Ideal Location, or Bigger House?

In Denver’s competitive marketplace, you may not have the luxury of pondering whether to choose the house you fall in love with in a less-than-ideal neighborhood, or the less-than-ideal house in a neighborhood you love. That said, choosing between two such options is a common dilemma among house hunters, and it is worth considering what you might do, if presented with this situation.

A few factors to consider regarding location: 

A popular location will hold up the value of homes in the neighborhood, staying stronger if the market takes a downward turn, and likely providing higher than average returns when the market rises.

In a sluggish marketplace, a house in a sought after neighborhood will sell in less time.

When thinking long term, it is not just the size and layout of the house, but amenities nearby that matter. If you have young children or a growing family, no matter how many bedrooms or the size of the yard, you’ll want to be in a good school district.

Thoughts on prioritizing the house:

When a Realtor says, “Location, location, location,” it’s because he or she knows you can update a house, but you can’t do much to fix a less than stellar neighborhood.

If you do settle for less house in the neighborhood you really want (think smaller yard, fewer bedrooms, or less square footage), you will be able to maximize the benefits of living near mass transit or your favorite grocery store, or being within walking distance of a great local park.

On the flip side, you will pay a premium for a stellar location — even if the house isn’t the best the neighborhood has to offer.

Are you wondering whether to max out your next house, or invest in a neighborhood that will pay dividends when it’s time to move on? I’ve been helping home Buyers & Sellers find the right home, in the right neighborhood, for 28 years, and I know Denver Metro.

Give me a call or drop me a line — I’d love to help you explore the possibilities for you in Denver Real Estate.

Jack Meyers
jackestate@aol.com
303.263.3050
Twitter: @jackestate

Advertisements

Thinking Renovation? Plan Ahead for Maximum ROI

Home appreciation is happening at an exciting pace, and housing inventory across Denver continues to be limited. Because of these factors, some homeowners are choosing to remodel and renovate their current homes in advance of moving, to further increase the value of their investment in the midst of this hot marketplace. Many homeowners choose to remodel believing their improvements will increase the resale value of their home. While this is often true, certain types of renovations have greater impact on home values than others.

Harvard’s Joint Center for Housing Studies expects remodeling spending to reach $340 billion in 2018, up 7.5% year-over-year. According to Remodeling magazine, homeowners choosing to perform high-end interior remodels will see less of a return on investment than those who perform exterior practical remodels.

On average, homeowners who undertake an interior remodelling project will see an average return on investment of 56% of the cost of the remodel; as an example, if you complete a $10,000 iterior project, you can reasonably expect to see a sales price increase of $5,600 based on that expenditure.

Exterior improvements are worth even more. Homeowners who upgrade their homes with new garage doors or windows will see an average payback of 75% of the cost of the remodel. Some of the most profitable exterior changes include garage door replacement, wood deck additions, and manufactured stone veneer installations.

Minor kitchen remodels like updating appliances can earn a whopping 81% return, while major high-end kitchen remodels will yield just 59%. Design tastes differ, but almost everyone will appreciate new appliances and fixtures that are energy efficient or improve functionality.

Before undertaking any remodeling projects, consult a real estate professional. I’m happy to help you think through which improvements to make for a short term sale, or for long term planning. If you’re going to invest in your home, there are better choices than others, and it pays to be informed.

Give me a buzz!

Jack Meyers
jackestate@aol.com 
303.263.3050
Twitter: @jackestate