The following article is a special report from Zillow.
Zillow issued a released Friday reporting that both national home values and rents rose in the month of April.
According to the April Zillow Real Estate Market Reports, national home values rose 0.7% in April to a Zillow Home Value Index of $147,300. This is the largest monthly increase in home values since January 2006, and it makes April the second month in a row in which home values climbed up.
Zillow also reported that rents rose from March to April, increasing by 1.6%, according to the Zillow Rent Index. Of the 178 markets covered by Zillow, 78% experienced a rise in rents.
The Miami-Fort Lauderdale and Phoenix metro areas saw the biggest increases in home values, rising 1.6 and 1.9 percent, respectively. Values continued to decrease in hard-hit markets like Atlanta, where home values fell 0.7%.
“The housing market continues to show positive signs, with home values increasing significantly in April,” said Dr. Stan Humphries, chief economist at Zillow. “The recovery is moving in the right direction, but we caution that negative equity will cast a long shadow over the housing market. With almost one-third of homeowners with mortgages underwater and unable to sell their homes, inventory is having a hard time keeping up with increasing demand in many areas. We’ll continue to watch this signal as increasing home values turn from a blip into a trend.”
Foreclosures also continued to decline in April, with 6.8 out of every 10,000 homes being foreclosed across the U.S. That figure was down from 8 out of every 10,000 in March.
The following article is a guest contribution from Trulia.
Not all home improvements are created equal. Even in a seller’s market, it’s important that homeowners make the right investments that will yield higher returns. Check out a list of the top 10 myths compiled from the expert real estate analysts Trulia has to offer.
1. Any remodeling project will add value to your home.
While many remodeling projects will add value to a home, some can be seen as a negative by future buyers. For instance, combining two smaller bedrooms to create one larger bedroom may better fit one homeowner’s lifestyle today, but it may cause the home to lose value in the eyes of a future buyer who needs the two separate rooms.
2. Buying the highest-quality materials attracts more buyers.
Installing high-end materials may seem like a wise decision, but it can backfire. For instance, using the most expensive tile in a bathroom may create an impressive appearance, but value-conscious buyers may opt for a more affordable home if the seller has over-improved compared to others in the neighborhood.
3. Adding square footage always adds value.
A better way to think about this statement is to insert the word useable into the sentence. Finished attics and basements – even if considered liveable by local standards – may not be attractive to a buyer if they are not finished to the same standards as the rest of the home.
4. Colors and textures – safe and simple is better.
Keeping a home “vanilla” so buyers can choose their own style and décor might be a safe bet, but it ignores the fact that most buyers just don’t have the ability to visualize the home differently. Without splashes of color and mixtures of texture, sellers can lose value to others that have taken the time to consult with an interior designer.
5. Inside improvements are better than outside improvements.
Not necessarily. If a home’s exterior has been neglected or doesn’t offer a good curb appeal, a buyer might stop there – and then the seller’s efforts on on the inside may not net them any more dollars. To get the biggest bang for their remodeling buck, sellers should start from the outside and work their way in.
6. Adding a bedroom is better than adding a bathroom.
It depends on the starting point. If a seller only has one or two bedrooms to start with, adding a bedroom before adding a second bath is probably a wise choice since most buyers are more attracted to three-bedroom homes. On the other hand, if the home already has three bedrooms and only one bath, the sellers’ next investment should probably be in a new bathroom.
7. Paint hides a multitude of sins.
Dry rot? Fungus damage? Mold problems? Carpenter ants? Termite issues? Nothing a can of paint can’t fix, right? Wrong! Not only does this practice violate disclosure laws in most states, it can set sellers up for liability after the sale, as most buyers will want the sellers to foot the bill for these hidden issues.
8. Converting a garage to living space is a great trade-off.
Nope. A garage conversion is almost always viewed negatively by future home buyers unless the sellers replace the lost garage with another parking and storage space of equal size.
9. Sellers can save money by doing improvements themselves.
For some homeowners, wiring a new lighting fixture or plumbing a new dishwasher is a no-brainer, but for others it may end up costing more later if they have to have the work redone by a professional. Another consideration is local and state laws regarding remodeling work. In many states if a buyer has purchased a home to remodel and re-sell, they must either hold a contractor’s license or hire a contractor to do the work for them.
10. Pools add value to your home.
This is only true in areas where pools are must-have amenities. In most areas of the country, pools have more limited appeal – and the idea of maintaining a pool for ten months out of the year when it can’t be enjoyed won’t appeal to most buyers.
Knowing these top home-improvement myths will allow you to help your seller clients choose the right remodeling projects. But don’t stop there. To keep your pulse on the amenities that are coveted most in your market, talk to local remodeling professionals, contractors, and home-improvement specialists on a regular basis.
Everyone talks about water efficiency and rebates, but not many home owners property managers realize the huge savings and environmental benefits associated with upgrading to more water efficient fixtures. Anyone can easily cash in on cutting water usage while helping their community become more environmentally friendly.
If you’re hesitant about the upfront cost of retrofitting, don’t fret! There are plenty of government rebates that allow you to receive financial assistance to implement water-efficient systems. Here are some of the best ideas available for even the biggest water hogs:
Toilets. Replace your old toilets with a dual flush or low-flow toilets. These dual flush toilets can reduce the typical 1.60 gallons per flush to a reduced 1.28 gpf. If you replace your toilet, you are eligible for a $75-$100 rebate. Just this simple fix will save you $1,000 in water and sewer charged over 10 years.
Laundry. Apartment communities can save 330% more water, or 8,216 gallons of water, per year per unit by using a common-area laundry room instead of an in-unit washing machine. Giving tenants the responsibility of using community laundry facilities make the tenants use the machines smarter and more efficiently.
Irrigation. Rain water is free, why not utilize it as much as possible? Install smart controllers that will turn off when its raining and only turn on when the grounds really need watering. Plus, be sure to install drip sprinkler heads to reduce the overall cost of irrigation.
Showers and Faucets. According to a recent study, approximately 73% of water used in a typical shower is hot water. Low flow shower heads and faucet aerators can reduce water consumption. Reducing water consumption not only reduces the amount of water used, which saves overall water usage, but it also reduces hot water usage. The hot water usage is especially important as this is the most costly water. Installing high-efficiency shower heads will save about 7,800 gallons of water per year in an average household! That is an absolutely amazing number.
Kitchens. Energy Star dishwasher models save both water and energy. There are cash incentives up to $3,000 for replacing inefficient kitchen equipment with water-efficient equipment.
Be sure to give Elite Home Remodeling a call today to find out how we can help you with your new renovations and remodeling projects as well as how we can help you save the environment while saving money!
We all know the economy hasn’t been doing well the past few years. Most notably, the housing and construction industries have suffered tremendous setbacks. However, after several lean years, the home remodeling industry is starting pick up not only in certain areas around the country but also nationwide as a whole. This is in part thanks to a slight rise in existing home sales and existing home sale prices and continued low interest rates.
According to the National Association of Home Builders (NAHB) residential remodeling expenditures for owner-occupied improvements are growing nationally. Spending for 2011 topped $107.4 billion, up 3.5% from 2010. NAHB also tracks an index of remodeling contractors’ confidence and this index hit its highest level in five years in the last quarter of 2011.
Although overall spending has steadily increased, homeowners are spending more cautiously than they were before the economy crashed in 2008. This is causing homeowners to focus more on projects that most need renovating to keep up with modern trends and to keep up the overall value of the homes. Projects like kitchens and bathrooms are particular good investments in today’s remodeling market.
According to a Boston Globe report “between 2003 and 2008, there was a lot of upper-end activity. People were doing expensive kitchen projects. What we hear now is that they’re not gutting everything, but picking and choosing aspects to update.”
This particular trend is especially true for homeowners in the Northern Virginia, Washington, D.C. and Maryland markets. Homeowners want to make sure that they are getting the absolute best bang for their buck and are much more specific and demanding of where their dollars are being spent. This is a product of homeowners focusing most on what they need versus what they want.
Homeowners are also doing much more homework when it comes to selecting the type of fixtures and appliances they need to add to their remodeling projects. Homeowners aren’t looking so much at what they want to install but what is best for the overall value of their home and what is mostly likely to sell. Most homeowners are still a little timid about having their house stand out too much as the market is still tilted towards home buyers.
Fortunately, as the market and home owners evolve, so too does Elite Home Remodeling. We make sure to stay up to date with all of the latest trends and developments in the residential remodeling market and we make sure to give our award-winning service to every home owner we work with. Be sure to visit our website to see how Elite Home Remodeling can help you today!
You know that dark and spooky area under your home that you never like to go to? For most home owners, the basement is relegated to a lifetime of emptiness and clutter. Well now is the best time to make good use of your basement! Consider some of these great options for turning your unused space into a space that is perfect just for you.
- Home Office. More and more people are working from home these days, whether they set up their small businesses or just need a place to do the bills. Unfortunately, the dining room table just isn’t the right place to conduct business. Consider fitting out your basement with an office that uses built-in shelves and has plenty of room for a true office desk.
- Guest Quarters. Do you like having visitors over every weekend but always have to kick them out at the end of the evening? Make your home even more accommodating by adding an additional bedroom and bathroom in your basement to make sure your guests feel nice and welcomed.
- Play Area. If your main levels are dedicated for the adults of the home, make sure the basement is an excellent place for all the little kiddies to hang out. Offer a place for your kids to play with their friends while staying out of your hair. Add lots of little niches, crawling spaces, climbing walls and lots of colors! Don’t forget to use eggshell paint, its easiest to clean.
- Hobby Room. Maybe you are the little kid in the house with all of your model cars and trains scattered all over the living room. Or maybe the laundry room has been taken over by all of your fabric and sewing materials. Makeover your basement to add a room dedicated to your hobbies with plenty of organization strategies to keep all of the hobbies in order.
- Wine Cellar. Now here’s a great idea for the vino in all of us. Line the entire basement with open wine racks, add a small refrigerator for incidentals, and don’t forget a cabinet for the wine glasses. For those with a little more passion for the grapes, add an enclosed wine room for some extra flare. Then, add a sitting area with comfortable lounge sofas that invite guests to relax.
- Relaxation Station. Why bother to go to the spa when you have one in your very own home? Turn your basement into a steam room or sauna. Include all the elements of peaceful meditation and create a beautiful retreat that is just a few steps away (literally!)
- Theatre. The ultimate addition to any man cave has to be a large projection screen with a full 7.1 surround sound system. Don’t forget to add plenty of sound-proofing insulation in the walls to leave the rest of the house in peace and quiet when you decide to turn the volume all the way up.
- Arcade. For kids of all ages, make your basement the true neighborhood hang out spot by including a pool table, pinball machines, ping pong tables, air hockey tables and other fun games to excite the competitive nature in all of us.
With some basements reaching upwards of 2,000 square feet, don’t let that ample space go to waste! Make sure to give Elite Home Remodeling a call today to find out how we can remodel and finish the basement of your dreams.