Home Improvement Projects: Maximizing Your Investment

It is widely accepted that in this area, with our frigid winters, adding a pool is generally not something that will increase the value of a home. Neither, according to to Remodeling Magazine’s Cost vs Value Report, does adding a sunroom. Of course, if the benefit of hosting never-ending pool parties on hot summer days is important to the homeowner, these projects can be well worth the cost.

But there are plenty of other home improvements that can both appeal to the owner and add to the resale value of the home. In the Boston area projects that add the most value are a minor kitchen remodel, which retains an average of 89% of its cost at resale, a wood deck and upscale siding, both recouping 86%, and installing a new steel entry door, which retains 81% of its cost. Interestingly, the report showed that a midrange basement finishing project would only preserve 62% of its value. However sales seem to show that a basement finished to the point that it adds livable square footage to an otherwise small home can be an excellent investment.

The averages are very useful, but in deciding whether a project is worth the expense, there are more specific considerations. Improving a home to make it similar in size and condition to others in the neighborhood will generally provide a very good return on investment, and will help it sell more quickly. If a property is in terrible condition and renovated to meet or slightly exceed the standards of the neighborhood, the renovations can easily bring more than their full cost to the value of the house.

However, overimproving and adding high end features to a starter home that buyers in a particular price range don’t expect will not increase the value of the home by the amount spent on renovations. Making a remodeling project too personal can also do more to turn off future buyers than appeal to them. If a home already has a reasonably modern, neutral kitchen, for example, installing expensive custom hardware or a stainless steel backsplash may look great, but should not be done as an investment in the value of the home.

Whatever spring or summer project you may decide to undertake, it’s important to do your research and make selections carefully. Always get several prices and ask contractors for references and examples of their work. Finally, be sure to get everything in writing, and then, having done all your homework, enjoy either the results or a fast sale of your home!

Price Per Foot By Town: 2013

2013 Average sale prices per square foot for Metrowest and surrounding towns:

Marlborough $166

Medway $179

Ashland $189

Millis $193

Framingham $195

Holliston $198

Hopkinton $204

Southborough $212

Walpole $214

Sudbury $233

Sherborn $238

Norwood $244

Medfield $251

Natick $256

Waltham $258

Wayland $268

Dover $272

Westwood $306

Lincoln $324

Needham $331

Lexington $352

Weston $362

Newton $372

Wellesley $401

Multi-Family Properties in Natick, Wellesley, and Newton

With sale prices and mortgage rates at a low and rents on the increase, more and more people are buying rental properties. While it can be difficult for a new investor to get financing on a property that is not a primary residence, cash buyers, owner-occupants, and those with a history of rental income or sufficient income to qualify for more than one mortgage if necessary, can do very well both in the short term and long term with multi-family homes. Rental income can provide immediate cash flow, while buying at the bottom of the market, particularly a property that has room for improvement, can generate a profit when sold years later.

In Natick, Wellesley, and Newton, the average sale price of a multi-family property increased 8% from an average of $528,000 in 2010 to $571,000 in 2011 (not accounting for sales that could take place during the 23 days left of the year). Still, there are good deals out there, particularly for anyone with the resources to handle a fixer-upper. 36 multi-families are currently on the market in these towns, from 2-family homes to mixed use buildings.

The following is a great calculator to determine return on investment, taking several factors into account: http://www.goodmortgage.com/Calculators/Investment_Property.html

For more information, please find my contact information as well as search for properties at www.torykeithrealestate.com.

Recent Metrowest home sales: October 2011

Lots of people have mentioned how interested they are in seeing recent sales, so I'll focus on that a bit more than my regular market updates. If you're interested in any other information or sales for other towns in the area, please email me and I'll get you what you need. Of course, you can always do your own searches here (or if you're on a smart phone, here).

Single family home sales in the last week for a few Metrowest cities and towns (10/17/11-10/24/11) - prices shown are sale prices:

Natick
17 Belmore Rd (3 bed Cape): $335,000
12 Oak Knoll (3 bed Ranch): $336,800

Wellesley
22 Elm St (3 bed Colonial): $825,000
40 Whittier Rd (4 bed Colonial): $842,000
50 Woodlawn Ave (4 bed): $1,000,000
56 Temple Rd (4 bed Multi-Level): $1,100,000
81 Maugus Ave (4 bed Contemporary): $1,500,000
37 Garrison Rd (6 bed Colonial): $1,690,000

Newton
6 Philbrick Rd (3 bed Colonial): $504,000
12 Roosevelt Rd (3 bed Colonial): $526,000
106 Brookline St (3 bed Cape): $542,000
23 Hemlock Rd (3 bed Cape): $537,000
23 Marcellus Dr (3 bed Colonial): $725,000
186 Lincoln St (3 bed Colonial): $923,000
76 Cotton St (5 bed Colonial): $1,337,000

Needham
14 Hazel Ln (4 bed Split): $507,500
672 Chestnut St (5 bed Colonial): $2,040,000

Wayland
19 Oak/Timber (4 bed Cape): $374,000

2011 Yard Waste Pickup

Just when the lawn mowing ended, it's time for leaf blowers and rakes! Here's the important leaf and yard waste pickup info for Natick, Newton, Ashland, and Framingham. You can also drop off your own yard waste, and in most of the other Metrowest towns, it's taken by drop-off only.





Natick:
Yard waste will be picked up on Monday, 11/14, for Tuesday’s trash collection day.
Yard waste will be picked up on Monday, 11/21, for Wednesday’s trash collection day.
Yard waste will be picked up on Monday, 11/28, for Thursday’s trash collection day.
Yard waste will be picked up on Monday, 12/5, for Friday’s trash collection day.


Framingham:
Leaf pickup will be on regular trash days during the month of November.
Brush pickup will be 10/24-10/28 and 11/5-11/9.


Newton:
Yard waste pickup will continue through 12/5.


Ashland:
Yard waste will be picked up for 6 Mondays from 10/10-11/14.

Metrowest September 2011 Market Update - Natick, Wellesley, and Newton

The fall housing market is well underway! Here are the key facts, with comparisons from last month, for Natick, Wellesley, and Newton:

In Natick, there are currently 85 single family homes on the market for an average list price of $599,000. 26 homes have sold in Natick in the past month for an average of $488,500 (up 7% from last month) after 69 days on the market (faster than an average of 95 days last month).

In Wellesley, there are currently 146 single family homes on the market for an average list price of $1,751,000. 16 homes have sold in Wellesley in the past month for an average of $1,170,000 (down 14% from last month) after 99 days on the market (faster than an average of 126 days last month).

In Newton, there are currently 193 single family homes on the market for an average list price of $1,188,000. 52 homes have sold in Newton in the past month for an average of $893,000 (down 2% from last month) after 80 days on the market (slower than an average of 70 days last month).

Metrowest Market Snapshot 6/19/11

In Natick, there are currently 77 active single family homes on the market for an average list price of $621,000, having been on the market for an average of 110 days.
There are 62 homes under agreement, with an average list price of $529,000. These homes were on the market for an average of 65 days.
In the past month, 27 homes sold for an average of $430,000 (list prices averaging $442,000), after 73 days on the market.

In Wellesley, there are currently 138 active single family homes on the market for an average list price of $1,677,000, having been on the market for an average of 133 days.
There are 37 homes under agreement, with an average list price of $1,404,000. These homes were on the market for an average of 150 days.
In the past month, 40 homes sold for an average of $1,145,000 (list prices averaging $1,210,000), after 88 days on the market.

In Newton, there are currently 217 active single family homes on the market for an average list price of $1,282,000, having been on the market for an average of 101 days.
There are 123 homes under agreement, with an average list price of $975,000. These homes were on the market for an average of 63 days.
In the past month, 63 homes sold for an average of $905,000 (list prices averaging $929,000), after 68 days on the market.