Recent research indicates that most home prices are overvalued, and experts predict home values will peak this year and then drop.
So what can you do to protect the investment you’ve made in your home? Think about new siding.
In today’s market, siding is one of the few home improvement projects that still provides a decent return on your investment. Each year the real estate industry publishes a report on how specific home improvement projects have performed in terms of cost to value. Exterior remodeling projects have historically dominated that list, and siding (especially fiber cement and quality vinyl siding) continue to make the top 10.
Changing Numbers on Return on Investment for Home Improvement
Although return on investment numbers fluctuates, many home improvement project generally have been bringing in a lower ROI within the past 10 years.
If you do the math, it is a huge 30% difference in just six years. This can translate into tens of thousands of dollars that is lost to today’s homeowners.
In the year of 2009 the actual value of home improvements began its downward decline, and then it was interrupted in 2014 by a slight increase that again was followed by another decline. The culprit for this decrease in value is in fact the rising cost of the renovations itself.
The U.S. free market economy does affect a very wide range of industries, and home improvements and real estate are two industries that it hits hard. The rising value of many homes has given homeowners a new source of cash in the form of ballooning home equity. Many of these homeowners have chosen to use this newly found cash fund to remodel their homes. Increased demand has produced cost increases for building materials. Keep in mind that the rising cost of materials for these home remodeling projects brings with it an increased cost of the home improvement project itself.
Home Remodeling Values: What You See Is What You Get
Many believe that exterior projects are far less affected by the market fluctuations due to the fact that they are more visible. Think about this – can a person see your new granite counter top from the outside of your home? When comparing home values, it is all about curb appeal. Curb appeal has a very large influence over perception of a property’s value. Of course if a person is on the hunt for a new home they will see those new counter tops when they enter, but it is what the outside of your home looks like that will get them to the inside.
This is the reason why it is very critical for the exterior of your home to look as impeccable as the inside. Preserving your home’s value is important, whether you’re thinking about selling this year or many years in the future. One of the best ways to do that is to have quality siding installed. Not only will it help enhance your home’s value, but it will also protect your home’s physical structure. Plus you get the added perk of having an attractive home!
Make sure to give us a call when you’d like to see changes made to the outside of your home. We install a number of siding products that deliver well in terms of return on investment as well as other factors.
Window Outfitters, Inc. is a licensed MN home remodeling contractor. Our name says ‘windows,’ but we offer siding installation in the Minneapolis area, and a whole lot more.
Window Outfitters is a premier Window Replacement, doors, siding contractor and installer. As Contractor in the St Paul, Minneapolis, (Twin Cities) Minnesota (MN) metro, we proudly serve, but are not limited to, the following areas: Minneapolis Energy Efficient Vinyl Windows, Replacement Window Contractors Minnesota, Burnsville, Apple Valley, Lakeville, Savage, Bloomington, Edina, Richfield, Eagan, St Paul, Hastings, Minnetonka, Plymouth, Maple Grove, Eden Prairie, Farmington MN, Chaska, Shakopee, Chanhassen, Victoria, Mendota Heights Anderson Windows Minneapolis, Marvin Windows Minneapolis.
