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New Construction, Renovation and Return on Investment Atlantans take great pride in their homes. They seem to be constantly “trading up,” building new homes and renovating their current residences. As home buyers and empty nesters relocate and redo, their requirements are becoming more sophisticated, changing “desires” to requirements. If you are thinking about moving, consider renovation as a way to extend the value of your home and save the 10% of your home’s value that it takes to move, according to The American Homeowner Foundation. “If you can make things right with your current home for less than 10% of what you could sell it for, it makes sense to stay put and fix it up.” “Kitchens suffer the most wear and tear. And because kitchens tend to follow style and color trends, they often seem dated sooner than other rooms in the home.” Source: “Home remodeling: Pick renovations that pay off,” by Jay MacDonald, as reported on www.bankrate.com In today’s market, renovation not only makes sense from an updating standpoint, it makes financial sense as well. In addition, Atlanta’s builders of new homes and remodelers are finding that Intown buyers want and will pay for upgrades, especially in such high value areas as kitchens and bathrooms. “Remodeling your kitchen or bathroom is the best investment you can make, with returns of over 100%.” Source: “Which Home Renovations are Your Best Investments?” as reported at www.sixwise.com Recent expert reports featured three key recommendations for renovators, remodelers and new home builders:
The midrange kitchen remodel, which included a new layout of a 200 square foot area with a 3 X 5 island, ran an average of $43,862 and delivered a 91% national average return on investment at resale. Stepping up a bit to the midrange category’s major kitchen remodel, average project costs totaled $81,552 and returned a national average of 84.8% return at resale. It is interesting to note that average prices for the two mentioned kitchen remodels have risen steadily since the previous report, which was completed in 2002. The returns, however, have been increasing annually as well, and that’s also true for bathroom remodels. Source: “The 19th Annual Cost vs. Value Report,” a joint study issued by the National Association of Realtors and Remodeling magazine, which polled 2,188 respondents. “…Buyers, especially baby boomers, want a modern kitchen with the cooktop stove and nice cabinets, not to mention wine coolers and Sub-Zero refrigerators,” explained Mary Johnson, a residential realtor in Naples, FL. Source: “Which Home Renovations are Your Best Investments?” as reported at www.sixwise.com
Fourth on the top five most profitable home remodeling projects is midrange bathroom modeling. On a total project cost of $12,918, the homeowners reaped an 84.9% on their investment for a resale value of $10,970. While ROI figures vary from region to region. Source: “Top 5 Most Profitable Home Remodeling Projects,” by Real Estate Advisor, as reported at www.isnare.com A couples’ walk-in shower, new skylights, jetted tub and vaulted ceilings are just the beginning of a bathroom remodel. A midrange remodel costing $10,499 returns $10,727 at resale -- a whopping 102.2% return. Source: Harvard’s Joint Center for Housing Studies as reported at www.sixwise.com. Renovating an existing bath is just one way to add value to your current home. Building an all-new bathroom is another smart addition to an existing home as well. “You can’t lose by adding a bath,” Mary Johnson, a residential realtor in Naples, FL says. Source: “Which Home Renovations are Your Best Investments?” as reported at www.sixwise.com
Putting ROI aside, expert renovators say that making renovations strictly for resale are passé. The experts recommend that homeowners renovate now and enjoy the results. “Just remember for the immediate future, you will determine the value of a luxurious bathroom remodel or sunroom addition. The enjoyment of improving your home for the rest of your time living in it might far outweigh what money you get back when it’s time to sell.” Source: “Should You Remodel Your Home?” by Janet Wickell, as reported at www.about.com
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