Thinking of Remodeling Your Crib Anytime Soon? Consider a HELOC or Refinance to Upgrade Your Home. Find Out Which Improvements Add the Most Value

Have you been thinking about updating or upgrading your home with a home equity loan, cash-out refinance, or home equity line of credit (HELOC)? Every year, Remodeling Magazine conducts a survey of home remodeling projects that keep track of which home improvements can earn back your investment when it comes time to sell your home. While resale value isn’t the only reason you could want to upgrade your home’s appearance or amenities, before you sign your loan documents and get started with your remodeling project, you should probably know the types of projects that do add value and be aware of the ones that don’t.

Which home improvements add the most to resale value?

According to Remodeling Magazine’s 2019 survey of home improvement projects, the average cost of a project was $63.4 thousand, and the average return-on-investment (ROI) was $37.5 thousand for a 66.1% cost/value ratio. This comparison includes nearly every type of remodeling project you could think of, from the master bedroom suite room additions to bathroom and kitchen remodels.

None of the home remodeling projects surveyed have a 100% or greater return on investment, but the top improvement in 2018 and 2019 was an upscale garage door replacement. At an average cost of $3,611, the improved garage door returned over 97% at resale ($3,510). Replacing doors, windows, and entryways all averaged between 70% and 76% ROI.

A wood deck addition returned over 75% of its cost at resale, but composite decks: not so much. At an average cost of almost $20,000, they returned only about $13,200.

If you’re thinking about doing your kitchen over, it’s worth considering the scale you’re willing to invest in. Major kitchen remodels costing over $130,000 returned less than 60% of their investment, while minor kitchen remodeling projects of about $22,000 came the closest to paying for themselves, at an 80.5% ROI.

You may be doing some remodeling projects for yourself, and your enjoyment of your home should always come first. Over the years and in general, home improvement projects that add more to the value of your home tend to fall in the “curb appeal” category, like landscaping, entry doors, window replacements, and new, upgraded garage doors.

With home mortgage refinances rates expected to remain low for 2020, this year could be the time for you to consider making changes to your home. A mortgage loan and refinance professional can help you to find the right loan product to pay for your remodeling project.

Sources

https://www.remodeling.hw.net/cost-vs-value/2019/key-trends-in-the-2019-cost-vs-value-report 

Ready to Remodel? These Home Renovations Will Pay Off the Most (and the Least) in 2019

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Walkability Scores, Safety, Schools: Are They An Afterthought Or an Essential Requirement When Considering Home Buying

If you’ve looked at even a few home sales listings online, you’ve probably seen the terms “Walkability Score,” seen local schools listed, and local crime and safety statistics. Several websites provide information about how easy it is to walk for needed services and shopping in a neighborhood. Websites usually draw safety information from local police reports, and they use rating sites like GreatSchools.org to show you the quality of local education.

How important this information is to you will depend on your short-term and long term plans. If you don’t have children or plan to send your children to private school, for example, a school rating score probably won’t be a deciding factor in which neighborhood you choose to focus on or which home you ultimately choose to buy. But the walkability score could be an important factor no matter what your family composition or circumstances.

How are walkability scores calculated?

The Walk Score website provides scores to real estate listing services, and also city and county planners. The website measures “walkability” on a scale of 0-100 based on the distance from a location to grocery stores, retail centers, restaurants, and parks. It also measures school “walkability” and can add public transportation scores.

Added “in depth” scores the Walk Score website can calculate include pedestrian friendliness, which includes how dense a local population is, how long blocks are, and how many intersections residents need to cross before reaching destinations.

According to Walk Score, the service has analyzed over 10 million locations in the US, and over 2 billion walking routes.

Walk score rankings include:

  • 90-100 “Walker’s Paradise” – all errands can be accomplished without a car.
  • 70-89 Very Walkable – most errands are good without a car.
  • 50-69 – Somewhat Walkable – some errands are accomplishable without a car.
  • 25-49 – Car-Dependent level one – most errands will need a car.
  • 0-24 – Car-Dependent lowest level – few to no errands can be accomplished without a car.

Depending on your lifestyle and work schedule, a walkable neighborhood could be one of your top criteria when looking for a home to buy. With more people working at home, you may find that driving less and walking more fits your lifestyle perfectly.

Sources

https://www.walkscore.com/

https://www.redfin.com/how-walk-score-works

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COVID-19 Causes Zillow to Pause Its Home Buying Program: Understanding How It Can Affect You

Online real estate service Zillow has a home buying program in 24 states. It stopped the program March 23, 2020 due to COVID-19. As the pandemic has continued, home buying and selling has been changed in every state, including ones with no “stay at home” or “shelter in place” orders.

In California, after initial disruption due to COVID-19, by the last week of March, real estate was added to the state’s “essential business operations.” This meant that home sales can continue, but precautions are advisable. A survey conducted by the California Association of Realtors in mid-March found that 54% of its members saw a decline in buyer interest. Some sellers have also backed out of their sales due to COVID-19, but the overwhelming majority were staying in the market.

California Real Estate Pros Are Working Virtually

The California Association of Realtors requested that all of its members should cease open houses shortly after Gov. Gavin Newsom announced that all Californians should stay at home starting March 19, 2020.

Before COVID-19, 75% of California’s realtors weren’t offering virtual tours or sales, but now they’re essential. Virtual closings are possible too, and are being used to continue the buying and selling process.

What Does This Mean for Your Home Buying or Selling?

Count on working with real estate professionals using technology. From virtual home tours to conducting the sales and negotiation process online, you can complete a real estate transaction without personal contact. Using virtual signing methods can eliminate the risk of virus contamination.

Interest Rates Are Low and Helping Buyers and Sellers

After the Federal Reserve lowered its interest rate to zero, interest rates increased for about a week. Real estate professionals found that trend hard to explain, but interest rates have adjusted and as of April 1, 2020, were lower than ever for all mortgage products, from 30-year fixed-rate loans to 15-year fixed rate home mortgages and 5/1 ARMs. Refinancing mortgage interest rates are also low, and experts predict that there will be many opportunities to refinance in the coming months.

California’s economic experts predict that with the $2 trillion Federal stimulus bill, the real estate market will not suffer much due to the COVID-19 crisis. The state’s economy is expected to recover quickly once the stimulus takes effect and people are back to work when the crisis is over.

Source

The Impact of the Coronavirus on the California Real Estate Market 2020

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