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Renovations That Add Value to Your Home

Kitchen Upgrade

We’ve all seen those television shows like Love It or List It on HGTV. These television programs have a professional remodel a home that the owners are thinking of selling, meanwhile a Realtor takes them house hunting. Then, when the remodel is complete the sellers have to choose whether to stay in their beautifully remodeled home, or jump ship and buy a new home. Not surprisingly, 74% of owners have a greater desire to be in their home after a remodel. Whether you are thinking of selling or staying, here is a breakdown of the top ten remodeling projects that will add value, functionality and livability to your home.

1. New Roofing:

Estimated Cost = $7,600

Value Recovered Through Resale = 105%

125 E. Maple
45% of Realtors suggest new roofing before attempting to sell, and 1% say that new roofing helps close a sale. *NARI estimated cost of new roofing: $7,600, costs recovered through resale $8,000. 105% of value is recovered in the sale of a home. 61% have a greater desire to be in their home once completed.

2. New Wood Flooring:

Estimated Cost = $5,500

Vale Recovered Through Resale = 91%

http://www.houzz.com/photos/modern/hardwood-flooring
http://www.houzz.com/photos/modern/hardwood-flooring

19% of Realtors suggest new wood flooring before attempting to sell, and 1% say that new wood flooring helps close a sale. *NARI estimated cost of new wood flooring: $5,500, costs recovered through resale $5,000. 91% of value is recovered in the sale of a home. 77% have a greater desire to be in their home since completed.

3. New Garage Door:

Estimated Cost = $2,300

Value Recovered Through Resale = 87%

26% of Realtors suggest a new garage door before attempting to sell, and 3% say that a new garage door helps close a sale. *NARI estimated cost of a new garage door: $2,300, costs recovered through resale $2,000. 87% of value is recovered in the sale of a home. 39% have a greater desire to be in their home since completed.

4. New Vinyl Siding:

Estimated Cost = $12,000

Value Recovered Through Resale = 83%

6% of Realtors suggest new vinyl siding before attempting to sell, and 1% say that new vinyl siding helps close a sale. *NARI estimated cost of new vinyl siding: $12,000, costs recovered through resale $10,000. 83% of value is recovered in the sale of a home. 63% have a greater desire to be in their home since completed.

5. New Vinyl Windows:

Estimated Cost = $15,000

Vale Recovered Through Resale = 80%

21% of Realtors suggest new vinyl windows before attempting to sell, and 8% say that new vinyl windows helps close a sale. *NARI estimated cost of new vinyl windows: $15,000, costs recovered through resale $12,000. 80% of value is recovered in the sale of a home. 61% have a greater desire to be in their home since completed.

6. Kitchen Upgrade:

Estimated Cost = $30,000

Value Recovered Through Resale = 67%

Kitchen Upgrade
photo by Laurey W. Glenn
http://www.thisoldhouse.com/toh/photos/0,,20809021_30141305,00.html

57% of Realtors suggest a kitchen upgrade before attempting to sell, and 25% say that a kitchen upgrade helps close a sale. *NARI estimates that a kitchen upgrade costs $30,000. 67% of value that is recovered in the sale of a home. 82% want to stay once a kitchen is upgraded.

7. Complete Kitchen Renovation:

Estimated Cost = $60,000

Value Recovered Through Resale = 67%

17% of Realtors suggest a kitchen renovation before attempting to sell, and 12% say that a kitchen renovation helps close a sale. *NARI estimated cost of whole kitchen remodel: $60,000, costs recovered through resale $40,000. 67% of value is recovered in the sale of a home. 90% have a greater desire to be in their home since completed.

8. Bathroom Renovation:

Estimated Cost = $26,000

Value Recovered Through Resale = 58%

http://www.hgtv.com/shows/divine-bathrooms-with-candice-olson/bathroom-renovation-ideas-from-candice-olson-pictures
http://www.hgtv.com/shows/divine-bathrooms-with-candice-olson/bathroom-renovation-ideas-from-candice-olson-pictures

45% of Realtors suggest a kitchen renovation before attempting to sell, and 6% say that a kitchen renovation helps close a sale. *NARI estimated cost of a bathroom remodel: $26,000, costs recovered through resale $15,000. 58% of value is recovered in the sale of a home. 62% have a greater desire to be in their home since completed.

9. New Master Suite/Owner’s Suite:

Estimated Cost = $112,500

Value Recovered Through Resale = 53%

New master suite/Owner’s Suite: 4% of Realtors suggest an owner’s suite renovation before attempting to sell, and 1% say that an owner’s suite renovation helps close a sale. *NARI estimated cost of an owner’s suite renovation: $112,500, costs recovered through resale $60,000. 53% of value is recovered in the sale of a home. 88% have a greater desire to be in their home since completed.

10. Adding a Bathroom:

Estimated Cost = $50,000

Value Recovered Through Resale = 52%

8% of Realtors suggest adding a bathroom before attempting to sell, and 2% say that adding a bathroom helps close a sale. *NARI estimated cost of adding a bathroom: $50,000, costs recovered through resale $26,000. 52% of value is recovered in the sale of a home. 78% have a greater desire to be in their home since completed.

 

Statistical information from the National Association of Realtor’s 2015 Remodeling Impact Report.

*(NARI) National Association of the Remodeling Industry cost survey based on a 2,450 square foot home in good condition.

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Move-Up Buyers Win in Denver’s Market

Movin_on_up

I keep telling those that inquire about the real estate market in Denver that it is insane, unless you are a “move-up buyer”.

This week realtor.com ranked Denver fourth in their list of The 20 Hottest Housing Markets in the US Right Now, and with good reason. Last month sales prices in Denver leapt 6.3% over sales prices in February and the average list price per square foot rose from $166 to $235. This is due to the increasingly strong demand for homes in the Metro Denver area and continued low inventory. Population growth, job growth, and low mortgage rates are putting more and more people in a position to buy a home. But, even a surge is new spring listings it is not enough to keep up with the high demand for housing in Denver.

Dozens of buyers are fighting over each available property, and this is where it gets “insane”. In an effort to beat out multiple offers, home buyers are not only offering $10,000 – $30,000 over the list price but are also agreeing to purchase homes “as-is” and to pay cash for any difference between the purchase price and the appraised value of the home. This puts first-time home buyers, and those without large cash reserves, at a great disadvantage. These acts may seem crazy, but they are becoming the new normal, especially for those searching for a home under $400,000.

As stressful and discouraging as this market can be for buyers, there may be one kind of buyer that can greatly benefit from the current market: move-up buyers. Move-up buyers are existing home owners that may have outgrown their current home and are looking to move-up the property ladder.

How Move-Up Buyer’s Win in Denver’s Current Real Estate Market

  1. Profit: Take advantage of your position as a home owner and list your home now. Home prices are at record highs in Denver and that could equal a higher payoff for you.
  2. Timing: In the current market you won’t have difficulty finding buyers who will agree to a lease-back that allows you to stay in your 1st home while you look for your 2nd. It is not uncommon for sellers to ask to remain in their home for up to 90 days after closing. This gives you time to search for your 2nd home after you have a nice down payment in your pocket to work with.
  3. No Waiting: A current average of 36 days on the market means that you won’t have to wait long for your 1st home to sell.
  4. Financing: Continued low interests rates means that you can get a great rate on the new mortgage for house #2.
  5. Finding a New Home: Inventory of homes listed $400,000 – $1,000,000 have shown a slight increase since 2013. If your second home is in that price range, not only will there be more to choose from when you look for house #2, but you won’t have to suffer the same competition as those looking under $400,000.

Movin_on_up

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10 Steps to Winterize Your Home

Winterize Your Home

It’s getting cold in Denver. Follow these ten easy steps to keep the cold out and protect your home from freezing temperatures.

1. Clean Gutters: At some point after all the leaves around your home have fallen and before temperatures get really low you’ll want to clean all of the debris out of your gutters to prevent roof damage, damming, flooding and heavy icicles.

2. Remove Window Air Conditioners: Be sure to remove any window air conditioning units so you can shut your windows and keep the cold air out. Clean units before storing them away until next summer.

3. Disconnect and Clean Evaporative Coolers: Unplug the electricity and disconnect and drain the water line. Be sure to empty any remaining water and clean debris from the unit before putting on your cooler’s cover.

4. Drain Your Sprinkler System: Drain all of the water from your hoses. If your sprinkler system is underground you’ll need to use an air compressor to carefully blow out any remaining water, any water left in the system will freeze and may damage your system.

5. Turn Off Exterior Faucets: Locate the interior shut off valves for your exterior faucets. Turn off the water inside first and then open the exterior valves to let all the remaining water out before turning those off as well.  Add foam faucet covers for extra protection against freezing temperatures.

6. Wrap Up Your Water Heater: Putting a fiberglass cover on your water tank can save you 4-9% on your heating bill. But make sure you don’t block the air intakes or exhaust vents on gas water heaters.

7. Clean Your Furnace: Make sure your furnace is working properly by having it serviced every couple of years. Be sure to replace filters at least every three months or every month if you have pets or allergies.

8. Chimneys: If you have a working fireplace you’ll want to have your chimney cleaned and the flues inspected for tears and damage that could create a fire hazard. If you have a non-working fireplace consider installing a chimney balloon to block heat from escaping up the chimney.

9. Lower Water Temperatures: Most heaters are set to 140F which can take a lot of energy to maintain in the winter months. If you lower the temp to 120F you probably won’t notice much difference and you’ll lower your water heating costs by 6-10%.

10. Caulk It: If you can feel a draft of cold air seeping through your windows and doors you may want to use a foam sealant or caulk to fill in any holes that allow cold air into your home. Caulk works best around windows while foam does better in larger cracks not directly exposed to water or sunlight.

Winterize Your Home