Irene Mattingley, VIP Mortgage Inc.Submitted By Irene Mattingley, VIP Mortgage Inc., imattingley@vipmtginc.com

   

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Remodeling Value

If you are thinking of remodeling in the near future, you will be interested in a recent report from the National Association of Realtors. It concluded that homeowners who take on remodeling projects gain not only equity and more resale value, they are also more likely to find satisfaction and enjoyment from their home.

The 2017 Remodeling Impact Report reveals the top remodeling projects, as well as the increased value both financially and emotionally that specific projects bring to homeowners. For example, after completing a remodeling project, 75 percent of owners have a greater desire to be in their home, 65 percent say they have increased enjoyment in their home, and 77 percent feel a major sense of accomplishment when thinking of their completed project.

Complete kitchen renovations, kitchen upgrades, bathroom renovations and new wood flooring were highlighted as the most popular interior projects with potential buyers. When asked which interior projects yield the largest financial return upon resale, Realtors named hardwood floor refinishing (recovers 100 percent of project costs upon resale), new wood flooring (91 percent of costs recovered) and insulation upgrades (76 percent of costs recovered). Bathroom renovations and adding a new bathroom yielded the smallest financial return upon resale, recouping approximately 50 percent of project costs.

When it comes to exterior projects, Realtors explained that new roofing will recover 109 percent of costs upon resale, more than any other project in the report. New roofing was also named the exterior project that most appeals to buyers, followed by new vinyl windows, a new garage door and new vinyl siding.

Of course, many homeowners consider a remodeling project to be overwhelming. Thirty-five percent of homeowners in the U.S. said they would rather move than remodel their current home. Owners in urban areas are the least likely to attempt a project, with only 52 percent saying they would be willing to remodel their home, compared to 55 percent in suburban areas and 70 percent for owners in rural areas.

Consumer Sentiment

How are you feeling about the economy and related issues? The University of Michigan's October reading of its Consumer Sentiment survey confirmed the overall confidence level increased to 101.1 from 95.1 in September. "Consumer sentiment surged in early October, reaching its highest level since the start of 2004," said Richard Curtin, Surveys of Consumers chief economist. "The October gain was broadly shared, occurring among all age and income subgroups and across all partisan viewpoints. The data indicate a robust outlook for consumer spending that extends the current expansion to at least mid-2018, which would mark the 2nd longest expansion since the mid-1800's."