As the new year approaches, we know that some homeowners around the Minneapolis area are thinking about what needs to be done to their homes in the near future.
With any home improvement project, one of the things you should take into account is how it will affect your home's value and whether or not you'll be able to recoup a good part of the money you spend. Yes, we remodel our homes to make them more attractive, more functional, or simply to update worn-out features, but it's always a good idea to evaluate ROI, or return on investment. How much can you expect to get back when you sell or refinance your home?
In today’s market, siding will still provide a very decent return on your investment. Siding is one of very few home improvements that is still currently holding its own in today’s market. Although as you can watch the number go up and down, many home improvement projects have generally been bringing in a lower ROI in the prior ten years.
In the year of 2005 a homeowner could expect an average of 86% ROI on their home improvements. The actual cost to value ratio hit an all time low in the year of 2011 with a 57% ROI. This is a very large difference (more than a third), which ultimately translates into tens of thousands of dollars that is lost for the homeowner in terms of potential recoup of expense.
While the value of the home improvements began its steady decline in the year of 2009, and was interrupted a bit with a slight rise in the year of 2014 that was ultimately followed by another drop in 2015, the real culprit for this decline is in fact the rising cost of the renovation itself.Free Market Economy - How It Affects Home Improvement
The US economy affects a very wide range of industries, especially home improvement and real estate. These are two of the biggest industries it impacts. The rising value of homes has given birth to a cash cow for many homeowners in what is known as ballooning home equity. Many homeowners today have decided to use this new-found money in order to remodel. This in fact is making 2x4’s a very hot commodity. With the rising cost of the material that is used within these renovations comes the rising cost of the whole project itself.
While in fact the average ROI on home remodeling is lower, the percentage varies from project to project within different areas of the country. For example a kitchen remodeling project in Iowa could offer a 50%t ROI; the same remodeling project could yield 100% in San Francisco. It depends on what types of features are in demand in a geographical area.With Exterior Home Improvements, What You See Is What You Get
It has remained fairly constant historically that exterior home remodeling delivers more in terms of ROI than interior upgrades. Many theorize that exterior projects are far less affected by these market fluctuations due to the fact that they are more visible. No one is able to see those newly installed granite countertops from the street. Curb appeal has a very large influence over property perceptions. Of course, if anyone is house hunting they will be looking at the inside of your house, but you need to have curb appeal in order to get them past that front door. People are left with a lasting impression that if the outside of the house is not in good condition the inside will not be in good condition either.
These are the reasons why if you are thinking about selling your home, the exterior as well as the interior of your home should be in tip top condition. The exterior of your home sets the impression. And if you're only going to tackle one improvement this year, may we suggest new siding?
Speak with us here at Quarve to obtain the highest quality siding for your home, in the look you want. We install a variety of siding products, including fiber cement from The James Hardie Company, seamless steel siding, and vinyl siding. Call us today for a free estimate - we can help you select the right siding for your home.We are a licensed MN home improvement contractor, installing siding in the entire Minneapolis and St. Paul area, including western Wisconsin.
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