Don't underestimate value of curb appeal

The old adage "Don't judge a book by its cover" doesn't hold true in home buying, where many buyers purchase a house based on its curb appeal. Sellers thinking of upgrading their homes often focus on exterior remodels, according to 2007 statistics.

In 2007, upscale siding replacement was the most profitable project on the national level, recouping an average 88 percent of costs upon resale. Wood deck additions and wood window replacements returned 85 and 81 percent of costs, respectively. The least profitable projects were a backup power generator, the addition of a sunroom and home office remodel. This study compares construction costs with resale values for 29 midrange-upscale remodeling projects in 60 markets across the country.

Smaller-sized homes

Studies show that about two-thirds of the United States' largest cities now have "McMansions" -- new, much larger houses built on lots once meant for smaller homes. While these super mansions can change the character of a neighborhood, they can also increase area home values. However, many cities are adopting regulations designed to control the size of McMansions. According to a recent study, about 14 percent of cities surveyed limit building height as a way to keep new houses from being too large. About 8 percent create design review boards to approve plans for new homes, while about 7 percent have set limits on floor-area ratios. Buyers themselves have begun trending away from oversized houses with many builders reporting recently that the demand for 3,000-square foot range is much greater than that for 6,000-square-foot homes.

With such trends helping drive the real estate industry, the 2008 real estate market looks to be on a firm footing. To learn more about the specific trends for your area, check with a local realtor to get their insights on any changes you may be considering regarding your home.

Brought to you through the partnership of the Southeast Missourian and the Cape Girardeau County Board of Realtors.