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HOMEOWNERS
FREQUENTLY ASKED QUESTIONS
How can I improve the value of my
property?
The
biggest factor outside of a homeowner's control is market conditions.
But other issues -- including the condition of the property, specific
home improvements and neighborhood stability and safety -- can
influence property values.
The
greatest rise in home prices occurs when the economy is strong
and the number of home sales is increasing. Though markets vary,
that has occurred several times in recent history -- including
the early 1970s, late 1980s and late 1990s.
Specific
home improvements can increase the value above the cost of the
improvements. According to Remodeling magazine, which publishes
an annual "Cost vs. Value" remodeling report, a remodeled bathroom
returns 81 percent to the owner, a bathroom addition, 89 percent
and a master bedroom suite, 82 percent. Remember, quality pays.
Well-planned and well-executed remodeling jobs are a good investment
while bad work seldom enhances value or livability.
The
safety and security of a neighborhood can affect property values,
too. If you live in a high-crime area, an organized community
watch program not only will lower the crime rate but give home
values a boost, too.
What
kind of return is there on remodeling jobs?
Remodeling
magazine produces an annual "Cost vs. Value Report'' that answers
just that question. The most important point to remember is that
remodeling a home not only improves its livability for you but
its curb appeal with a potential buyer down the road.
Most
recently, the highest remodeling paybacks have come from updating
kitchens and baths, home-office additions and extra amenities
in older homes. While home offices are a relatively new remodeling
trend, for example, you could expect to recoup 58 percent of the
cost of adding a home office, according to the survey.
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