Home Improvement – Good and Bad Investments for Cincinnati Homes in 2012

Every year, Remodeling Magazine publishes a cost / value report in which they empirically compare how homeowners invest in their properties and how these investments are extremely profitable in reselling their homes. Although there are many reasons to invest in home repair or remodeling, there are projects that are worth investing in terms of resale value, and those that are worth investing in. who will not be. Here we will dissect the data for the Cincinnati area and help you make good investments for 2012.

Residential Improvements: Proceed with caution The financial performance of residential construction projects reached a national peak in 2005 with a return 85% investment. Now, obviously, these projects vary, but essentially in 2005 if you have invested money in repairing your home, then you could reasonably expect 85% of that money when it's time to sell the House. This number has been decreasing every year since 2005 and has now reached its lowest level in 10 years, so that in 2011-2012, a home improvement or renovation project will probably only get one. investment return of 57.7%. Sinister to be sure, but do not be discouraged. Some projects are still worth the investment, but are penalized by very poor projects. So first, projects to avoid in Cincinnati this year.

The Blacklist – Repair and Redevelopment Projects to Avoid Project to Avoid # 1 Remodeling the Home Office = 36% * Return on Investment

Remodeling your home office is not worth the sentence. Do you think real estate agents often hear this comment from potential buyers: "I know that there were not enough rooms for us and that the kitchen was in bad shape, but I could spend a lot of time there! The answer, simply, is no. The offices are functional and practical for the home worker, but are a luxury compared to an extra bedroom or a slightly renovated kitchen. This will certainly vary depending on your neighborhood and your situation, but as long as people go to work in Cincinnati, a home office will not be worth it to a potential buyer and is not worth it for you as a home improvement project.

Project to avoid complete renovations of bath / kitchen / basement # 2 = 55.7% yield

Although a home office remodeling job will be the largest offender in terms poor return on investment; remodeling your kitchen, bathroom-repair-or-remodeling-vs-additions-and-remodels / "> bathroom, or basement will not pay either.We all want a nice kitchen area but at Cincinnati a complete kitchen renovation job will cost upwards Bathrooms and basements get slightly better at 55.8% and 57.3%, respectively, at the time of sale

Project to avoid # 3 Additions to the house = 50% Back

When conditions were favorable to the housing market, adding to your home was a no-brainer: increasing the total square footage of your home and add to the utility of another room, bathroom or other more discretionary spending In these more difficult times, this sale is not so easy. Home buyers are now a lot more aware of the increase in energy and maintenance costs than a home born and almost $ 100,000 that the average house will cost more to Cincinnati. Cincinnati's bottom-up additions will cost $ 87,491 and a 51% return, while high costs will cost $ 121,696 and a 48% return, making these projects a reality. financial losers.

The Right List – The Projects That Are Worth Their Initial Investment Project # 1 Attic Remodeling = 72.6% Back

Turning your attic into a bedroom (and even adding a bath) is very sensible. You add utility to your home with an extra bedroom and you do not expand the footprint of your existing home which will cost more to maintain and provide utilities for. These projects have a high upfront cost and need to be done carefully (IE do not ignore other maintenance items or neglect the rest of your home, all of this is cumulative). At an initial cost of $ 50,205 (down from $ 51,029 last year) and with an estimated resale value of $ 36,473; a 72.6% yield makes remodeling your attic one of the best financial investments you can make in a home in the Cincinnati area.

Worthwhile Project # 2 Exterior Repair = 62.88% Back

Repairing your doors, windows and cladding will almost always be a better investment than any major renovation project. Not only do these repairs enhance the attractiveness of your home, but they can also contribute to the integrity of your home from water damage and increase energy efficiency; which will bring you dividends, as much for you as for potential buyers. This high rate of return is due in large part to the fact that these projects require relatively small initial investments (less than $ 20,000) and are therefore not as difficult to recover at the end.

Roof maintenance is extremely important and undervalued; however, be careful with whole roof replacements in this context because these projects have a high initial cost ($ 40,000 and over) and are unfortunately not much appreciated as a selling point for homebuyers (50% back ). We suggest looking for roof repairs and regular maintenance.

Worthwhile Project # 3 Kitchen Repair = 65.7% Return

Repair projects long outclassed remodeling projects in terms of return on investment, but this is especially true in the kitchen. With complete renovation projects of more than $ 50,000 in Cincinnati (and a return of only 54%), smaller kitchen projects under $ 20,000 should yield more than 65% and be a much better investment. These minor repairs would include new countertops, tile backsplash, cabinet doors, minor plumbing, and upgrades to your hardware and appliances, as opposed to complete remodeling or change. structural.

Start Your Project

We have tried to describe projects that are worth adopting from a financial point of view and projects that you should avoid as much as possible. And while this information is true for the Cincinnati area; the conditions certainly vary according to the neighborhood, the house, the budget and, of course, the family. The best thing you can do is to contact a home repair professional you trust to see what projects you can do and for how much and then compare (individually or with a real estate agent) this information against the sales data to home in your area to see if this type of investment is worth it in the long run.

* The percentage yield is based on estimates of the cost of such projects and their increase in the sale value of the house. So if you spend $ 100,000 to repair your home, and that translates into a $ 75,000 increase in the selling price of your home, that's a 75% return. All values ​​are for Cincinnati, OH in 2011-2012, Remodeling Magazine Cost compared to Value Report .

If you need assistance with a project or would like to discuss this report, please contact us or comment on:

Call (513) 724-0539 visit us online.



Source by Don Kennedy

Leave a Reply

Your email address will not be published. Required fields are marked *