When it comes to home ownership the remodeling trends of the recent past appear to have changed. These changes are showing up in the Central Texas housing market as well as other markets . The recent recession has left a permeating lifestyle change, one that has swapped over-indulgence with down-to-earth necessity. In other words, if it isn’t a necessity many people won’t do it.
It is a buyer’s market out there which means that the buyer is in control. Though in some of the Austin, Texas neighborhoods, the resale homes inventory is so well balanced that buyers barely have an advantage. A seller can no longer pass off a roof in poor condition or a faulty wiring system. If a homeowner wants to sell he will either have to make necessary repairs to his home or credit the buyer at closing. Even if the seller has realistically priced his home for it’s condition and acknowledged the market valuations for his neighborhood, many buyers are still able to negotiate a reasonable discount off of the list price.
Remodeling is on the upswing and for the first year since the height of the real estate market, the amount of money spent on remodeling is expected to increase. The only difference is what kind of remodeling is occurring, in other words if it needs fixing it is going to be fixed. Savvy sellers are recognizing that condition does matter to buyers and the better maintained, well groomed home is more likely to win in the resale beauty contest. In the Austin market, selling homeowners will brag about the green improvements such as the appliances with better energy star ratings, double paned window replacements , insulation and siding upgrades, tankless hot water heaters all in the name of energy efficiency because it has finally become a necessity to homeowners.
The days of bigger and better have passed, being replaced with the motto of living within one’s means and embracing the basics, and real estate is no exception to this rule.
Click here to read a recent article from the Wall Street Journal regarding the current state of remodeling.