Are Homeowners Renovating to Sell or to Stay?

ERA Justin Realtor agent Clemenza Goglucci suggested, "Over the past few years, two trends have emerged in the housing market. Home renovations have increased and inventory of homes available for sale on the market has lessened to a degree.  A normal ’housing market is defined by having a 6-month supply of homes for sale. According to a recent Existing Home Sales Report from the National Association of Realtors, we are currently at a 4.4-month supply.  This lower inventory environment has many current homeowners worried that they would be unable to find a house to buy if they were to list and sell their current house, which is causing some homeowners to consider a renovation to fit their needs. This is basically unbalanced as new listings do come on the market daily.

According to Home Advisor, homeowners spent an estimated $6,649 on home improvements over the last 12 months. If that number seems high, it also includes homeowners who recently bought fixer-uppers. One study asked the question, “Given a choice between spending a fixed amount of money on a down payment for a new house  or fixing up their current home, what would you do?”

Some of those surveyed said that they might consider a renovation of their current house. Especially if their current house fits their needs as far as space and accessibility are concerned, then a renovation could make some sense. But if renovations will end up changing the identity of the home and impact resale value, then the renovations may end up costing them more in the long run and a new purchase could be the best option."

Clemenza concluded, "With home prices increasing steadily for the last 6.5 years, homeowners have naturally gained equity that they may not even be aware of. Listing your house for sale in this environment could net you more money than your renovations otherwise would.  If you are one of the many homeowners thinking about remodeling instead of selling, let’s get together to help you make the right decision for you based on the demand for your house in today’s market."

BEST 2018 DOLLAR-FOR-DOLLAR IMPROVEMENT BENEFITS

BEST 2018 DOLLAR-FOR-DOLLAR IMPROVEMENT BENEFITS

It would be nice if you could count on getting one dollar back when you sell your house for each dollar you invested in renovations. Most people hope for more than a dollar-for-dollar return. In reality, many improvements return more or less.

For example, in a past Cost Versus Value Report, published by the National Association of Realtors, as reported by Inman News, nationally, the average percent recouped on a bathroom remodel was  90.1 percent. It was 88.1 percent for a deck addition, 81.2 percent for a family room addition, and 79.4 percent for a major kitchen remodel.

“It's important to do due diligence investigations before embarking on a remodel project, just as you would if you were considering buying a new home. There are many variables to consider,” stated Teresa Kriston, Realtor agent with ERA Justin Realty Co.

“Consider that the figures quoted are national averages. The amount recouped on a remodel depends in large part on where you live. There's significant variability from one city to the next, according to the NAR report.  For instance, nationally, homeowners recouped possibly 90 percent on a bathroom remodel. But, the amount recouped for the same job was 109.7 percent in New York City, 100 percent in San Francisco on average.  The return on a remodeling investment will also depend on the value of your home, particularly in relationship to the value of homes in your neighborhood. If you have a small home in a neighborhood of larger, more expensive homes, you could come out ahead by enlarging your home. However, it's important to keep costs in line so that you don't end up over-improving your home for the neighborhood. Buyers tend to discount a home that's priced above the value of other homes in the neighborhood. In areas where home prices are stable, you're likely to recoup more on your remodel investment than you would during times of meager appreciation.

There's a subjective factor that can't be overlooked when remodeling. This factor is often referred to as pride of ownership, but don't discount the value of creature comfort. There's a certain sense of well being to be derived from a home that suits your lifestyle while aptly reflecting who you are. Despite these factors, from an investment standpoint, it makes sense to consider resale value before making an investment in a major renovation. This doesn't mean that you should remodel your home with someone else in mind. But, if your aim is to recoup as much of your investment as possible, it's wise to consider homebuyer preferences in your area. Also keep in mind that while trends change, quality and good taste are timeless.  The NAR Cost Versus Value Report was based on professional judgment rather than on actual sales data. Therefore, the report is somewhat subjective. However, it does point out the importance of carefully considering before remodeling.”

Teresa concluded, “At ERA Justin Realty the words, ‘There is a difference in real estate companies’ is more than a phrase.  We live it every day.  Because of our daily priorities, we proudly received the prestigious ERA worldwide  ‘Commitment to Excellence Award.’ For these reasons ERA Justin Realty has been selected by thousands of buyers and sellers as their Realtor of choice during its 68 years of operation.”

ERA Justin sponsors a tree at the Kip Center 24th Annual Festival of Trees and Wreaths

ERA Justin’s Little Elves have been very busy decorating a tree for 55 Kip Center’s 24th Annual Festival of Trees and Wreaths which began Tuesday, November 13^th and runs through December 8^th. A favorite tradition in the community, the Festival, which is a fundraiser for the Center, is the perfect venue to enjoy a beautiful holiday display of trees, wreaths, and centerpieces that are decorated by local individuals, organizations and businesses. You can also support this event with a $25 “Angel” donation and can purchase raffle tickets at 25 for $10. You might even win a beautiful tree, wreath or centerpiece.

Trees/Wreaths/Centerpieces will be on display at the Center until Saturday, Dec. 8th at which time they will be raffled off to benefit the  55 Kip Center. The Center will hold an Open House as part of the Borough’s Holiday Festivities from 11:00 until 3:00 p.m on Saturday November 24^th and will be open Tuesday – Saturday until December 8 to view the display and purchase raffle tickets.

In past years, ERA Justin Realty has donated a wreath, but this year the Justin staff has decorated a beautiful tree with the theme “The Twelve Days of Christmas”. Under the tree are 12 gift boxes containing gift cards to local restaurants. The ERA Justin tree was voted “Most Beautiful Tree” by the Kip Center judges.

ERA Justin Realty is pleased to help 55 Kip Center, a fun, empowering, and enriching vital resource for older adults and their families. They are Bergen County's ONLY nationally accredited Senior Center of Excellence and have a membership of over 700 members. They offer Health & Wellness, Education, Recreation, Fitness and nutrition programs to area seniors Volunteers also provide escort for essential transportation needs including doctor appointments and grocery shopping. Volunteers can also provide food shopping for those unable to shop for themselves. A little of your time can make a BIG difference in the life of a senior in Bergen County! For more information on this program or to become a volunteer, please call Cathy Baviello of 55 Kip Center at 201-460-1600. 

Still Think You Need 15-20% Down to Buy a Home? Think Again!

Still Think You Need 15-20% Down to Buy a Home? Think Again!

ERA Justin Realtor agent and management administrator Michelle Korosy points out directions for home ownership. "According to a new study from Urban Institute, there are over 19 million millennials in 31 cities who are not only ready and willing to become homeowners but are able to as well!  Now that the largest generation since baby boomers has aged into prime home buying age, there will no doubt be an uptick in the national homeownership rate. The study from Urban Institute revealed that nearly a quarter of this generation has the credit and income needed to purchase a home. Surprisingly, the largest share of mortgage-ready millennials lives in expensive coastal cities. These cities often attract highly skilled workers who demand higher salaries for their expertise."

ERA Justin Realty Broker-Owner Jennifer Darby Metzger commented, "So, what’s holding these mortgage-ready millennials back from buying? Myths About Down Payment Requirements!  According to the Keeping Current Matters, Inc. news reporting service, Most of the millennials surveyed for the study believe that they need at least a 15% down payment in order to buy a home when, in reality, the median down payment in the US in 2017 was just 5%, and some programs for qualified buyers are available for even lower down payments! The study goes on to point out that despite limited awareness, many states have programs that provide grants and loans to make homeownership more attainable, with varying assistance in various states ranging up to $21,171."

Michelle concluded,  "The bottom line with so many qualified young families now able to buy a home in today’s market, the demand for housing may continue for years to come. If you are one of the many millennials who have questions about their ability to buy in today’s market, let’s get together so we can assist you along your journey! You should conduct your own research and due diligence and obtain professional advice before making any investment decision. Housing is still affordable in the United States."