What is the COST vs. VALUE for Remodeling Your Home?

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Click here to see the Remodeling Value Report mentioned in the video >>

Real estate in Denver has been going through a series of changes lately – and I am pleased to report they are welcome changes.  After what seems like an eternity, we are finally seeing sales go up, inventory going down and affordable mortgages still very much available.  What this means is that buyers can still find great deals while sellers are enjoying more attention and consequently multiple bids on their properties.

Denver Marketplace Seeing Positive Shift

The number of sold homes reported is up 13% from the same time last year with 3,800 homes sold as of April 2012.  With 10,000 active listings on the market, inventory is down by 42% versus last year’s figures, indicating a stabilizing market.  Buyers remain active given the record-setting low interest rates that are still available despite what seems to be a recovering economy.  As a result, many homes continue to go under contact in the greater Denver area.

Up 19% from last year, there were 5,600 homes that have gone under contract so far this year.  The good news continues with the average Days On Market figure dropping 19% from the previous year, with the current average days it takes to sell a home being less than 90 days.  The average sold price is inching upward too, with the current median price at $275,000 – up 10% from last year’s numbers and up 6% from just last month.

These changing trends are welcome news to everyone and they have opened up the path to success for many sellers that were otherwise wary of selling in an uncertain market.  Most sellers are receiving multiple offers on their homes within the first two weeks of listing – adding to their confidence in an upward trend that soon might very well mean an increase in home values.

One of the main things that result in selling success is the ability for sellers to set their property apart from others in the area.  What this means is that their home is priced right, presented well and has desirable amenities or features.  A common practice among many sellers before they list their home is to rehabilitate areas of the home that need repair, enhance existing structure or add new features entirely.

Significant Returns on Investment When Remodeling Prior to Sale

Before you delve into renovating your home it is a good idea to consult with a professional to learn of areas that will yield better returns on your investment.  On this blog, below is a link to a report that shares the aspects of a home that will yield the most return – and it is broken down by price category.  For mid-level priced homes the most sought-after updates are usually in the bathrooms and additional bedrooms.  The percentage return, according to the report, can be as high as 53% or more depending on your renovation.  Upscale homes are also seeing significant returns on renovation investments.  Bathrooms and kitchens are the main areas of focus in these homes with an expected return of 52% for a bathroom addition, 62% for a major kitchen remodel and 71% for a minor kitchen remodel. For more details, access the report directly here.
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Before you embark on any major changes to your home it may be a good idea to consult with us for a walk-through on your property.  With years of experience being able to recognize exactly what buyers will be more inclined to respond favorably to, we can help you determine what changes you would most benefit from in the home.

As always, our success is in your success and we look forward to the opportunity to serve you!