Today marks the beginning of National Home Remodeling Month.
Renovations are incredibly important for the U.S. real estate market, and the greater economy. So how will you participate? What are some of the remodeling projects you might want to take on? How can your work help the community?
New Home Sales are Tanking, but it’s OK…
New single-family home starts fell to 678,000 units in January. New home sales dropped 11.4% in March 2015. One of the nation’s largest builders is turning to building single-family rental homes instead of properties to sell.
The National Association of Home Builders says it is currently combating water restriction and tight mortgage lending so that members can move more units. New construction may help alleviate housing affordability in some areas. However, there has been a premium set on new construction versus existing housing stock. That may be the biggest reason new homes haven’t been selling, and building more at higher prices may not do anything for affordable housing.
This is all good news for regular homeowners and rehabbers. It means less competition for these resale homes. In turn should help them sell faster, and for more money.
The Many Advantages of Buying Remodeled Houses
New homes have their appeal. But existing ones do too. Remodeled homes offer:
- The latest fashion trends
- Updated floor plans
- New smart home technology
- Current in demand features
- Better energy efficiency
- Lower overall operational cost
- No worry about new construction flaws
- Superior safety measures
- Homes that are up to current building codes
- History
- More mature neighborhoods
In many cases, buyers can still score like new homes, without the expense of a new home. Not having to deal with the big deposits, lengthy waiting periods, or being suckered into using the seller’s attorney and mortgage lender are just some of the advantages of buying a home to remodel.
The Big Value of Remodeling Homes This Month
Remodeling homes is a great way to add value before selling or renting. It can even make you appreciate your own home or rental property more than before. It can be both fun and profitable. This is especially true as we approach peak summer real estate season. Home buyers will be on the lookout for the best looking homes. Sellers that have invested some effort in remodeling could see their homes sell first, and for more. This may not apply to those in foreclosure or who are underwater, but for those with equity or fixing and flipping for a living.
However, the value and importance of remodeling goes way beyond personal gain. Every home remodeled and recycled helps individuals, communities, cities, and the national economy. Remodeling creates jobs and tax revenue. It can certainly help lower crime too. There are plenty of properties out there that need rehabbing. Fannie Mae, Freddie Mac, and HUD are auctioning off thousands of distressed loans and homes. DistressedPro estimates there are some $200 billion in REOs and non-performing mortgage loans out there right now. Certain factors in the works are currently spiking bank repossession rates, and are increasing their need to cut deals and speed up REO sales. So keep a look out, and go hunting for these deals. Hook up with a property wholesaler who can feed you consistent deal flow.
Support National Home Remodeling Month
Home remodeling is great for everyone, so help make some noise about it:
- Grab banners to post on your website
- Publish more blogs on the topic
- Hit social media and knock out some viral videos
- Offer to provide some content for local news sites on remodeling
What Will You Do?
What remodeling projects will you get into this year? Will you fix up your home or second home? Renovate an investment property? Help a neighbor fix up their home? Volunteer to do up a community building?
20 quick remodeling and home improvement project ideas:
- Add an extra kitchen island
- Put in some new smart home technology
- Give the landscaping a make over
- Repaint the front door and replace hardware
- Create new outdoor spaces
- Blend indoor and outdoor entertainment areas
- Experiment with new glass elements
- Add solar
- Install a rainwater harvesting system
- Increase security features
- Add on a sunroom
- Plant a sustainable garden
- Install new flooring
- Repaint the interior
- Add a deck
- Replace kitchen countertops
- Resurface kitchen cabinets
- Upgrade internet connections
- Open up the floor plan
- Replace old windows
Show Off Your Work
Don’t keep your great home remodeling work a secret. Show it off. Post before and after pictures on Pinterest, record time lapse videos for YouTube, create vines, push out press releases, host open houses, and more…
