Home remodeling becoming a popular option
Many homeowners would like to purchase a home with more space and special features. But they hesitate because of rising prices and minimal inventory in their market.
Instead, they decide to remodel their existing home, thus making it more attractive for their family and enhancing its value when they do sell in the future. A particularly good starting point is outdoor remodeling projects.
"Homeowners looking to tackle a remodeling project should head outside, according to a new report from the National Association of Realtors and National Association of Landscape Professionals," NAR reported.
The 2016 Remodeling Impact Report: Outdoor Features, reports that not only can outdoor remodeling projects add value to a home on resale, but they can also bring advantages to homeowners planning to stay in their homes in the form of increased happiness.
The report pointed out how strategic outdoor remodeling can strongly enhance the value and marketing of the home.
"Realtors understand the importance of curb appeal because when it is time to sell, a home's exterior is its first impression to potential buyers.
"They also know that these projects - from flower beds to fire pits - can bring homeowners who have no plans to sell even more enjoyment and satisfaction in their home."
According to the report, which analyzes the reasons why homeowners complete outdoor remodeling projects and the financial and emotional value the finished projects bring to the homeowner, taking care of your home's lawn will bring the most bang for the buck. Looking at the outdoor projects that produce the largest financial windfalls at resale, Realtors ranked seeding lawn the highest, recovering 417 percent of the project cost at resale.
"Seed lawn is followed by implementing a standard lawn care program (303 percent of cost recovered) and updating landscaping with sod lawn (143 percent recovered) as the most cost-effective projects."
Q. Is there any difference in home price gains in Democratic vs. Republican controlled areas?
A. Apparently there is quite a difference. A study was recently conducted by ATTOM Data Solutions. It analyzed homeowners living in Democrat-controlled congressional districts have gained more than twice as much in housing wealth as homeowners living in Republican-controlled districts over the past eight years.
A few key findings in the study:
"Among 2.4 million, single-family homes purchased eight years ago, those in Democrat-controlled districts have gained an average $59,467 in value since purchase - a 21 percent return - compared to a $22,086 gain, representing a 10 percent return on investment for homes in Republican-controlled districts.
"Homeowners in Republican-controlled districts are paying lower property taxes - $2,514 on average representing a 1.02 effective tax rate compared to $3,659 representing a 1.07 percent tax rate for homeowners in Democrat-controlled districts."
Q. How much are rents expected to rise during the coming year?
A. A recent report from a noted research firm, Zillow, predicts rent increases in specific areas.
"West Coast metros will see biggest rent increases over the next year. Rents across the nation are expected to maintain a 1.7 percent growth rate, while rents in Seattle and Portland are forecast to appreciate by more than 6 percent.
"Nationwide, rents are forecast to rise 1.7 percent over the next year, the same rate of appreciation as the past 12 months. Rents will rise in 34 of the 35 largest U.S. metros, though 11 of the 35 are expected to report slower growth," Zillow reports.
Q. Has the HARP program been extended?
A. Yes, the Hope Refinance Plan (HOPE) has been extended to year 2017. It can save thousands of dollars each year for many homeowners.
The time to take action is now. Once you are locked in to a lower rate, you're in.
• Email Jim Woodard at storyjim@aol.com.
© 2016, Creators Syndicate