Renovating doesn’t pay off like it used to
By Les Christie, Staff Writer
NEW YORK (CNNMoney.com) — Home remodelers are getting less bang for their bucks. For the fourth straight year, renovation jobs have added less to resale values relative to their costs, according to an annual Remodeling Cost vs. Value Report released this week by the National Association of Realtors.
The average remodeling job cost $50,908 in 2009 and added $32,497 to the value of the home, a ratio of 63.8%. That was down from a cost-to-value ratio of 67.3% in 2008, when the average was $49,866 and the added value was $33,568.
The average home price is forecast to plummet over the next two years. But these 7 cities are predicted to post gains.
First let‚Äôs deal with this past year and the GPS¬Æ (Goal Plan Systems) we had in place and how it has all changed.
As many of you know, I typically get most of my deals from Top REO Brokers and agents I’ve developed relationships with along the way. Now, don’t get me wrong. That does not mean I exclude anybody who calls me with a decent deal; I will look at anything and everything that comes across my desk.
But let‚Äôs face it — most of my deals come as a result of answering my cell or office phone and after a brief one-sided conversation (usually the REO agent giving me the details on a specific deal) I respond with a simple and quick thumbs up or down; that‚Äôs it!