To Renovate or Not to Renovate? Tips for Homeowners and Home Buyers

Not sure whether or not to renovate your home? Thinking about buying a home, but waiting for the right time? Read on for tips on navigating today's struggling real estate market.

Take Advantage, but Cautiously
Market experts have issued a warning, reporting that the cost of investment is not always recouped. Florida realtor, Cindy Kelley, says that today's market has no real pattern, so any move could be a risky one.

Many realtors still agree, however, that now is the time to buy. Housing prices continue to fall, and fixed-rate mortgages have fallen to around 5.5 percent.

How Much is Too Much?
Experts suggest not spending more than 28 percent of your taxable income on your mortgage payment. If you already own a home and are considering a home improvement, this is a good conservative benchmark. Business Week reported that the median price of a home has dropped to $191,600, its lowest point in more than four years. For new home buyers, choosing a loan with some extra room for home improvement can be a good solution for making a good house into a great one.

If you already own your home, and have some room between your current mortgage payment and that 28 percent mark, it may be a good time to invest in your home through home improvement.

Home Improvement Can Improve Your Home's Marketability
As homeowners, real estate companies, and banks strive to make their homes more marketable in a still-struggling real estate market and bleak economy, many are still choosing to invest in home renovations.

Some real estate writers suggest making this choice, as it can help decrease the time your home is on the market. At a time when there is less work to go around, there is also a greater opportunity for negotiations with contractors and home improvement services.

Sources
BusinessWeek, It's Time to Buy That House
Examiner.com, Home renovations; are they worth the cost in a down market?
Florida.com, Real estate: Sellers finding prices 'hard pill to swallow'
WJHG.com, Analysts Believe Now is Prime-Time to Buy a House