Are you planning to undertake some pricey home renovations in 2018? Americans should expect to make back only about 56% of the money they spend on renovations. That’s down from 64% the previous two years. What gives? Real estate professionals think we’re getting close to a peak in market prices. So consequently, spending a lot of money does not automatically mean your house will just ride the escalator up and be worth a lot more. New tax laws curtailing the deductibility of mortgage interest and local property taxes might be dampening real estate agents’ confidence that piling on the improvements will pay off. Plus, recent natural disasters have created what Webb calls “a freight train of extraordinary demand” on materials and labor that is bound to jack up renovation costs all round, leading to thinner margins on their return.
This chart shows cost of renovation, value at resale, and percentage you’ll recoup.
Information about home renovations courtesy of The Seay Group Realty, dedicated to service and exceeding your expectations. Call us today!