On average, homeowners reside in a home for six years. Historically, a home will appreciate over the span of six years, whcih is too long to be affected by market spikes.

1 comment:

Anonymous said...

Hi Kim. I wanted to follow-up and mention that not only is it important to always re-invest in your home, but especially now when times are tougher. Consider this, if you have been putting off replacing a roof, repairing a deck, some landscaping or any other contractor related project, now is probably the best time to in the last five years to tackle that project. According to Angie's list their listed contractors are willing to reduce their prices on average of 30% which directly relates to a report that CNN and Money Magazine had on home improvements which are down 12% since last year.

Only the most competitivly priced properties and those in the best condition are selling these days. Regardless if you are in the market to sell or not, your home directly effects your neighbors listed price, which subsequently effects yours down the road.
When a property is not in its best condition it will usually only attract low-ball offers.

Another important aspect to keep in mind is that once you sell your property and any deferred property repairs show up in a home inspection report sellers are going to have to expect to pay two to three times the cost of the repair in a contract re-negotiations. This deferment could also very well even cost you the sale.

I would love to hear of any projects your readers have recently done and what the benefits of this economy brought to the table. Also I am always looking for great people to refer to clients and friends. If you know of anyone that is doing great work for a reasonable price, please let me know. In my March newsletter I will some great information and referrals for landscaping needs around the house.

Talk to you soon.

Brian