Florida Home Loan Purchases Slow; Renovation, Remodeling Remain Strong

As demand for new houses and Florida home loans slows down, one result is that a majority of home owners are choosing to remain in their current abodes. They just wish to fix them up a bit. Therefore, the home renovation is actually growing stronger within this scenario.

According to the Home Improvement Research Institute, those who have lived in a house for two years or less spend an average of $2,300 yearly on it. The longer people stay, the less they spend each year - $2,000 annually on average in years three through five and just $1,700 annually after 10 years.

HIRI surveyed 600 new home buyers and 600 existing home buyers, finding that most movers did at least one improvement project soon after they moved in. The main projects involved landscaping. (Residential builders often give new buyers an allowance to spend on their own landscaping rather than putting in a standard lawn package to start with.) After the yard, decks and patios were the second most popular project for new home buyers.

For many home buyers, remodeling work gets done on both ends of the deal, in preparation for the sale of a previous home as well as the remaking of the new house. Half of all sellers undertake some sort of renovation project, with 61% of those working before they even list the house for sale, 24% adding a project while the home is listed but prior to having an offer, and 12% having to make repairs or upgrades after an offer is made.

Kitchens, baths and bedrooms were the most popular targets of revamps for sellers, with painting and flooring the most common projects.

“House appeal” was listed as the No. 1 reason those surveyed by HIRI decided to remodel. But the survey didn’t distinguish whether the appeal was to the current occupants or to future buyers, or both. But the fact is, many homeowners today take investment value into account when considering any major home makeover.

“Home remodeling is the best way to protect what is for many their largest investment,” said Vince Butler, chairman of the National Association of Home Builders Remodelors Council, a trade group.

If you’re looking to sell and wish to elicit the highest Florida home loan offer, the group offers these tips for making investment-wise remodeling decisions:

• When searching for project ideas, look at amenities of other homes in the neighborhood. Building an addition may not be a sound investment if yours is the first on the block, yet it would be very wise to add should all the neighbors have one.
• Kitchens and bathrooms still count. These rooms are consistently rated the best places to spend your remodeling dollars. Potential buyers often look their first.
• One of the cheapest and easiest ways to add value is through a fresh coat of paint, breathing new life into a room for just a little money and some elbow grease.
• The exterior is your home’s first impression, so be certain that siding, paint, landscaping and any other outside areas look acceptable. Otherwise, you may not receive the Florida home mortgage loans that you were hoping for.

Good luck to all fixer-uppers. Whether you’d like your residence to look better for your own sake or for the next Florida home loan owner, these tips should help.