Which Home Renovations Get the Best Returns?

Some renovations are better than others when it comes to preparing your home for the market. Think about the renovation cost versus the return you will get on your investment.

There are many great Charleston area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (843) 972-3833 for a FREE home buying or selling consultation to answer any of your real estate questions. 

When you are preparing your home for the market, you may want to make some renovations in order to net more money on your home sale. Which renovations get better returns than others?

Keep in mind that less is more. Large-scale jobs aren’t likely to return their full costs but there are investments worth doing in anticipation of an upcoming sale. Some renovations return 100% of their costs while others get less than half of the money back. Still, some renovations can improve your market position and the probability that your home will sell.

Lower cost projects tend to return greater value. For example, the national average cost for a steel front door replacement is $1,200. That is the least expensive project on the list and it also gets the highest return. In fact, you can expect a 101% return on investment. In 43 of 102 markets surveyed, new doors recoup more than 100% of their costs.

Other projects that get a good return on investment are mid-range garage door replacements or upscale garage door replacements, mid-range wood window replacements, and minor kitchen remodels. Notice a pattern here? With the exception of a kitchen remodel, these are all replacement projects.

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Generally speaking, less is more.

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In general, replacements cost less and provide a bigger payback than remodeling or adding square footage to a home. First impressions are very important to buyers, so replacing things that they will see right away, like the front door, garage door, or siding will help you net more money on your home sale. Manufactured veneer gets a 92% return on investment.

When it comes to remodels, though, kitchens will still get you the most bang for your buck. For example, a small, $20,000 remodel will get you a payback of 80%.

Just how much you recoup from home improvements depends on which updates you make and which region of the country you are in. Other factors to take into account include figuring out which updates are typical for your specific neighborhood and, of course, the quality of the work.

Check out this cost versus value report before you get into any renovations or remodels. We even have a professional stager on our staff who can tell you exactly which repairs will help your home sell for the most money.

If you have any questions, please don’t hesitate to reach out to us. We would be happy to help you!

How Are Rising Interest Rates Shaping Our Market?

Interest rates are on the rise in our market. If you’re planning on buying or selling, here’s what you need to do.

There are many great Charleston area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (843) 972-3833 for a FREE home buying or selling consultation to answer any of your real estate questions. 

In case you haven’t heard, the Federal Reserve increased interest rates last December and are planning an aggressive approach in 2017. Since the election, rates have risen in total by about 0.75%, and we can expect them to rise further by a full percentage point by mid-summer.

What does that mean for you as a buyer or seller?

If you’re a buyer, the same home that you could’ve purchased last year will now cost you more. The monthly payment for a $500,000 house, for example, will now cost $200 to $300 more. If you’re a seller, your buyer pool is shrinking because not as many homes are affordable to them anymore.

The good news is that we still have historically low inventory and interest rates. There are also still plenty of buyers out there looking to buy. We know this because, despite this uptick in rates, we still get a lot of inquiries. Buyers even have a bit more wiggle room to negotiate than they would have had in the past because there aren’t as many multiple offer situations happening.

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Both buyers and sellers should act now before rates increase further.

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If you’re planning on buying, do it now while you have a much better chance to lock in a low rate. If you’re a seller, you should also act now before your buyer pool shrinks even further thanks to those rising rates.

If you have any questions or are interested in buying or selling soon, feel free to pick up the phone and give me a call. I look forward to helping you!