Recouping Remodeling Costs At Time of Resale

Recouping Remodeling Costs At Time of Resale

More and more people are asking what they can do to position their homes to be the most competitive value amongst other homes that are for sale.  The trend right now is replacement versus remodeling.  People are swapping out the old for new rather than doing a total gut job on parts of their homes like bath rooms, master bedrooms or the laundry room.

Mot remodeling or updating projects will get you an average of 70 cents on the dollar at the time of resale.  What we can’t compute is how much more you get, or may get, as a result of the higher appeal of your home after having made the improvements.

Here is a list of some of the simplest, lowest-cost projects that will certainly put a smile on your home and on the faces of buyers.  The best investments are a new or freshly painted front door and garage door.  Replace windows that have lost the seal.  Replace appliances and kitchen cabinet hardware and countertops. Power wash the siding and soffits. Replace dead shrubs and plants. Upgrade lighting fixtures and consider having your home professionally cleaned inside and out. 

Obviously, you can’t do it all but pick out those items that you truly know your house needs and peck away. Don’t forget that you get to enjoy the improvements in the meantime and Enjoyment is priceless!

Life Is A Gift…Live It!

Gary Nathan

10years of Washburn Co Stats

11 Years of Sawyer County Residential Sales

Hopefully you will find the information in the table and graph below interesting; it is sales data for the past eleven years from 2001 through 2011. The numbers provided here are gathered from the Multiple Listing Service and specific to Sawyer County; the sales and averages do not take into account sales that occurred between parties that did not have their homes listed on the MLS.

All of us have an opinion about the value of our own homes and residential property in general. What strikes me is that if we remove the spike down in 2008-2009 (see the graph), and look at 2011 median or average price, we find that values have returned to or are near 2006-2007 levels. Actually 2011 numbers look pretty good compared to the early part of the 2000 decade; we are well above values ten years ago.

If you have owned your home a long time, you have had the opportunity to enjoy it and see it appreciate. The problem is that we too often get caught up talking about the inflated numbers of 2006-2007 or the lower values in 2009. Total sales are certainly off compared to the middle of the decade but even those have leveled off while average and median values have increased. From my perspective, the glass is half full.

Gary Nathan

Life is a Gift...Live It!

Which Remodeling Projects Pay Off?

Many times we work with sellers who ask us whether or not remodeling their home will help sell it or increase the value of the home. While certain remodeling or replacement projects may enhance the property I typically to not hear buyers say they are willing to pay for those improvements. Many buyers view remodeling as work that was needed to be done in order to maintain the home; and to a certain extent they are right.

Before you launch into any major remodeling projects take a look at the latest data as prepared by Remodeling Magazine and REALTOR® Magazine as reported by United Press International (02/20/12).“The resale value of remodeling projects has decreased over the last couple of years. The number has fallen to $10,688 from $17,857 in 2008 for bathroom remodels and to $40,126 from $43,030 for kitchen remodels, with cost-to-value ratios slipping to 57.2 percent and 68.7 percent, respectively.”

“Overall, the top 10 remodeling projects for 2011-12 have a cost-to-value ratio of 71.6 percent, down from 75.8 percent for 2010-11. Replacement projects are more valuable these days because they boost curb appeal. The top five improvement projects and their cost-to-value ratios are siding replacement, 78 percent; entry door replacement, 73 percent; attic bedroom, the most cost-effective means of adding a bathroom and bedroom, 72.5 percent; minor kitchen remodel -- the least expensive way to jazz up the kitchen -- 72.1 percent; and garage door replacement, 71.6 percent.”

“The five improvement projects that add the least value compared to their cost are home office remodel, 45.8 percent; backup power generator, 48.5 percent; sunroom addition, 48.6 percent; master suite addition, 52.7 percent; and bathroom addition, 53 percent.”

There you have it. Instead of major surgery consider doing some lipstick and rouge (paint, clean, de-clutter, organize) to your property. And don’t forget that you will undoubtedly reap some benefit and enjoyment as a result of any improvement including a remodeling project. You can’t put a price on that.

Life Is A Gift…Live It!

Gary Nathan
Amanda Mavis

Tax Refund Scammers

The IRS reports that identity theft tax fraud is #1 on their list of tax scams.

Basically scammers obtain living and deceased peoples social security numbers and file bogus tax returns.

The IRS estimates that over 400,000 people since 2009 have fallen victim to this crime.

To see how how to protect yourself from this type of fraud check out the IRS Guide called "Taxpayer Guide to Identity Theft"

Life is a Gift...Live it!

Gary Nathan &

Amanda Mavis

Listings of the Week

Listing of the week: The house that Big Mac boxes built

Above is a great article on Jon Hunstman, Sr. and his Utah retreat home that is for sale for a cool $50 million.

(picture compliments of Zillow)

Want something more reasonably priced, but equally beautiful...?

Try these listings on for size....

Little Round Lake Restful Retreat

Grindstone Lake Perfection

A View Like No Other on Round Lake

Whitefish Lake Majesty

How to hire a real estate agent

This is a great video from Money Talks News on how to hire a real estate agent.

MSN video - How to hire a real estate agent

As always, Gary and I would be happy to answer these same questions for you.

Life is a gift...Live it!

Amanda Mavis

Positive Signs for the Housing Market

There are a number of reasons why I believe we can call this a positive and forward moving housing market. For buyers there continues to be a good inventory of homes to choose from, historically low interest rates and more reasonably priced properties.

According to the Wisconsin Realtors Assn. (WRA) the Wisconsin Housing Authority Index (HAI) is at 245, compared to the U.S. average of 198. This makes Wisconsin homes more affordable than just about anywhere in the U.S. The index shows how much of a median-priced home a median-income buyer can afford. The higher the affordability index the larger the share of homes that can be purchased. Buyers are getting a lot of home for their money in Wisconsin and Sawyer County.

Since September 2009 the WRA HAI has remained above the 200 mark with the exception of one month. The median priced home in Wisconsin is currently at $132,000 and in Sawyer County the median price is $178,000. Our vacation homes help pull that average up.

November home sales in Wisconsin were well above last year and declining prices has moderated. And remember that there have not been any government programs to stimulate sales – a good thing. The first time home buyer credit was active from the fist quarter 2008 to the third quarter in 2010 so sales have gradually improved since that program ended. The strongest region in the State is the north where sales grew 27.7% over November 2010.

Certainly not all conditions are good; we still have foreclosures and some distressed sales to work through but the foreclosure rate in Wisconsin is low compared to the rest of the country. I know that is not exactly a celebration point.

It looks like we are at or close to being in sync with the fundamentals in housing – prices that reflect the true estimated fair market value. The housing market should be good and stabilize as long as interest rates stay low, inventory of homes remain at reasonable levels and pricing is reasonably affordable.

Life Is a Gift…Live It!

Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15563 Railroad St.
Hayward, WI 54843
nathan@garynathan.com
www.garynathan.com

Christmas Greeting

Merry Christmas!

Gary, Amanda and Barb

Real Estate is Not Dead in Sawyer County

The November numbers are in from the Realtors Association of Northwest Wisconsin's Multiple Listing Service. Most of what we see in Sawyer County has been fairly positive of late with the exception of total homes sold for the year. So, while some of you may be bored by stats here is some reasonably good news. Remember that these are Sawyer County numbers according to the Multiple Listing Service (MLS) for our area and does not include properties sold that are not listed on the MLS.

The total number of homes sold in November was fourteen as compared to ten in 2010; that's a 40% increase over last year. All of northwest Wisconsin saw a 12.4% increase. Year to date Sawyer County has had 178 home sales as compared to 195 in 2010 which is a 8.7% decrease.

The average sale in November was $307,995 versus $233,250 in 2010 which is a 32% increase over last year. All of northwest Wisconsin has seen a 2.1% decrease in November.

The year-to-date median sales price in Sawyer County is $175,000 compared to $151,000 in 2010; that's a 15.9% increase as compared to a negative 4.7% for all of northwest Wisconsin.

While we have certainly had a challenging year in northwest Wisconsin and in our own County please know that the real estate market IS NOT DEAD.

Life is a Gift...Live IT!

Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15563 Railroad Street
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
www.garynathan.com