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.