As mortgage rates rise, more homeowners are choosing to remain in their homes and renovate. So, as you consult with your customers on potential home improvement projects, and ways to help them maximize the value of one of their largest investments, there are a couple of things to keep in mind. They include:
1. Not all improvement projects yield the same resale value.
2. A traditional home equity loan may not be the best option to fund an improvement project.
Not all improvement projects yield the same resale value.
Recently, REMODELING Magazine released its 2018 Cost vs. Value Report (www.costvsvalue.com). The report lists the projects that contribute most to the resale value of a home. And, it may surprise you to learn that except for the minor kitchen remodel, work done on the exterior of the home generated higher returns than interior renovations.
The highest payback projects this year included the garage-door-replacement job at 98.3%, followed closely by the manufactured stone veneer project at 97.1%. The following home improvement projects came in next with the highest paybacks:
1. Deck Addition (Wood)—82.8%
2. Minor Kitchen Remodel—81.1%
3. Siding Replacement—76.7%
4. Window Replacement (Vinyl)—74.3%
5. Universal Design Bathroom—70.6%
Notice that homeowners don’t have to spend a lot of money to make significant improvements in both curb appeal and long-term worth for their home. So, even though a job may seem small, it can still have an impact for your customer when it comes time to sell.
For the full 2018 Cost vs. Value Report, visit costvsvalue.com.
A traditional home equity loan may not be the best option to fund an improvement project.
When it comes to home improvement financing, a lot of people automatically think of a home equity loan. But, did you know that you could be offering your customers a choice of payment options that don’t take weeks to be approved, and that doesn’t require them to use their home as collateral?
Just think of it, by offering your customer a choice of a Same-As-Cash Loan and a low monthly payment loan option, with either a zero interest or reduced interest rate, you’re giving your customer the flexibility to choose the option that works best for them. And, instead of waiting weeks for an approval, your customer can receive a credit decision within minutes. And, with mortgage rates on the rise, the interest rates on an unsecured loan can be lower than a home equity loan. So, if you haven’t signed up to offer a choice of payment options to your customers, visit our “Contractors Page” page to learn more.