Are you thinking about taking on a remodeling project or two in your home? Upgrades are a great way to get more enjoyment out of your home and, in many cases, help your home to sell more quickly and for a better price when you decide to put it on the market. As a Realtor in Cincinnati I see a lot of renovation projects in homes; bathroom remodels, additions, and new kitchens are the most common. More often than not, home sellers want to know ‘ did I do the right thing?’

The Return on my Remodeling and Renovation Investment

One of the first questions most people ask when considering a home renovation is, “Will this help the resale value of my home?” Remodeling Magazine has a very helpful online tool to assist would-be re-modelers answer this question. This tool can tell you, based on the city in which you live, the return on investment of popular home renovation projects.

Some of the top five mid-range remodeling projects in Cincinnati might surprise you. For example, replacing your entry door with a steel model provides the single greatest return on investment (76.1% of a $1270 project). Turning an attic into an extra bedroom came in second (71.4% of a $54,517 project), followed by replacing your garage door (68.2% of a $1345 project).  Replacing your siding with new vinyl siding came in fourth (64% of an $11,701), and embarking upon a minor kitchen remodel (63.7% of a $22,239 project) rounds out the top five.

It is important to note that even the projects that generate the largest return on investment do not recoup their entire costs upon resale. If you are considering remodeling or renovating your home it would be wise to consult a real estate agent during the process. Proper planning can help you maximize your enjoyment and investment.
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The diagram from USAA does a great job of showing the difference. It costs the same to rebuild identical houses in Cincinnati, but depending on where those houses are they would sell for different prices. If you insured your home based only on the recent tax assessment or sale price you could be under insured – considering the rising price of construction materials. It is very important for you to contact your insurance agent or insurance company and make sure that you home is insured for the replacement cost so that in the event of a disaster you are not under-insured.

To be completely fair, what the tax credit did was encourage people who would have purchased a home in the summer make an earlier decision. The tax credit was an incentive and it front-end-loaded the sales activity in the housing market. As I predicted and explained in our January post the first time home buyer tax credit impacted the real estate market cycle, accelerating sales activity by nearly 2 months!

What I am seeing is that the market in Cincinnati is still active despite the tax credit expiring. Buyer are still looking for homes and some made the decision that in their price point $8,000 was not enough of an incentive to purchase a home they really did not love. I am also working with a lot of buyers who did not qualify for the credit for one reason or another. They still want to buy.

The Tax credit was an economic stimulus measure to create economic activity in the market to boost the economy. It was not a subsidy for home ownership, in my opinion. When people buy homes they need ancillary services like movers, painters, contractors, plumbers, and carpenters. Home sales generate a lot of economic activity outside of the sale and that is what the tax credit was designed to do, I think, and from the numbers it looks like it served its purpose.

If you have been thinking about doing a bathroom renovation, or possibly have dreams of a new kitchen it is important for you to now make sure that your contractor is certified by the EPA to work in an environment with Lead based paint. The contractor must take a course and pass an exam to be certified, or be supervised by someone who is certified in order to do the work.

In real estate transactions bank underwriters are requiring bids come from EPA certified contractors before they will approve home loans.  Currently the contractors I work with are all signing up for the EPA course, but it will take time for all of the local Cincinnati contractors to get this certification. This is slowing down a number of the transactions that are in process thanks to the tax credit.

The best advice I have for my clients is to be patient. The contracting, real estate, and lending communities are all aware of the regulations and we are all cooperating to serve our clients as best we can. Please watch the video above for more information about the EPA rules and how it is designed to protect you.

According to the interviews with architects requests for kitchen and bathroom renovations are on the rise compared to last year. 28% say there is greater interest in kitchen and bath remodels compared to the same time last year!

In addition the trends seem to be thoughtful, modest improvements. Unlike in years past, homeowners are being careful not to over improve their homes and they are considering the amount they will recoup when they do decide to resell. In the bathroom gone are the days of towel warming bars, steam showers, and glitzy fixtures. The most popular improvements are:

-Water-saving toilets
-Radiant heated floors
-Accessibility/universal design, or features that are adaptable and allow homeowners to age in place
-LED lighting
-Doorless showers

If you are thinking about renovating your bathroom call me at 513-518-1140 for contractor suggestions and ideas on how to improve your bathroom without over-improving your bathroom!

Recently I have had a number of roof inspections due to the snow cover and the rain. In talking with a number of the roof inspectors I have come up with a list of the things they are actually looking at when they do a roof inspection. I was impressed to find out how detailed they are when looking at the structure. When you are inspecting a roof it is important to use a certified and licensed contractor. If you need a recommendation call me at 513-518-1140.
1. Proper shingle overhangs at gutters, and eves.
2. Measure for, and calculate for proper attic ventilation.
3. Inspect attic intake vents for blockage.
4. Interior attic inspection for moisture, or dry rot.
5. Inspect attic insulation for proper R-Value.
6. Inspect all storm collars at pipes for proper seal.
7. Inspect all valleys for cracks, and determination.
8. Inspect roof for missing shingle granules.
9. Check gutters, and downspouts for blockage.
10. Inspect fasten method used from original installation.
11. Inspect flashings at all walls.
12. Check for loose shingles.
13. Inspect seals on shingles to help prevent wind damage.
14. Inspect all pipe flashings for cracks.
15. Inspect all Attic vents for holes or cracks detraction.
16. Inspect all rubber boots at top of pipes for dry rot.
17. Check to see if shingles are curled brittle, or deteriorated.

As a Realtor it is important that you work with your sellers to maintain the properties in the best possible condition. With the amount of snow we have had in the last few days it I have been calling all of my listings to make sure the occupied properties are being cleared, and that the vacant properties have someone going to them.

We use Zane Rubin for our plowing. If you have plowing needs feel free to call and schedule him. 519-3200

1. Check with the Cincinnati Home Builder Association (HBA) to see if the builder is in good standing.

2. Are they paying their subcontractors on time?

3. Are they in good standing with the Better Business Bureau and do they have complaints filed against them?

4. Call the last 3 to 4 home owners for a reference regarding the on-time completion and quality of their last few home constructions?

5. Is the home warranty through the builder or an insurance company and does it follow HBA standards?

6. How many employees manage construction of your home?

7. Do they have an in-house selection center to make your choices?

8. Does the builder have a Service Department to service the home after construction is completed and you are living there?

9. Is the builder in good standing with the State of Ohio?

Remember that although there are real estate agents present at most new subdivisions, those agents represent the builder. It is important to have buyer representation when building a new home. Please remember that builders have already figured in a buyer’s agent commission so you will not be penalized for having a buyer’s agent. If you are in the market for a new construction home contact me Alison.Moss@Comey.com for a free consultation and representation.

NATIONAL ASSOCIATION OF REALTORS® statistics show that home prices have fallen by an average of 7 percent nationally in the past year. But the value of home owners’ investment in remodeling projects has declined only 3.86 percent on average between 2007 and 2008, according to Remodeling’s 2008–2009 Cost vs. Value Report.

Remodeling produces the Cost vs. Value Report each year in cooperation with REALTOR® magazine. REALTORS® responding to a survey in midsummer said home owners could expect to recoup a national average of 67.3 percent of their investment in 30 different home improvement projects. At the height of the housing boom in 2005, home owners could expect to recoup a national average of 86.7 percent on projects.

For more specific information on how much you can recoup on select home improvement projects.  Please click here.

Energyque spends one to two hours doing a thermal scan of your home and can provide you with some in depth knowledge about how you can improve your home’s energy efficiency. Making certain can save significant amounts of money over the long term. Their pricing starts at $95 for homes up to 1,500 square feet, $145 for home up to 3,000 square feet, and $195 for home up to 4,500.