Yesterday we talked about the hidden costs in home ownership and today we're talking about another type of cost -- renovations!
Some people love "fixer uppers" and some don't. Yet on average the american family moves every 7 years due to the need for a larger / smaller home or upgrades. Sometimes you can prolong the "life" or the "beauty" of your home some renovations; but they can be costly. Just remember that the overall return on your investment depends on a lot of things: the value of your house, the value of the houses in your neighborhood, the housing market, how soon you sell after making updates and the quality of your renovations.
Soooooo... let's talk about what renovations are the best return on your investment! I've laid out the top 5 renovations that yield the largest ROI, including the average cost of the job, resale value and the cost recouped.
Last week we discussed my list of top 10 things you will experience when buying your first home. And today, we're digging a bit more into the five things you should make sure to discuss with your realtor during the home buying process.
1. Is the price right? What is the average home price increase annually? What are similar houses in this neighborhood selling for and are the more or less updated? It's important to understand the current value of your home, and what homes with some renovation are sellingfor so you have a baseline of how your home value will increase and what the return on your investment will be.
2. How long has the house been on the market? It's important to understand the supply and demand of your city, county, neighborhood market. This is a good bargaining chip for you; the longer it's been on the market, the more likely the homeowners will be willing to negotiate to get it to sell.
3. What items, if any, should we include as an addendum in our initial offer? You can...