Real Estate Information Archive

Chart-Topper: Fiberglass?

Want to know what home upgrade delivers the largest return on investment for homeowners? Believe it or not, it’s fiberglass insulation.

For the second year in a row, Remodeling Magazine's Cost vs. Value Report reveals that a fiberglass insulation upgrade adds the greatest value to a home at 108 percent of the cost of the project, according to Hanley Wood, publisher of Remodeling Magazine. 

The Cost vs. Value Report compares the average costs for 29 popular home remodeling projects with the value those projects retain in 99 U.S. markets on a national and regional level. The report estimates that the average cost for a fiberglass insulation upgrade is $1,343 nationwide. The assessment on the potential return gained by the homeowner at resale was provided by real estate professionals responding to the annual survey. Real estate professionals estimated that one year after a fiberglass attic insulation upgrade, the project would increase the value of the home by $1,446. The research specifically estimated the cost of adding blown-in loose fill fiberglass insulation into a 35x30 attic to reach an R-30 insulation value. The R-value refers to an insulation’s resistance to heat flow. The higher the R-value, the better the insulation, according to Oliver Heating & Cooling. 

According to HomeAdvisor, fiberglass batts (those large fluffy pink sheets of fiberglass) are one of the least expensive ways to insulate your home, especially when walls are already open, such as in your attic. They must be installed properly, however, as one loose corner or tear can reduce the R-value. 

Fiberglass batts are ideal for those who need to insulate quickly and save money in the process. It is simply installed by anyone with a putty knife, a utility knife and a tape measure. When installed tightly and securely, fiberglass batts improve energy efficiency by 25 to 30 percent.

Again this year, as it did when it first appeared in the Cost vs. Value report in 2016, adding fiberglass insulation was the only project that had an average national return of more than 100 percent. By comparison, the average cost and average return at resale for the 29 projects in this year's report amounted to a 64.3 percent return if the home was sold within one year of completing the renovation.

Source: North American Insulation Manufacturers Association

Contact me today to learn more about which projects deliver the largest return on investment.

Reprinted with permission from RISMedia. ©2017. All rights reserved.

Mary B. Luca, MBA, ePro, Realtor
Licensed in DE & PA since 2007

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Over 1 Million Properties Shed Underwater Status in 2016

A just-released report reveals underwater properties are steadily declining, with more than one million shifting status in 2016—a possible turning point in the ongoing inventory crisis.

 
According to ATTOM Data Solutions' Year-End 2016 U.S. Home Equity & Underwater Report, the amount of "seriously" underwater properties in the U.S. decreased by over one million last year, while the amount of "equity rich" properties increased by 1.3 million. Seriously underwater is defined as a property with a loan-to-value ratio 25 percent or more of its fair market value; equity rich is defined as a property with an LTV ratio 50 percent or less.
 
The opposing gap between the two is a signal of the overall health of the housing market, as well as the potential for short supply to, if marginally, improve.
 
"Since home prices bottomed out nationwide in the first quarter of 2012, the number of seriously underwater U.S. homeowners has decreased by about 7.1 million, an average decrease of about 1.4 million each year," says Daren Blomquist, senior vice president with ATTOM Data Solutions. "Meanwhile, the number of equity rich homeowners has increased by nearly 4.8 million over the past three years, a rate of about 1.6 million each year.
 
"Despite this upward trend over the past five years, the massive loss of home equity during the housing crisis forced many homeowners to stay in their homes longer before selling, effectively disrupting the historical domino effect of move-up buyers that feeds both demand for new homes and supply of inventory for first-time homebuyers," Blomquist says.
 
Approximately 10 percent—5.4 million—of all properties with a mortgage are still seriously underwater, according to the report, marking the lowest level since 2012.
 
The top five states with the most seriously underwater properties in 2016 were Nevada (19.5 percent share), Illinois (16.6 percent), Ohio (16.3 percent), Missouri (14.6. percent) and Louisiana (14.5 percent). The majority of the top five metropolitan areas with the most seriously underwater properties was located in Ohio: Cleveland (21.5 percent), Akron (20.1 percent), Dayton (20.0 percent) and Toledo (19.9 percent).
 
The top five states with the most equity rich properties in 2016, by comparison, were Hawaii (37.8 percent), Vermont (36.9 percent), California (36.0 percent), New York (34.9 percent) and Oregon (32.0 percent). The majority of the top five metropolitan areas with the most equity rich properties was located in California: San Jose (51.6 percent), San Francisco (47.7 percent) and Los Angeles (39.2 percent).
 
With this substantial reversal of trend, how long will the inventory shortage last? The drop-off dynamic of shrinking underwater properties and expanding equity could indicate the answer is sooner than expected.
 
Source: ATTOM Data Solutions

Reprinted with permission from RISMedia. ©2017. All rights reserved.

Mary B. Luca, MBA, ePro, Realtor
Licensed in DE & PA since 2007

Search for Real Estate on our Websites:   www.TeamLuca.com  and www.LucaTeam.com
Get Our Mobile Home Search APP:           Text: LUCA to 87778 
What's Your Home Worth:                          Get 3 Estimates Instantly
Area Market Trends:                                   Instant Market Trends Report
Market Activity near your Property:            ePropertyWatch 
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 I Love and Live by Referrals – please refer your family, friends & co-workers to interview me!