Buyers are hit hard by first impressions, and sellers take advantage of this fact, aiming to amp up their curb appeal.

Curb Appeal Projects Remain Cost-Effective

by Carla Hill

This is, after all, where they get the most bang for their buck. According to the latest Remodeling Cost vs. Value Report, the National Association of REALTORS® (NAR) reports that "nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects." These exterior projects are outperforming their remodeling counterparts.


Interior projects should not be forgotten, however. These spaces earn returns on costs, as well. Many times interior updates can make you stand out from the competition in your area. It is simply that in today's economy, "remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions." (NAR)

With curb appeal projects, however, a little money can go a long way. Topping the list? Steel entry doors are returning 102.1 percent of their cost upon resale.

What other projects are sellers tackling? While most projects don't bring the profit returns of steel entry doors, sellers have some other great options for attracting buyers.

• Siding and window replacements - 70 or more percent of costs recouped

• Midrange garage door replacement - 83.9 percent of costs recouped

• Upscale fiber-cement siding replacement - 80 percent of cost recouped

• Wood deck additions - 72.8 percent of costs recouped

“It’s important to remember that the resale value of a particular improvement project depends on several factors,” says National Association of Realtors® President Ron Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value."

Yet, says Phipps, "Curb appeal remains king – it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership."

Published: December 21, 2010

Could rising mortgage rates spur housing

Mortgage rates have been rising ever since November 2010, when lows of 4.42% were reported. Bankrate.com recently reported a rise to 5.02% in 30-year fixed rate loans, which is the second time in three weeks rates have crossed the 5% mark--many experts say signaling the end to the 4% mortgage rate era.


Forecasters predict mortgage rates to hover in the 5-6% range in 2011.Yet, some industry experts say the rise in mortgage rates may stimulate a sluggish housing market.

The rising rates create an urgency for potential buyers. They'll have more incentive to buy soon before mortgage rates go any higher. After all, higher interest rates mean buyers will pay more for their mortgages.

Greg McBride, chief economist at Bankrate.com, told CNNMoney.com that when rates rise 4.25% to 5%, it takes away 9% of the purchasing power of buyers.

Lawrence Yun, chief economist of the National Association of REALTORS, doesn't foresee a moderate hike in mortgage rates as a negative for the industry. Instead, he says the real mortgage challenge is getting lenders to approve creditworthy buyers for a loan.

"It's less about rates than it is about underwriting standards...If lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy," Yun said.

Source: NAR