DOLLARS AND SENSE
Sellers are competing for buyers these days. Actually, sellers are always competing against each other, trying to offer the best value in hopes of securing a full-price offer. Such offers usually come to sellers whose homes are in model condition and priced at, or below, fair market value.
While it’s critical to get your home in tip-top shape before your listing, care needs to be taken when you’re considering the impact of remodeling and renovating. Homeowners who over-improve run the risk of not being able to recoup their investment, particularly if they find they need to sell very soon after completing such work.
Homeowners are encouraged to contact a real estate professional, who can conduct a comparable sales analysis, providing important information about remodeling’s impact on sales value.
A report published last year by Remodeling Magazine and REALTOR® Magazine gives some clues as to where to best spend your improvement dollars. Upscale siding and mid-range bathroom upgrades both can recoup 100% (or more!) of the investment cost. Even minor kitchen remodeling sees 99% of its cost recovered at sale time.
Basically, stick to designs that will appeal to a majority of buyers, since you can’t be sure that you’ll find that unique buyer who will appreciate the more exotic tastes you might enjoy. Be proactive, be practical and be prepared to offer a great value!