5 Remodeling Projects With the Best Return

Home remodeling is as hot as it's ever been. Here are five projects that bring the best return on investment.

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Home remodeling is hotter than ever. According to researchers at Harvard University, remodeling investment is up 6% over last year, and now makes up a $324 billion market. According to a survey of remodelers and real estate professionals, there are five remodeling projects that offer the best returns: 1. Your kitchen. Kitchen remodeling can be as simple or as elaborate as you like. However, to maximize your return, keep your investment to under 20% of the value of your home—as is recommended by surveyed real estate professionals. The outcome? A whopping 85% return on your investment. 2. Your bathroom. A thorough bath remodeling project can cost up to $20,000. However, not only will it pay for itself, it should give you an added 80% return. 3. Your deck. Replacing your deck can cost you anywhere from a few thousand dollars to tens of thousands of dollars, depending on the size. The expected benefit will be similar to a bathroom remodeling project—around an 80% return for a fresh, new deck.

Some will make more sense for your home than others.

4. Your siding. Fading or worn-out siding can turn off potential buyers before they even step foot in your home. Replacing old siding will make it much easier to sell your home, and in addition, it should give you an 80% return on an investment of around $10,000. 5. Your windows. New windows can mean greater energy efficiency, increased thermal and acoustic comfort, and a more modern look. Homebuyers are well aware of this, and they are willing to pay accordingly. That's why a typical window replacement should yield at least a 70% return on your investment. Clearly, some of them will make more sense for your home than others. If you're considering selling your home, then just one of these projects could add tens of thousands of dollars to the price you'll be able to get. If you have any questions or want additional advice about which remodeling projects make sense for you, give me a call or send me an email. We can discuss all the details and I can give you an accurate estimate of what these projects could be worth. I look forward to hearing from you!

What Does the Fed’s Recent Rate Hike Mean for the Real Estate Market?

The Fed’s recent rate hike shouldn’t have any significant impact on our market. In fact, it might actually stimulate it.

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On June 14th, the Federal Reserve increased its federal funds interest rate by 0.25%. They’re also widely expected to raise rates once or twice more over the course of 2017. What does this mean for the real estate market? While any action by the Fed always garners a lot of attention, I believe these increases will not have any significant impact on our market. First of all, mortgage rates have actually trended lower in the wake of the Fed’s recent announcement. The 30-year mortgage rate recently hit 3.9%, the lowest level in 2017. In fact, it’s a common pattern for the mortgage rate and the Fed rate to move in opposite directions, and the same thing has happened the last two times the Fed raised rates. Second, the economy continues to do well. The Fed decided to increase its rate because unemployment and inflation are low, household spending is picking up, and we’ve seen steady growth for the past nine years. This is good news for the real estate market. As expected, we continue to see strong demand and a corresponding increase in home prices.

These increases will not have any significant impact on our market.

Third, while the Fed’s rate increase is normally meant to cool off the economy, it might actually stimulate it in this case. Because interest rates were so low for such a long period of time, experts believe the recent increases might ease pressure on the financial system and encourage lending. Case in point: since the Fed started raising its rate in December 2016, total mortgages are up 2.5% year over year. In conclusion, while any move by the Fed is likely to lead to a lot of hand-wringing, I believe the real estate market will not be affected and will continue on its own healthy course. Nonetheless, it’s clear that right now is a uniquely good moment for everyone in the real estate market. Today’s low mortgage rates are good for homebuyers because they make homes more affordable. If you have any questions about our market or you’re thinking of buying or selling a home, give me a call at 254-690-4321 or send me an email at Shine@ShineTeam.com. I’d love to help.

Killeen Market Report Stats for August 2016

Killeen’s market statistics are in for August 2016, and I’m happy to report that Killeen is still listed among the most affordable housing in the nation.

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Today I’d like to report the August 2016 market statistics for Killeen. All of our data comes directly from the Multiple Listing Service. Last month we focused only on the city of Parker Heights, and future reports will be from the other surrounding towns and cities.  

In August of this year, 185 homes sold in Killeen, which is an 11% increase over the same time last year. Of those homes, the average sales price was $123,400, with the typical home selling at 99% of the asking price.

Killeen has consistently been listed among the most affordable housing in the nation, and this year is no exception. The average days on market for August was 119 days, which is pretty similar to August of last year when the average days on market was 116.

Killeen is still among the most affordable places to live in the nation.

The average sales price in Killeen has dropped 1.7% since last year, from about $130,000 down to $127,600. The median sales price stayed almost the same, at about $200,000, and there was an 8.9% increase in total homes sold during these months, from 1,199 homes to 1,306. The average days on the market this past year was 123 days and 38% of sold homes sold the first 90 days as well.

VA financing remains the most popular form of financing, accounting for 56% of the loans taken out. Interestingly, 16% of those sales were cash transactions, which is very strong for this area.

So far this year, Killeen homes have continued to sell for about 98% of the asking price. I am also amazed to learn that 60% of these homes have sold with the first agent that they were listed with.

If you’re interested in stacking the odds in your favor by listing your home with an agent from the Jean Shine Team or you know somebody that is, feel free to give me a call or send me an email. We are already preparing homes for the coming winter and fall months and we’d be happy to help you!