Buying Or Renovating Existing Homes: Destiny Homes helps Homeowners Make Informed Decisions
In a welcome signal of a burgeoning housing recovery in U.S. housing markets, the number of homeowners choosing to renovate their homes is increasing.
Homeowner Options To Build Or Renovate
The lack of housing supply and the up-tick if home buyers bidding in multiple offer situations, in the Minneapolis housing market, has some homeowners turning to the option of building a new home or embarking on a renovation of their existing home. Home Remodeler Of The year 2010 Liz Sprenger and husband Butch Sprenger, owners of Destiny Homes, design full house makeovers that often pay for themselves through a comparable increase in the home’s value.
"We are hearing also, that new home buyers are not really looking at the foreclosure market—the houses are either not in good neighborhoods or the house is in bad condition and needs a lot of updates," noted Paul Miller, an analyst at FBR. "So home buyers are either going to newly constructed homes or being very picky with the type and shape of the house. We are hearing from plenty of mortgage brokers that they are working with many couples, and they just can't find the perfect house." According to Miller's statement in Home Buyers Are Back, but Where Are the Houses? on CNBC March 1st, the lack of quality housing inventory is pulling buyers toward building or renovating their existing home.
Move-Up Home Buyers Face Multiple Offers When Bidding
More than seven in 10 move-up buyers said they had faced a competing offer when making an offer for a home, according to a survey by Redfin. Given those experiences, perhaps it isn’t surprising that 58% of buyers said they think Twin Cities home prices will increase, up from 34% last quarter. The lack of supply of Minneapolis housing inventory and the up-tick in multiple offer situations is surprising to many home buyers. More than one-quarter of buyers said they would stand back from the market if prices went up or they were in a multiple-offer situation, while 10% of respondents said they’d do what it takes to win a competitive bid.
Homeowners Are Renovating Their Existing Home More Often
Some sellers may be reluctant to put their homes on the market because it typically requires them, in turn, to purchase a home. More Eden Prairie, Wayzata, Minnetonka area residents are consider building their next home or renovating their existing home. When the selection is slim and the perfect home to buy can't be found, homeowners who consider all their options for the quality home life they are seeking, find staying put and renovating their home a viable choice.
Economic Benefits From Building And Selling New Homes
"Stockpiles of unsold homes remains thin, regardless of the strength of sales. Given widespread economic benefits from the building and sale of new homes, that's generally good news for the economy, since more will need to be built," according to HSH Market Trends.
QUESTIONS TO ASK TO HELP DETERMINE IF IT IS BETTER TO BUY OR RENOVATE AN EXISTING HOME
Is The Home A Good Candidate For A Renovation?
If dreams to renovate include increasing the footprint of a home, how big the lot is may help determine whether it's better to move or remodel. Home builders are familiar with city ordinances that come in to play when considering an expansion at ground level, or present options to add a second story. Turning a home into a two-story, from a one story fits some structures well and for other homes the structural changes may be cost prohibitive. When considering making any additions to a home, a licensed contractor will easily determine how or if a home addition should be done if near a septic tank or well.
The Existing Home's Location
Do you love living in your neighborhood? - Much of a home's value depends on its location. Already owning a home in a highly desirable location is one good reason to pass on being a move-up home buyer, to remain in place and renovate. Raising children in the same school district, living near great neighbors, or already having an ideal commute to the office are all worthy reasons to renovate an existing home.
Weighing Moving Costs Vs Renovating Costs
Obtaining answers before drawing conclusions will help establish a more realistic perspective of the financial side of determining whether it is better to buy another home or renovate an existing home. Factors vary with each situation. Shipping household goods if moving a great distance may add up, buying new window treatments and furnishing for the new house, and more expensive daily commutes to work are best tabulated ahead of time. Additional costs of fixing up an existing home in order to sell it need to be figured in too. Higher utility costs, insurance cost differences, and higher property taxes may come into play with either expanding your existing home's square footage or moving to a bigger home.
Be Realistic About Today's Market
Timing can be everything. Know what current home values are. Know what current remodeling trends are. Make home improvements that are typical for the neighborhood. As your home builder all your questions to make better informed decisions.
Acknowledge Your Financial Investment
If you plan to sell your current house and relocate within a few years, a major home renovation may not be the right expenditure of your time and funds. It may be unrealistic to recover costs in such a short time frame. For a major home renovation, the architecture design, permit, and construction process often takes more than a year. Are you willing to invest that much time and effort? Research from the start how much money would be appropriate to invest in renovating the house. Read more about home remodeling projects that hold their value.
Consider The Length Of Time You Wish To Stay In A Home
Consider current value of property without improvements you envision, and what would it be once they are in place? If the renovation project would level your property to comparable houses in the neighborhood, then renovation is probably a a great investment. If the renovation would make your house the most expensive one on the block, you might consider scaling the renovation project proportionately. Bank financing could also be more difficult. If you love living in your current home, and plan to stay in the house at least seven - ten years, an extensive home renovation to realize its full potential will pay off in terms of enjoyment and financially. Remodeling investments in a home to meet family needs is all many homeowners truly focus on.
Write Out Your List Of Desired Renovations
On of the best way to assess the feasibility of home improvement projects is to hire an architect. Destiny Homes specializes in home renovations. We love to solve problems and see a family enjoy their home more. In preparation, outline the existing problems and inadequacies of your house, and your "wish list" of what you would like it to be. We can scope the work, and answer the questions you want to ask a home builder.
Home buyers and investors seem all the wiser from experiencing the U.S. recent housing ups and downs, following housing data closely to make buy, hold and renovate decisions.
"Overall, the fundamentals of housing demand appear to be improving. The intersection of price and mortgage cost which constitutes affordability is strong. The desirability of owning a home seems to us to be returning to the market, with potential buyers perhaps more pragmatic and clear-eyed about the risks and rewards of homeownership than those who engaged the market during the height of the frenzy in the last decade," ~ HSH
Contact Destiny Homes for any questions you may have. We help homeowners consider their better options and prioritize their personal preferences to create the home of their dreams. Homeowners in the Minneapolis and surrounding area residential real estate communities ready to build or renovate their homes may reach either Butch or Liz by calling 952-934-5706.
Butch and Liz Sprenger, owners of Destiny Homes Remodeling And Renovation Services Home page: www.destiny-homes.com. Service the entire Twin Cites Metro, from our main office in Deephaven, MN working as home Remodeler and owner of Destiny Homes.