Survey Finds Primary Reason People are Borrowing for Home Improvement is to Increase Property Value
Bank of America recently commissioned a survey done by MARC Research on the reason for people taking out home improvement loans. 60% of those surveyed claim that their goal is to increase the home’s value.
The survey also showed that 56% of homeowner’s did major home improvements prior to putting the home on the market for sale.
“In today’s real estate market, homeowners not only want to modernize their living space, but also ensure that the improvement made to the property is a solid investment in the home’s value,” said national home improvement expert Danny Lipford. “There is no better or smarter investment than increasing the equity in one’s home by choosing smart home improvement projects that will likely increase the value of one’s home.”
The survey also revealed that when it comes to home improvement projects, potential sellers and buyers aren’t always attracted to the same projects.
The most appealing home improvements among potential buyers include:
- Energy efficient changes (81 percent)
- Remodeled kitchen or bathroom (78 percent)
- New roof (69 percent)
The most common home improvements made before selling a home include:
- Landscape or garden design (36 percent)
- Remodeling kitchen and remodeling or adding bathroom (27 percent)
- Replacing or fixing roof (33 percent)
Apparently aside from bathroom or kitchen remodeling, the seller’s and buyer’s desires are not in alignment. Also, many home sellers were unsure of the additional home value they would receive from doing the home improvements.
Top Home Improvement Projects That Provide the Greatest Return at Resale
Project Value Cost of Project Added Home
Siding Replacement $10,393 $10,771
Bathroom Remodel $10,499 $10,727
Home Improvement Projects That Provide the Least Return at Resale
Project Value Cost of Project Added Home
(1)Master Suite - Upscale $137,891 $110,215
Home Office Remodel $13,143 $9,569
The study also asked the means of financing used to improve the home. Almost 1/3rd of respondents used a Home Equity Line of Credit. “Making an investment toward your home is important in today’s housing market,” says David Rupp, Home Equity Executive at Bank of America. “From the survey we conducted, we know that nearly nine in ten homeowners have made a major home improvement and one in ten is planning to do it,” continued Rupp.
“Customers should know that with the availability of our competitive offerings, a home equity line of credit is often the best method of financing these projects.”
Bank of America created a flexible home equity line of credit that helps consumers leverage the equity in their home to improve their financial position, build wealth through homeownership and cost-effectively prepare consumers for unexpected expenses. Consumers can apply for the low cost home equity line of credit anywhere Bank of America products and services are available.
To speak with a Bank of America Account Executive, visit online at http://ae.bankofamerica.com/kenstampe