Here's this week's roundup of news and resources.
Find out how much home renovations have boomed.
Protect clients from canceled closings due to appraisal gaps.
Discover the top three real estate blog niches for growing revenue.
This year's renovation ROI leaders.
Learn key expert predictions for this year's real estate market.
Read on for our coverage.
Renovate, Decorate, Repeat
Home renovations and the amount homeowners spend on them have reached their highest point in years, based on a new survey from the remodeling site Houzz.
Specifically, homeowners reported a 20% increase in renovations when compared to 2018. Homeowners with higher budgets accounted for a lot of the increase, as spending grew from $85,000 in 2020 to $100,000 in 2021. The most popular renovations were to interiors, with kitchens, guest baths, and laundry rooms popular choices. More than 50% of homeowners say they will renovate this year while another 46% plan to decorate their homes. In fact, the total budget for décor projects has increased nearly 70% to $15,000, up from $10,000 for the past three years running. 1
Mind the Appraisal Gap
There's a reason many agents love the victorious memes with the phrase "When the appraisal comes in above purchase price." Unfortunately, in today's market, that meme is appearing less and less. One reason is overzealous sellers who price their homes according to headlines that report buyers paying thousands over asking price.
Some sellers don't realize that many buyers will have to bridge the financial gap between the appraisal and their loan. If you're working with a seller who prices their three-bedroom rambler like it's the Taj Mahal, or a buyer offers $100,000 over asking price and the comps don't match up, it may be better to have the appraisal conversation up front than after the closing is canceled. 2
Profitable Real Estate Blog Niches
Real estate blogs are a popular way to grow your online followers, especially if you choose the right topics. Each blog article should convince readers that you've got the smarts and experience to assist them with buying or selling their next home. If you're thinking of prospecting in one or more niche territories, here are some of the most profitable ones for 2022.
The eco-green blog - Environmentally conscious home purchases are on the rise among people who want to reduce their carbon footprint, so if your listings regularly feature eco-friendly homes, consider this niche. As the nation's population continues to grow, downsizing is expected to increase, and properties with lower energy costs will become even more popular.
The relocation blog - Want to reach people relocating to your area for a new job, or students who plan to attend a local college? This blog can provide details that encourage them to check out your listings. These can include cost of living stats, outdoor amenities, unique attractions, and the best restaurants.
The luxury property blog - This can appear to limit your readers to wealthy buyers but think again. While luxury buyers will be attracted to your subject matter, there are plenty of curious surfers who'd love to peek inside your million-dollar listing. They may end up sharing your blog and help increase online traffic. 3
This Year's Renovation ROI Leaders
Homeowners often choose their next remodeling and renovation project with several factors in mind. In addition to improving their home's overall comfort, looks or functionality, many want to choose a project that'll pay off when it's time to sell.
Recent research found that these three improvements provide the highest Return On Investment, or ROI -- and they may surprise you.
Replacing a battered manual garage door with an electric model rewards sellers with up to 93.8% ROI.
Manufactured stone veneer renovations are right behind, with up to 92.1% ROI. Stone veneer can transform a home's exterior or indoor fireplace area.
One of the most popular renovation projects -- kitchens -- comes in third, if it's a minor/midrange project. These come in at around 72.2%. A major renovation may provide more homeowner happiness, but the ROI may be less than a more economical project. 4
Updated Predictions for the 2022 Housing Market
Pending home sales declined 1.2% in March from February, according to the National Association of Realtors (NAR). Lawrence Yun, chief economist for NAR, said that this shows a dip in contract signings which suggests that the bidding war environment may finally be cooling off. He also emphasized that existing home sales for 2022 appear to be down 9% from last year's heated pace. So what's ahead? While Yun is confident that home prices are in no danger of sliding on a nationwide basis, he predicted that price growth will slow, and the median home price will likely be up 8% from 2021. Finally, he noted that high rents will push many renters to consider purchasing a home, but rising rates may be an affordability challenge. 5
Have any questions? Reach out to us. We are your home loan experts and are up to date with all the market industry information. kevnik@kevnikmortgage.com
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Sources:1magazine.realtor; 2nar.realtor; 3realtybiznews.com; 4thebalance.com; 5housingwire.com
