New American Funding Blog

'Tis the season for remodeling

By Courtney Lynch   |  December 3, 2015

Investing in remodeling can offer quite the return. Remodeling a home is a great way to create a space that accommodates your unique needs. According to a press release from the National Association of Home Builders, overall remodeler confidence increased to 59 for the Remodeling Market Index. The RMI for each region varied slightly. The Northeast settled at 59, the Midwest was 61, the South was 57 and the West was 61.

"The confidence in the remodeling industry has been in positive territory for nine quarters in a row as the entire housing industry's situation continues to improve," said NAHB Remodelers Chair Robert Criner, GMR, GMB, CAPS, a remodeler. "With an increase in existing home sales, remodelers received more signed contracts and calls for pricing."

Typically an RMI more than 50 means remodeling activity is higher for those professionals participating in the survey. 

Improving housing market responsible for increasing confidence

The noticeable confidence among professional remodelers is likely due to the real estate industry's improvement.

"The rebound in remodeler confidence tracks the overall arc of the housing industry as it gains strength through new and existing home sales," noted NAHB Chief Economist David Crowe. "Gains in the RMI are tempered by ongoing labor shortages for work on remodeling projects."

In addition, remodeling activity may also see an increase due to individuals selling their homes because demand for housing is so high. 

Remodeling for resale 

If you are considering selling your home and you want to invest in renovations to increase the profit, HouseLogic recommended investing in dependable remodeling projects

Of course while updated kitchens and bathrooms are well-worth the costs, there are additional projects that can increase the appeal of your home. 

Curb appeal 

When investing in your home, make sure you remember to consider the exterior. A new front door and siding can really provide a substantial return on investment. 

Buying a new front door is a great way to spend a small amount of money and really pack a punch. 

"It gives you the best bang for your buck in terms of transforming the look and feel of your home," Brandon Erdmann, president of the remodeling firm HomeSealed Exteriors in Milwaukee, told HouseLogic. "Plus, old exterior doors can be a huge source of energy loss. So you're improving the look of your house, improving energy efficiency, and you're able to do it without breaking the bank."

New siding is another way to increase the value of your home. Make sure you research different types of siding available and weigh the cons and pros of each. This will help you settle on the best decision. 

In addition, painting your garage door or replacing it entirely is a great way to add value to your home. 

Outdoor space 

The exterior of your home is truly a great place to invest your time and money. HouseLogic recommended adding a deck or extra patio space. Potential buyers will be especially interested in the presence of additional outdoor entertaining space. 

"When the economy soured, deck-building soured," says remodeling contractor Lino Carosella, according to HouseLogic. "Decks are a bit of a luxury, and homeowners tended to spend on necessities, such as upgrading their kitchens and baths. But now decks are coming back."

Make sure you accentuate your new deck with landscaping. Plant some flowers and shrubs to add appeal to your outdoor oasis. Adding mulch is another way you can really make your outdoor space appeal to potential buyers. 

Heater and air conditioner 

According to the DIY Network, another way you can invest money in a home is by replacing your heating, ventilation and air conditioning system. This is a great way to improve a home and increase overall appeal. When interested buyers come to check out the property, they will eventually have a home inspection completed. By ensuring the professional will be able to report a brand new HVAC system, you can rest assured your home will likely appeal to those who are considering purchasing it. 

Plumbing and wiring 

Speaking of home inspections, investing money in improving the plumbing and electric wiring in your home is a great way to ensure your house is even more appealing after the inspection. Rusty pipes or faulty wiring will wind up costing you a great deal in the long run and spending the money to replace and fix them now is well worth the investment. 

Home office hubbub 

As more employees having flexible work-from-home options, the demand for home offices has increased. Fortunately, you don't need to spend much on a remodel. In fact, you can simply stage an existing space as a home office to increase appeal. 

Whether you are wanting to sell your home now or want to enjoy some improvements to the space, remodeling projects can truly enhance a space. Do a little research and figure out what projects are best for you and your situation.
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