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In considering any home improvement project, you
need to ask yourself a couple of questions: Why are you doing it? Is
it work that really needs to be done—a paint job or replacing a
leaky roof? Or is it an amenity you’d like that you think might
appeal to a potential buyer—a hot tub or home office addition, for
example. Will it add value to your home, or have no impact at all?
Or will it make your home more difficult to sell? Some
investments—like painting and yard work—involve relatively little
cash outlay and yet return many times your cost. Other improvements
that you think add value have no significant impact. Adding a
swimming pool is a good example. Besides the hassles of maintenance,
a pool can reduce your home’s appeal among families with small
children because of safety concerns.
Planning is everything
If there’s one piece of advice I would give every
homeowner regardless of the circumstances, it’s this: Plan first,
then do. Careful planning on your part is a prerequisite to
undertaking any home improvement project, major or minor. In fact,
the quickest way a “minor” project balloons into a major one is when
you haven’t thought things through in advance. I’ve seen more people
get in over their heads because they didn’t think things through
before starting work. Whether you hire someone or do the work
yourself, expect to spend more time and money than you initially
anticipate. But by choosing well, you can ensure that the work you
do adds the greatest value at the lowest cost.
Be methodical
Try breaking your list into “exterior” and
“interior” projects, then break it down further by room or outside
area. Decide which projects you’re going to take on yourself and
which will require outside help, and then do a rough cost estimate
for each job. One rule of thumb to keep in mind is that if you do
the work yourself, you’ll probably recoup more than what you pay out
for some improvements. You can probably save anywhere from 10 to 30
percent by removing hired labor from the equation. On the other
hand, you might pay more for work done by professionals, but the
improvements can speed up the sale of your property. Whether you
should tackle the work yourself or hire professionals depends on
several things. Do you have the time? Can your friends or relatives
help you, or are you going to do it all yourself? How skilled are
you and your helpers in the task at hand? You may decide to split
the job—the contractor does the major work and you do the finishing.
Doing at least some of the work yourself can still save you money.
Whatever you do, the key lies in doing it well. If that means hiring
a professional, do it. A poorly done job can do you more harm than
good. Now let’s take a look at some projects you might consider,
beginning with some simple steps that can reap huge dividends.
Catch ‘em at the curb
Here are some investments in your home’s exterior that I’ve found
through firsthand experience can pay huge dividends:
Paint
It should come as no surprise that surveys show
that painting the exterior of your home results in the greatest
return on time and money invested when compared to other
improvements done for selling purposes. An investment of
$1,000-$2,000 can mean adding $3,000-$4,000 to your asking price.
And if you can do a good job yourself, your profit is even greater.
Even if your home doesn’t need the full treatment, check the trim
around windows and doorways for cracking or peeling, and do any
necessary touch-up work. car.
Landscaping
Another key first impression is made by the
grounds of your home. If you can improve the attractiveness of your
landscape without spending a lot of money, you can add a good 5 to
10 percent to the value of your home. Minimally, you should prune
existing trees, shrubs and bushes, clean out dead plants and weeds
from flower beds and replace them with colorful flowering plants.
Because landscaping can become a high-maintenance headache if not
done carefully, choose hardy perennials that require minimal care.
If you have a damaged lawn, you may need to take additional steps.
The easiest step is to repair damaged sections with new sod. While
seeding is cheaper, it won’t produce grass overnight. A good patch
job can make for a great quick fix. Other lawn problems—dead areas
due to lack of sunlight or a tree’s root system—can be solved by
planting ground cover or creating additional flower beds. Like a new
paint job, a relatively inexpensive upgrade of existing landscaping
can bring far greater returns than what you spend. But don’t do
anything that would be deemed excessive by neighborhood standards.
The idea is to make your home more attractive, not stand out as an
oddity.
The driveway
Because it’s big, dark, and usually takes up a
significant portion of the property in front of your home, a
driveway can affect a buyer’s first impressions. If yours is in good
condition, make sure you keep it swept and neatly edged where it
meets the lawn. If yours is cracked, buckled or oil-stained, fix it.
Patching concrete can be a problem because matching color is
difficult; tar and asphalt are relatively easy to match. Whatever
you do, be careful you don’t create a bigger problem through
quick-fix solutions—use high-quality patching materials and sealers.
Decks and patios
These can be popular additions that add value,
especially with smaller homes, because they add living space. But
make sure that whatever you do is consistent with your home’s
architectural style and integrates well with your outdoor areas.
The garage
If your garage has that rough, unfinished look,
consider drywall and matching switch and outlet plates. At a
minimum, make sure all switches and outlets work. And give
everything a good cleaning.
Don’t neglect the minor details
It’s often the little things that really stand
out. If your mailbox is in poor shape, replace it. Varnish or
repaint your door if it needs it. A door knocker and brass kick
plate can also be a nice addition. Spruce up the entryway with new
light fixtures, potted plants and other decorative touches. With the
exception of adding a deck or patio, most of the steps I’ve touched
on here can be accomplished in relatively little time and without a
lot of money. But the difference in the impression your home makes
on prospective buyers will be dramatic. Ironically, some of the
big-budget items you might consider spending your money on will do
little to enhance the marketability of your home. Aluminum siding,
for example, is prized by some and loathed by others. Hot tubs may
or may not appeal to potential buyers. Watch out for changes that
you may find appealing but end up limiting your home’s appeal to
others. Besides swimming pools, other investments you probably won’t
see a return on are tennis courts and automatic sprinkler systems.
Unless they’re for your own enjoyment, don’t waste your money. One
major expense you may have to consider is a new roof. But if you
think you can pass the cost along to a buyer, forget it. Everyone
expects a good roof, and they’re not going to pay extra for it. And
a roof in poor condition can kill a deal quickly.
Making the best second impression
As with the exterior, I’ve found that there are
plenty of interior tricks to punch the right emotional buttons in
prospective buyers. In all rooms, certain minimum standards should
be met:
• Make sure all plumbing and electrical systems are in good working
order
• Repair cracks in the wall
• Paint—as is the case outside, a fresh coat of paint throughout the
house will more than pay for itself
• Remove wallpaper
• Replace missing molding
• Replace cracked or broken window glass
• Make sure window and door hardware match
• Install new floor coverings
• Install new light fixtures
• Make sure switch and outlet plates match from room to room
• Upgrade insulation in drafty or hot rooms
As is the case outside, a coat of paint can
literally make the difference between a sale and no sale. Be sure to
stick to neutral colors—white or off-white. It tends to make
everything look new, clean and bright. Be sure to paint everything:
inside closets, cabinets, pantries, etc. If a prospective buyer
opens a door and sees dirty walls or shelves, you’ve just wasted the
advantage you had gained by painting in the first place. Like paint,
new carpeting should also be in a neutral shade. This helps buyers
visualize their own furniture in your home.
Wallpaper, like wall colors, makes a personal
statement about the owner’s tastes. Remove it. Buyers want to
visualize what they would do with your house, and wallpaper gets in
the way of their dreaming.
Many buyers value good wood floors, so sand and
refinish yours if they can be restored. Otherwise, you might
consider new flooring. If your home is short on storage space,
consider how you can add shelving, cabinets or other storage systems
to remedy this deficiency. You may also consider replacing windows
and doors with more energy-efficient models.
Taken individually, each of the above
improvements may not seem like much. But you’ll find that the
cumulative effect of fixing even relatively minor problems will be
dramatic. A crack in the wall, a carpet stain or a light switch that
doesn’t work can send a negative signal that results in the loss of
a buyer. I’ve seen it happen.
Now let’s take a closer look at improvements on a
room-by-room basis, starting with your two most important rooms.
Kitchens and bathrooms have long been the top two
remodeling projects, and you can expect them to remain so for years
to come. They are the rooms that most consistently make or break a
sale. A new or updated kitchen, a sparkling bathroom…these are
features that help to sell a home.
The kitchen
If you can get away with a remodel rather than a
new kitchen, do it. Because the kitchen is so important, sellers
sometimes over-improve them to the point where there is no chance of
recouping their investment when they move. Don’t fall into this
trap.
Add a new coat of paint, refinish the cabinets
and counters, change drawer pulls and handles, install new
appliances, put down a new floor—but don’t gut and start over if it
isn’t necessary. When adding new appliances, be aware that many
buyers consider brand name to be an important factor.
If you don’t paint everything, at least repaint
the ceiling bright white. You’d be surprised how much it can lighten
up the room. Another great way to brighten a kitchen is to add a
skylight.
If you do choose to put in a new kitchen, keep in
mind what sells. Buyers are looking for lots of cabinets and counter
space, new appliances, and an easy flow between the sink, food prep
areas, stove and refrigerator. Think sunny, spacious and clean.
The bathroom
New fixtures, wall tile and flooring can make a
big difference. If the bathtub is in poor shape, you can replace it,
but a less expensive option may be to re-enamel it. If you keep the
old tub, at least regrout and recaulk it. A good bathroom remodel or
expansion can easily return more than 100 percent of its cost when
you sell.
If you’re feeling ambitious, adding a half-bath
or second bath to a one-bathroom house is another option to
consider, space allowing. Whatever the family size, one bathroom
never seems adequate to most people.
Bedrooms
For most people, the master bedroom is the third
most important room in the house. If you have a large home with four
or five small bedrooms and the floor plan allows for it, you might
consider combining two rooms into a master bedroom. If you have a
two- or three-bedroom home and a decent-sized lot, you might
consider adding another bedroom.
Trends to watch
A more recent hot remodeling trend is the “great
room”—combining the kitchen, dining and family room into one larger
living area. While lagging behind kitchen and bath remodels, it is
definitely a trend on the rise. Living rooms, family rooms and
formal dining rooms, on the other hand, are diminishing in
popularity.
Another relatively new wrinkle is the home
office. With more home-based businesses and more companies allowing
employees to telecommute, more people are looking for office-ready
space in their homes. A recent survey conducted by Builder magazine
found that nearly a third of buyers in their 20s, 30s and 40s plan
to use a room as a home office. Other rooms that are showing up on
more buyers’ wish lists are exercise and media rooms.
Questionable projects include fireplace additions
and installation of elaborate security systems. You can find
professionals who will argue for and against both of these projects.
But with concerns about home safety on the rise, security systems
appear to be moving into the “desirable” column.
Many of these projects are relatively inexpensive
and will easily pay for themselves. With some projects, you may not
recoup your investment, but you will have removed impediments to a
sale. If you don’t take care of things like leaky plumbing, drafty
windows or outdated light fixtures, you’re giving a buyer ammunition
to use against you during negotiations.
Home improvement “don’ts”
There are several things you can do that can
actually lower the value of your home or make it more difficult to
sell. Here are a few rules to keep in mind:
Do it well, or don’t do it at all
You may be tempted to do a lot of work yourself
to save money. That’s fine if you know you can do a good job. But if
doing it yourself means a sloppy paint job or bubbles in the vinyl
flooring, then I suggest hiring a professional. Hiring an expert can
often be cheaper and faster in the long run. This is especially
important when dealing with electrical systems or plumbing problems.
Don’t over-improve
Any project that raises your home’s value by more
than 20 percent above similar homes in your neighborhood should be
reconsidered. The reason is simple. Say your home is typical in a
neighborhood of $100,000 homes, and you make $50,000 in
improvements. Buyers looking for a $150,000 home are looking in
neighborhoods where that is the norm, not the exception.
Don’t make unique improvements
Sure, you may love the built-in bookcases on
every wall of your guest room, but prospective buyers will probably
view them as a nuisance to tear out—which means they’ll be less
willing to meet your price. Also, avoid remodels that make unusual
use of a particular room. Anything that limits flexibility will
limit interest in your home.
Don’t create a mess
Make sure your floor plan will make sense when
you’re done. Be careful not to make changes that impede the natural
flow of the house—closing off halls, doorways, etc. Room additions
in particular are often done very poorly. If it looks like something
tacked on to the original house, don’t do it. Adding a bedroom whose
only connection to the rest of the house is through another bedroom
should also be avoided. As you can see, squeezing every last dollar
out of your home sale can be a fairly involved process. But when you
consider the end result—a quicker sale and top dollar for your
efforts—I think you’ll find that a few well-chosen home improvements
are worth both the time and money.
Don’t plan on moving soon if you’re spending a
lot You probably won’t recoup your investment if you plan to move in
less than two years. If you plan to move sooner, spend less money
and focus your efforts on the most egregious problems. For example,
turn a bad kitchen into a decent one rather than a chef’s kitchen.
Please feel free to call me if you would like further explanation on
any of these topics, or if you have any real estate questions at
all. I simply see my mission as striving to be as helpful as I
possibly can to area home owners. I hope this special report
provides the information you need to be an informed home seller.
Sean L. Spencer
866-383-0707
http://www.seanlspencer.com/
Sean is always striving to be at the top of his
game, whether he’s playing golf, being a caring husband and father
or especially in his role as a leading real estate professional in
the Orlando area. In fact, helping people with one of life’s biggest
investments is something Sean loves more than anything. He
understands how much is riding on his clients’ investments. That’s
why he focuses 100 percent of his attention and expertise on your
transaction, never resting until he helps you reach your specific
goals. That’s the dedication that has become Sean’s trademark, and
the reason more and more clients are referring him to their friends
and neighbors.
Passion. Focus. Dedication. |
Squeeze
Every Last Dollar Out of Your Home Sale