AEM Mortgage Minute with Deanna Daughhetee

Considering a remodel before listing your home? While home improvement has a great track record for getting a higher sales price, today’s market calls for a little more caution before investing too heavily in those granite countertops.

As many areas of the country are experiencing slowdowns in the housing market, it’s not a bad idea to understand exactly what is happening in your own market before deciding the scope of the project you should take on in your home. It is also a good idea to assess the realistic return-value of your home improvement project prior to proceeding with it.

According to Realtor® Magazine Online, here are some factors that weigh heavily into the returns you can expect from a remodel:

Condition of the rest of your house

Value of similar homes nearby

Rate at which property values are changing in your surrounding area

Whether your home’s setting is urban, suburban or rural

Availability and cost of new and existing homes in your immediate vicinity

So before you pound that first nail, here are some tips:

1. Don’t assume that a dollar invested will be a dollar returned. Most major improvements don’t earn a dollar-for-dollar return in the short-run. Remember: the longer you live in your home, the more the overall value increases.
2. Maintain, maintain, maintain! In most cases, a homebuyer will expect your home to be in working order. Meaning, keeping up with the regular household maintenance is part of your responsibility as the owner and seller.
3. Know how much is too much. Check into the factors listed above from Realtor Magazine before committing to a contractor.

Still unsure about how to get the most out of your biggest investment? Call us. One of our loan officers will be more than happy to tell you more about your specific market conditions and how he or she can help with a loan to finance your improvement project.