For the second consecutive year, research data shows that the value of remodeling is up for all 35 projects included in a recent survey. This trend signals an end to the long slide in the cost-value ratio, which began to fall in 2006 and didn’t begin to rebound until last year. For 2014, the cost-value ratio stands at 66.1%, a jump of 5.5 points over last year and the largest increase since 2005, when the ratio jumped 6.1 points to reach its high of 86.7%. -source: remodeling, hanley-wood

Remodeling Magazine produces the Annual Cost vs. Value Report to help homeowners see the value in making home improvements that will improve the resale value of their home. The report breaks down projects by type and scale, as well as by region and city. An itemized breakdown shows an average cost of window replacements is vastly different in Burlington, VT than in San Francisco – likewise, so is the estimated value of those repairs at time of resale.

What are some of the projects you have planned?

Use this Remodeling Magazine: Home Remodeling calculator to estimate costs & value of your next project.

When attempting to calculate your home’s value, you must take into consideration the following:

1. Your home’s current condition – Is it up to code?
2. Your location and it’s current market
3. The size of your home and the lot that it is on
4. How old your home is
5. Your home’s local competition (other houses for sale in your area)

Once you’ve taken into consideration all of these factors, you should begin to look at how much similar houses in your area are being sold for or how much they were recently sold for. This can give you a ballpark figure of how much your home is worth.

It is recommended that you hire a professional appraiser to come and appraise your home. You are guaranteed to get the actual price your home can be sold for and not some fantasy number. You can also use a home value calculator as well, but again, it may not be as accurate to your local area.

Want to increase your chances of buying a home below current real estate value? Just look for a seller who didn’t listen to his agent.

The best real estate agents encourage their sellers to do whatever it takes to get the home in its absolute best condition before going to market. The better the home shows, the more likely the seller will get top dollar.

Sometimes, this could be as simple as removing personal items or decluttering. Other times, an agent will suggest bigger fixes, such as painting, replacing carpet or upgrading countertops or cabinets. Savvy sellers listen to their agents, make the changes suggested and go to market in top form. That’s not always how it plays out, however.

For any number of reasons, many sellers protest suggested fixes. Either they don’t want to be inconvenienced, don’t believe the fixes will matter or don’t have the financial resources to make it happen. Inevitably, this means the buyer will get a discount on that property.

Source: Zillow.com