*These commission rates assume that we are offering the full 3% to the buyer's side broker/agent in the MLS.
We do not charge administrative fees, and we are very flexible in our listing periods. Our listing services and commission rates can be structured to meet your needs.
Contact us.
Thinking of fixing up your home to sell it for more?
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Cost vs. Value: Which home
improvements really pay off?
By Erin K. Witt
It's time to sell your
home. Perhaps your family is expanding, or growing
smaller as children leave the nest. Maybe the changing
job market is taking you to greener pastures. But no
matter what the reason for the move, many decisions must
be made before attempting to sell your existing home.
One decision many homeowners
struggle with is the extent of work they are willing to
put in to prepare for the sale of their home. Some
sellers want to make every effort to show their property
in top condition and get the best price. Others cannot
justify the time, energy and expense major home repairs
may require.especially when planning a move of their
own.
If the seller has the financial
means to complete repairs and improvements to the home,
they most certainly should prior to listing their home
for sale, Phillip Todd, a REALTOR ®
with Sycamore Group,
recommended. This will maximize the sale value and
minimize the time to sell, he explained.
Selling a
home "as is" often scares buyers because they are
hesitant to purchase the home, for fear "as is" means
there are serious problems. In truth, the problems could
simply be cosmetic in nature,. he said.
Many buyers like bargains on
homes that need work. Assume a home is worth $100,000 in
good condition, Todd said. But the home for sale
needs $10,000 in repairs. Logically, the seller
figures they can get $90,000 for the home .as is..
Unfortunately, if the buyer is
the one who has to come up with the $10,000 for the work
to be done, has to schedule the work and tolerate the
nuisance of remodeling, they expect to benefit from the
investment, not just break even,. he explained.
Why buy a home for $90,000, put
$10,000 into it, and have it be worth $100,000 when the
work is done, when a buyer can purchase a home down the
street already updated and complete for $100,000. with
no hassles, no inconvenience and no out of pocket
repairs?.
In reality, Todd explained, the
buyer will usually want to pay $90,000, minus the value
that they perceive all of this time and work and money
is worth to fix up the home.
In this scenario, the
$90,000 home is selling for $82,000 because the buyer
wants a return on his or her investment of time and
money in making all of the improvements,. Todd
explained. .In this example, the seller lost $8,000 in
home equity by trying to sell "as is"..
Home repair should be part
of every homeowner's strategy if they want to maximize
their profit potential. However, some sellers,
because of a lack of funds, time constraints or perhaps
an illness, might not be able to do repairs and
improvements, Todd acknowledged.
In this case, the best
alternative is to prepare the home properly by cleaning,
arranging and organizing the house to make the best
impression on the buyer,. he advised.
In addition to repairs,
many home improvements will also boost home value. Of
course, some improvements offer a better return on
investment, or ROI, than others.
One general school of
thought is that money invested in kitchen and bath
remodels is the most .recoupable. in the sale of the
home. In my experience, this holds true,. Todd
shared.
Todd said flooring and
lighting can also drastically improve the cosmetic
appearance of a home, and are money well spent.
If you want to make
improvements with the most bang for the buck, simply
painting a home can make dramatic changes in the
appearance and increase the value.either by garnering a
higher sale price, or by shortening the time to sell,.
he added.
Although it is tempting to
add trendy, luxury items to a home to encourage its
sale, this is not a smart selling strategy, Todd
cautioned.
On the whole, luxury items
do not garner a good ROI,. he said. .Features like
central vacuums, Jacuzzi tubs and swimming pools are
items you should buy to enjoy while living in your home,
not to sell your home. Luxuries may impress a
buyer and may even tilt a buyer in your direction over a
competing property, but rarely result in a sale price
that would recoup your investment..
Here are the top five best
returns for cost vs. value in home improvements,
according to Remodeling Online. Data represents national
averages.
Home Improvement Job Cost Resale Value
Return on Investment
Kitchen remodel $14,847
$13,138 88%
Second story addition $67,744
$56,770 83%
Bathroom remodel $9,748 $7,952
81%
Family room addition $47,764
$36,170 75%
Master suite addition $63,736
$45,610 71%
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