Cost vs Value

Each time a friend asks me if they should do a project on their home, I ask them what their goal in that project is. Is it for themselves or is it for the resale of their home? The reason I ask this is because I'm trying to find the root of their desire for my opinion. Is it because I have great taste, or because I'm a Realtor?

Besides my great taste, I really think it's because I'm a Realtor, and they want to know if in the longer term will their investment (ie. the home improvement) will pay them back. So always easy to access is my December 2006 Realtor Magazine. The cover story is called "Cost vs. Value" and reviews the cooperative article between Realtor Magazine and Remodeling magazine. This was Remodeling's 19th annual report, the eighth of which Realtor Magazine participated.

Some of my favorite highlights for Hartford, CT remodels are as follows:

• A kitchen remodel costs $18,943, has a resale values of $13,870, thus gives a recoup value of only 73%.
• A bath remodel costs $14,385, resales at $10,705, thus recoups 74.4%.
• A basement costs 62,767, increases resale $36,161, thus recoups 57.6%.

For the Regional Averages in New England (mid range improvements, not upscale):

• Replacement roof: 70% of costs recouped
• Replacement siding (vinyl): 94.4% of costs recouped
• Replacement windows (vinyl): 86.6% of costs recouped
• Adding a deck: 79% of costs recouped

So what do I see in all of this...make your decisions wisely. These are averages done in a large study, you could be the people who do get a return of over 100% on your improvement. But what if you're the ones who get a less than 50% return.

Most of the homes I see, huge improvements likes the complete kitchen and bath remodels are being done in higher end homes. In the mid range homes, there are upgrades and improvements to the older fixtures. Nine out of ten times the only think I wish is that the people would spend $100 to repaint a few rooms. Just the touch of clean paint and getting your clutter out of the way is an investment in getting your home sold. Major projects have to be ones that you want done. You may move a year after doing those projects, but you did it for yourself and enjoyed the results.

Preparing Your Home For Sale:

You’re getting ready to put your home on the market and you want it to stand out from off the rest…but how do you make it shine? Here are our tips for making that great first impression.
Start by being your buyer, forget your attachments and be critical of your home, it’s not fun but it will give you perspective. Start where the buyer will start: Stand in front of your home and ask the following:
· Street Appeal - Is the street neat in front of your home, are your sidewalks weed free, as well as your driveway?
· Landscaping - Is the grass in good shape? Are the shrubs overgrown?
· The Home’s Exterior - Does the front door need a fresh coat of paint? How does the roof and gutters look? Do the windows need cleaning or repainting?
Now, enter the front door and remember the senses: Light, Color, Sound and Smell:
· Are all your lights working, with proper wattage bulbs? Are your drapes or blinds open to allow maximum natural light?
· Are the walls and floors done in neutral colors? Buyers can be put off by strong colors or outdated wall papers that are outside their personal palette .
· Are there mechanical noises or a running dishwasher that may be distracting?
· Can I smell pets or smoke?
Proceed through each room asking:
· Is there an easy, clear path into the house?
· Can I eliminate any items on the kitchen or bath counters?
· Are the bathroom and kitchen “sparkling” clean?
· Do any rooms look overcrowded? Is there one piece of furniture that can be stored out of sight?
· Are there items stacked on stairways?
· Could I weed out closets to make them appear larger?
· Are there stains on any ceilings?
· Do the hardwood floors need refinishing?

When you are interviewing your Realtor® go over each of the above items. Ask that if changed would it be considered a good investment and make your home more attractive. Remember as hard as you may look, your Realtor® will have a fresh eye and see what you not see.

More than likely the reason you’re selling your home is because you want to purchase a larger home. In other words, you’ve outgrown your home and probably have a lot of “stuff”. By removing or at least packing away some items during the listing period your home will look bigger and more spacious to potential buyers. If cabinets, closets, garage and basement are packed full the house will not appear large enough to buyers.

Home Inspections:

The majority of buyers have a home inspection contingency in their offer to purchase. We encourage our buyer clients to spend this extra money to insure that the major mechanicals are in good working order.
A licensed home inspector will check the property for evidence of wood destroying insects. If such evidence, active or not, is found buyers request treatment for this infestation prior to closing. This expense is normally covered by the seller.
The inspector will do an exterior exam of the roof, siding and chimney. From there he will start in the basement of the house inspecting the general structure, furnace, hot water heater, plumbing and electrical box. He will look for signs of water penetration. Next he will usually check any appliances included in the sale. A sampling of outlets are checked for grounding and reverse polarity. Windows are spot checked to insure property operation. Each bathroom fixture is inspected for leakage, proper installation and function.
It is highly suggested that buyers have a radon test done on the property as it is the second leading cause of lung cancer. Your home inspector can supply the test for you.
Buyers and sellers should plan on the inspections taking at least two hours. Buyers are encouraged to be in attendance so they may ask questions and get some instruction on the general operation of the house.
Some of the most common issues that arise as a result of home inspections are:
· Chimney needs re-pointing
· Double tapping in the electrical box.
· Reverse polarity of electrical outlets.
· Minor plumbing leaks.
· Automatic garage door emergency reverse not working.
· Furnace needs cleaning.

Mold is one of the hot topics at home inspections these days. An inspector or specialist may be brought in for testing it, but do your research first. You want to know what kinds of a mold are a threat and what kinds we live with everyday with out a problem (remember: Nobel Prize Winner Alexander Flemming found penicillin, a mold fought bacteria in 1928). At a later date we will discuss more about mold and it's rise in the inspection process.

If you are a handy owner, it makes sense to take care of any of these problems before your house goes under deposit. If discovered during an inspection the buyers will be requesting that a licensed contractor perform the repairs.

Interviewing a Realtor to List Your Home

The following are suggested questions for you to ask an agent when you are “hiring” them to list your property:
· How long have you been in the business?
· Are you a full time agent? Do you hold any other jobs?
· How many agents are in you office? Are they full time as well? Do the agents in your office tour the property?
· How many listings does your office presently have? How many do you have? How many will you carry at once?
· Where and how often will my property be advertised, and will it be a word or photo ad?
· What web sites will feature my property? How many photos will be on each website?
· Will a visual tour of the property be taken? Where will this tour be available on-line?
· Will you do open houses and how often? How is this an advantage to me?
· Will you prepare a photo flyer to be placed in the house? Ask to see a sample.
· What other marketing do you plan?
· What will you do if my homes does not sell in the first 30 days?
· Are Broker Open Houses warranted in our area?
· How do you handle multiple offers?
· How are showings of my home arranged? How do other Realtors® get access to my house? Are you present for all showings?
· How do you know if a Buyer is qualified when they make an offer?

When you want to ask these questions, please call us to answer! Team von Hollen wants to list your house right and get it sold quickly and at the best price for you…call us as 860-548-7483.

The Steps to Selling Your Home:

• Interview agents to find a full time professional in your area. Log onto our blog 2/5/07 for questions you should ask during the interview.
• Have your Realtor® prepare a comparable market analysis on your property. This will show you the current competition as well as similar properties that have closed within the past five months.
• Review the CMA with your Realtor® and fill out the listing agreement. At that time the CT Sellers disclosures as well as Inclusion/Exclusion form will be filled out.
• Your Realtor® will go through each room with you giving you suggestions on how to best stage the home and list any needed maintenance items. Measurements and photos will also be taken at this time, or when proper staging is complete.
• Your property will be entered into the MLS system, a sign will be ordered and ads placed within 24 hours.
• An appointment will be made with you by our team to shoot photos for the visual tour.
• The “Team” will schedule a Sunday open house at your convenience and will have the office agents tour on the first or second Tuesday following listing.
• Upon receipt of an offer your agent will review all aspects of the offer with you. At the same time any changes in the market will be discussed as well as any recent sales or new listings.
• When you have agreed on a counter offer your agent will verbally pass this along to the selling agent.
• Once all conditions of the contract are agreed to verbally, a revised copy will be signed by the buyer and then the seller. Your agent will then forward a copy of the sales agreement to your attorney along with a copy of your deed for his/her use.
• In the event the buyer requests repairs or improvements as a result of the inspections, a letter will be sent to your Realtor® with these requests. Your Realtor® will review and help you decide which items are necessary for the sale to continue. A letter will be prepared and forwarded to the seller’s agent.
• Once the buyer has mortgage commitment your agent will notify your attorney and their office will schedule the closing. As soon as the closing is scheduled you will notify the utilities.
• Attend the closing.