Home Renovation Is Your Selling Trump Card: Here's What You Must Know

Written by Posted On Thursday, 03 April 2014 22:08

via: ziprealty.com

A home is what it is but it’s a worth lot more when you change the way it looks or increase its utility and/or aesthetic appeal. It’ll certainly cost you to replace those counter tops, get those walls a coat of paint or even whitewash the attic. In essence, all of this helps lift the value of your home by a lot more than what it ought to be at any point in time.

Sanette Tanaka of Wall Street Journal alludes to a recent survey by Houzz – a home remodeling and design website – and reveals how the costs for renovating high-end home projects could vary by the region in the U.S. For instance, homes in the west are pricey. An average home project in California can cost about $400 per square foot while the price could plummet to $200 just outside the state.

Some of the pricier elements of home renovation are the usual culprits such as the ductwork for air-conditioning, insulation, plumbing, permit costs, and electrical work. So it begs for the question: should you remodel your home? Are the costs worth it?

If you are ready to sell, renovation is almost mandatory

The commonsense answer to your question: it makes sense to remodel your home or certain sections of your home such as kitchens and bathrooms (even in a down market) simply because renovations just make your home much more appealing to buyers. Michelle Singletary of Oprah.com refers to a feature from Remodeling Magazine which reveals that in the year 2007, exterior upgrades alone helped projects earn back highest percentages in returns.

In some cases, the sale price increased by as much as 81%. But then, not every year is 2007 and the return on investments really depends on your location, the home itself, the neighborhood, and the state of the economy.

Statistics aside, it’s a good idea to remodel the house (at least by a little) before putting up the home for sale.

Sometimes, you just have to remodel: sale or no sale

Often, as the house ages, kitchens outdate themselves. The lawns need care. The curb appeal dwindles. The roofs are in a dismal state of repair and the windows need treatment. None of that would mean that you’d have to sell your soul to get anything fixed. Sometimes, little changes can make all the difference. Swap the cabinet doors and drawer faces. Just spend a weekend pruning the lawn. Go for cosmetic lifts instead of major overhauls.

Don’t indulge unless you are living in

To sell, you’d only need trump cards. You don’t need to spend the bank on it. Never indulge in anything fancy such redoing your 24-by-16 foot bedroom. You don’t need fancy dressing areas, spas, whirlpool tubs, sub-zero fridges, or Italian marble. If you are making changes, don’t go overboard with the material. While that doesn’t mean that you go cheap, look for the best material your spare cash can buy. Renovation can be basic and effective; no one said that it has to be indulgent.

As long as you balance aesthetics with costs, renovation should do your home good just before it sells. It does you good too since you’ll be able to recover the costs of renovation in addition to making money from the sale. A house is a huge investment for your buyers and renovation is the last line of defense as far as appeal is concerned.

What do you think about selling homes followed by home renovation? Do you think they add value? Let us know what you think.

Frank Pipolo is a 20-year professional executive and writer for WCI Communities, a Florida lifestyle community developer and luxury homebuilder, catering to move-up, second-home and active adult homebuyers.

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