The National Association of Realtors just released The 2008 Cost vs. Value Report.  The Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country and found that exterior remodeling projects return the most money as a percentage of cost.

 The resale value of any given remodeling project depends on a variety of factors; A home’s overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project. Not every neighborhood will support additional renovations, that’s why it’s important to consult with professionals like Realtors in your area. Realtors see hundreds of homes every year and can provide valuable insight into what projects and improvements will make a difference with buyers in your area.

Here are some of the highlights from the survey:

•          Wood deck additions and all types of siding replacements returned more than 80 % of project costs

•          All types of window replacements – upscale and midrange– 76 %

•          A major midrange kitchen remodel: 76.0 %

•          A minor midrange kitchen remodel: 79.5 %

•          A midrange bathroom remodel: 74.4 %

•         A midrange attic-to-bedroom conversion: 73.6 %

•        Midrange basement remodel: 72.7 %

•          The regions that generally returned the lowest percentage of costs were New England,  East and West North Central, and Middle Atlantic

 This Week’s Real Estate Insight:

While these renovations will not return 100% of the investment, they often can mean the difference between your house even selling at all, potential buyers “become their own contractors” and go around adding up all the potential costs and subtract that from their offering price.  You might be apprehensive about a major renovation in this economy, but that can work in your favor; you can probably bargain with contractors as  they are feeling it too.  But don’t go just by price, make sure you get good references for contractors

 

 Listen to Sally and Steve here: [47:26m]: Play Now | Play in Popup | Download

For more than 30 years, Rhode Island Housing has invested over $3.2 Billion dollars providing low-interest loans, grants, education, advocacy and consumer counseling to help customers rent, buy and retain their homes in Rhode Island through special programs such as rental assistance, homebuyer education, and safe, affordable mortgages.  

Rhode Island Housing is a self-sustaining public agency, bringing about 400 million in investor dollars into the state each year, by selling tax-exempt bonds, without any funding from the State. Everything earned is reinvested to provide safe and affordable homes for low- and moderate-income Rhode Islanders. Rhode Island Housing has helped more than 60,000 families buy homes and have financed more than 14,000 homes to rent.

This week Rich and Steve spoke with Cathleen Paniccia, the Director of Homeownership at RI Housing about the great programs they offer such as:

HelpCenter Homebuyer Education
First-time homebuyer services
Emergency Housing Assistance Funds
Heat Assistance   Tax Lien Assistance (Madeline Walker Act)
Family Self-Sufficiency
Foundations of Senior Health
Neighborhood Revitalization Program
YouthRAP

This Week’s Real Estate Insight:

As their mission statement says,” Rhode Island Housing works to ensure that all people who live or work in Rhode Island can afford a safe, healthy home that meets their needs. Our belief is that a home encompasses much more than four walls and a roof.  A good home provides the foundation upon which families can thrive, children can learn and grow, and communities can prosper.”

 

 Listen to this week's show here: [46:41m]: Play Now | Play in Popup | Download