Technology TransactionsTell Your Buyer: "Don"t Overdo the Remodeling"
With over 80% of all home sales in existing homes, and with many homeowners turning their homes in four years or less, remodeling within the median of the immediate surrounding neighborhood is an important consideration.
Not only do many home buyers prefer older properties, but double-digit increases in home prices in some areas have put new construction out of reach for many homebuyers, according to the Commerce Department. These buyers will then turn to improvable existing properties as more affordable because they are lower in price, reflecting the need for repairs, or cosmetic updates. For those who already own property, remodeling with a low interest equity loan is more attractive than ever, with rates hovering about 9.2 percent. Buyers may purchase an existing property with the intention of obtaining a home improvement loan.
According to the National Association of the Remodeling Industry (NARI), home owners often make mistakes when it comes to home improvement, with over-remodeling cited as one of the most common. Home owners often start a project at the wrong time making building costs more expensive. They also make mistakes when they hire contractors that are not bonded, licensed, and insured. Also, choosing low quality products in order to save money frequently results in do-overs that prove to be costly to the homeowner by lessening equity in the home.
Last year, Americans spent a record $118.4 billion on home renovations, 18 percent more than just a decade ago.