Seller Tips
Which home improvements give the best payback?
If you’re thinking about remodeling your kitchen, or finishing your basement, you probably want to get your investment back when you sell your home. But when it comes to payback value of home improvements, some are definitely more profitable than others. As a general rule, kitchen and bathroom projects usually get a nice return on investment, typically 90% or more. Things like adding rooms or finishing basements tend to pay back the least. Finishing a basement usually returns less than 50%, so it’s not a project likely to show profit at selling time.
There are a number of factors that go into determining how well a project will pay back. Payback value depends a lot on the current market conditions in your area. If the market is hot and homes are selling fast, you can expect a higher payback value than you would get in a slow market.
The type of project you do and how it fits in with other homes in the area can have a big influence on payback too. If you put your money into the wrong type of improvement, you won’t get your money back. But if you're smart about what you do, you can make money. The payback will be better on improvements that are in demand and conform to neighborhood standards. Adding a second bathroom in a neighborhood where most homes have two bathrooms will give a high return on investment. Building a large addition that makes your home twice as big as the other homes on the block probably won’t pay back very well. Likewise, the popularity of a project will factor into how much it pays back. An improvement heavily customized to your wants and needs won’t pay back as well as something more common to other homes in the neighborhood.
Another factor to consider is the cost of the improvements. If you can do the work yourself, you can save significantly on the cost of the project and greatly improve the chances of getting a good return on the investment.
The list below is compiled from several published surveys and shows typical payback for some popular remodeling projects:
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Kitchen remodeling – 90%
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Add a bathroom – 90%
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Bathroom remodeling – 80%
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Install central heating – 90%
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Install central air – 75%
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Add a deck – 70%
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Replace windows – 70%
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Add a room – 55%
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Build a pool – 45%
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Finish a basement – 40%
Preparing Home For Sale
Before your home goes on the market, take some time to evaluate it as if seeing it for the first time. In a sense, you should become the buyer in order to see things from their point-of-view. What things require immediate improvements? What are the most attractive and desirable features?
In an occupied home, remove clutter to make rooms appear larger and more spacious. In a vacant home, leave behind a few, well-positioned props to help buyers begin to picture their belongings in place. Leave major repairs to professionals and document the work you have done. Always vacate the home for showings; your presence may intimidate buyers and prevent them from imagining the house as their own.
Clean
Have your floors, carpets, and windows professionally cleaned. Pay very close attention to your bathrooms; they should be spotless. Get rid of offensive odors and don’t cook with foods which leave behind strong smells, such as fish or garlic; hide the litter-box and keep pets off carpeted areas. Thoroughly clean your oven and all major appliances. Inspect and clean the chimney if necessary.
Eliminate Clutter
Organize closets, cabinets, and pantries as well as kitchen drawers. Clear small appliances from countertops. Pack up family photos and collections; your goal is to depersonalize the home. Store moving boxes out of the way or rent storage space in another location.
Repair
Make functional repairs to items such as leaky faucets and
running toilets. Patch up cracks and holes in walls and tiles. Clean and align
gutters. Ensure all appliances that convey are in working condition. Replace
cracked window panes, broken door or window frames, and rusted hinges on
interior and exterior doors. Test all locks and door knobs; replace any that
are not in working order. Replace shingles or window shutters
as needed.
Stage
Apply fresh paint to your front door, it’s the first impression buyers have of your home. Make your foyer or entryway warm and welcoming. Arrange fresh flowers throughout your home and use potted plants to fill in empty spaces. Use plants of varying heights to add depth to rooms. Set your dining room table with attractive place settings to give buyers a sense of the formality of the room. Remove any extra furniture to make rooms appear more spacious. Vary the angles of large pieces of furniture in relation to the walls. Apply fresh, neutral paint to walls. Remove heavy drapes that block natural light. Expose desirable features by removing rugs from hardwoods and opening drapes to reveal peaceful views. Focus on most visible areas by arranging furniture to highlight fireplaces, full length windows, and built-in bookcases. Limit accessorizing to 3-5 items per piece of furniture; any more will become a distraction. Light the fireplace during cold months, but keep clean when not in use. Maintain a neat exterior appearance; trim trees, prune shrubs, mow and water lawn regularly, store garbage cans out of site.
Correctly Pricing Your Home For Sale
Pricing your home correctly is crucial to selling your home in a timely manner at the highest price possible. Current market conditions determine the value. Pricing too high or too low can cost you time and money.
Determining the best asking price for a home can be one of the most challenging aspects of selling a home. It is also one of the most important. If your home is listed at a price that is above market value, you will miss out on prospective buyers who would otherwise be prime candidates to purchase your home. If you list at a price that is below market value, you will ultimately sell for a price that is not the optimum value for your home.
Another critical factor to keep in mind when pricing your home is timing. A property attracts the most attention, excitement and interest from
the real estate community and potential buyers when it is first listed on the market.
Pricing Considerations:
• What you paid for your home has nothing to do with its present value
• The value some agents put on your property is not always accurate
• Homes you think are the same as yours may in fact be very different
• Ultimately, the buyer determines the value of your home based on comparisons they make to other houses currently on the market
• I have access to the latest technology to get you the most current market data available